STAR Telecom and WorldPort Communications Sign Letter of Intent for Pan-European Fiber Capacity
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Feb. 22, 1999--STAR Telecommunications, Inc. (Nasdaq:STRX - news) today announced that it has signed a letter of intent with WorldPort Communications, Inc. (Nasdaq:WRDP - news) for the purchase of up to $55 million in fiber capacity between the two carriers over the next three years.
WorldPort will exchange capacity on their pan-European fiber network with capacity on STAR Telecom Deutschland's Project Apollo network in Germany.
As part of the new fiber alliance between the two companies, STAR has purchased $8 million of pan-European STM-1 fiber capacity on an IRU basis from WorldPort, which will be activated in April of 1999. The letter of intent provides for the exchange of private line capacity, purchase of dark fiber and lit and managed IRU fiber capacity. The two companies will interconnect their European backbone networks and switching sites in order to offer each other co-location services and switch partition services.
''We are looking forward to the opportunity to exchange services with WorldPort,'' said Chris Edgecomb, Chairman and CEO of STAR. ''In conjunction with the purchase of fiber capacity between STAR and WorldPort, we also intend to interconnect our networks and provide switching services to each other on a wholesale basis. By combining the geographic strengths of both companies, we can jointly extend our reach throughout the European marketplace as early market competitive entrants.''
''We are excited about being able to offer our customer base, which includes forty-five of Europe's largest Internet service providers, access to Project Apollo's 3,000 kilometer fiber backbone throughout Germany,'' said Daniel G. Lazarek, Executive Vice President. ''The availability of Project Apollo in Germany gives WorldPort an entrance into the world's third largest telecommunications marketplace.''
About STAR Telecommunications
STAR Telecommunications is a leading provider of global telecommunications services to consumers, long distance carriers, multinational corporations and Internet service providers worldwide. The company has become the seventh largest supplier of long distance services in the United States. STAR provides international and national long distance services, international private line, Internet services, prepaid calling cards, dial around services and international toll free services. The STAR Telecom global network connects over 43 countries worldwide and includes 17 global switching facilities, ownership in 17 transoceanic cable systems and a North American fiber network connecting 30 cities. Visit STAR Telecom at startel.com.
About WorldPort
WorldPort Communications, Inc., headquartered in Atlanta, Georgia (USA) is ''The Next Generation Carriers' Carrier'' providing international long distance and Internet services primarily to Europe and North America. The Company offers domestic and international voice, data, video, Internet traffic and other telecommunication services to long distance carriers, medium and large corporate customers, distributors and Internet service providers. For more information, please visit the WorldPort web site at wrdp.com.
Except for the historical information contained herein, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. The Company's future actual results could differ materially from the forward-looking statements discussed herein. A list of the factors that could cause actual results to differ materially can be found in the documents the Company files with the SEC, including those contained in STAR's prospectus, and the Form 10-K for the year ended December 31, 1997.
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Contact:
STAR Telecommunications
Kelly Enos or Ben Helvey, 805/899-1962
or
Morgen-Walke Associates
Todd Friedman or Jennifer Jarman, 415/296-7383
or
WorldPort Communications, Inc.
Phillip Magiera, 770/792-5800 |
