OTCBB FTEL
For Immediate Release
October 21, 1996
Franklin & DCI Clarify Relationship
Westlake Village, CA.> Franklin Telecom of Westlake Village, California and DCI
Telecommunications Inc. of Fairfield, Connecticut announced today that they have
signed a new incentive agreement to redefine and clarify their cooperative relationship.
The contract which is financial in nature provides DCI the right to acquire an ownership
interest in FNet based upon the amount of capital raised by DCI for FNet during the next
90 days.
Under the terms of the new non exclusive agreement, DCI will receive compensation of
10% of the cash raised in cash or 20% of the cash raised in FNet common stock for
capital which DCI is able to generate for FNet. "This is a good, sound business deal for
DCI", agrees Joe Murphy. "It allows us to continue to develop the financial contacts we
have made who are interested in supporting FNet."
DCI and FTEL confirm that the Franklin D-Mark Channel Bank, the Cyclone, the Franklin
Data/Voice Servers plus all other Franklin products and concepts are the sole property
of FTEL.
Previously, DCI was preparing an FNet East Coast operation. This activity will cease as
this requirement is not needed since the Franklin contract with GridNet which took FNet
national. DCI will focus on DCI main stream products.
FNet, a subsidiary of Franklin Telecom, is now poised to go forward with the second
stage financing of $10,000,000 and the IPO of FNet. By licensing proprietary software
and hardware products from Franklin Telecom, FNet is able to offer its customers
superior quality services on highly advantageous terms.
More information can be obtained by contacting Helen West, Shareholder Relations, at 805-373-8688.
Franklin Telecom, founded in 1981, designs and manufactures communications devices and software.
Franklin has an installed base of over 100,000 nodes. Franklin is traded on the Over The Counter Market
as "FTEL". |
