03/02 09:16 DCI Telecommunications and Wavetech International Announce
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DCI Telecommunications and Wavetech International Announce Stock Swap
STRATFORD, Conn., March 2 /PRNewswire/ -- DCI Telecommunications, Inc. (OTC Bulletin Board: DCTC) announced today that its Board of Directors has approved the exchange of 576,047 shares of its common stock, equating to approximately 2% of its existing shares outstanding, for 568,846 common shares of Wavetech International (Nasdaq: ITEL) that represents approximately 19.9% of its current outstanding shares.
Joseph J. Murphy, president & CEO of DCI stated, "This stake out position is rendered, in advance of completing the previously announced merger between DCI and Wavetech, to take advantage of certain business opportunities in which our businesses have real synergy and in order to reaffirm our commitment to increasing value to the shareholders of both companies." Completion of the merger itself is subject to, among other conditions, approval of both companies' shareholders and The Nasdaq Stock Market, Inc.
The companies are also in the planning stages of a number of other joint initiatives, including deployment of DCI resources to "jump start" the operation and distribution of Wavetech's existing and new products.
DCI recently announced it will begin operating as a Competitive Local Exchange Carrier (CLEC) throughout Spain as a result of an agreement with Retevision. The agreement allows DCI to offer its telecommunications services utilizing Retevision's Government license as a CLEC. In effect, DCI will become an alternative local carrier to Telefonica de Espana. DCI customers will be able to place phone calls anywhere within Spain at competitive, and in some cases, significantly lower rates than currently obtainable from the other carriers.
Retevision, based in Madrid, is the national cable television service provider in Spain and has the capability to provide service throughout the country. By establishing a network of wireless transmission facilities, over which its signal can be broadcast countrywide, it has implemented a creative solution to the costly process of running wire across the mountainous topography which is prevalent throughout much of Spain. Retevision's wireless network has been modified to allow DCI to seamlessly transmit its telecommunications services. Currently, Retevision is installing wireless transmission equipment within DCI's new Madrid office.
DCl has been building its infrastructure in Spain, over the past year, to be in a position to take advantage of deregulation. DCI has been targeting Spain as an integral part of its European expansion plan, as the opportunity for market growth and profit potential is great within this region. With a population of more than 39 million, Spain also attracts more than 40 million annual tourists. The current annual telecommunications market in Spain is nearly $10 billion. DCI is anticipating annual traffic in excess of $100 million for its CLEC business in Spain.
While significant, this release does not constitute an end to the Company's quiet period which was announced on December 18, 1998.
DCI Telecommunications is a global provider of telecommunications services, including long distance, prepaid phone cards and Internet services. It has an extensive distribution network throughout North America, Europe and the Far East. The Company owns and operates switching facilities in Canada, the United Kingdom, Spain and Denmark, with facilities planned for the United States in the near future. There are currently 10 operating facilities worldwide, serving customers in eight countries. DCI recently reported sales of $28.1 million for the nine months ended December 31, 1998 versus $8 million in the comparable prior-year period. DCI trades on the OTC Bulletin Board under the symbol DCTC. Additional information can be obtained directly from the company or its web site at dcic.com.
Safe Harbor Statement under the Private Securities Litigation Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the new uncertainty of future financial results, additional financing requirements, development of new products, regulatory approval processes, the impact of competitive products or pricing, unpredictability of patent protection, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission. SOURCE DCI Telecommunications, Inc.
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/CONTACT: Craig K. Murphy, Director of Investor Relations of DCI Telecommunications, Inc., 203-380-0910, ext. 3108, or InvestorRelations@dcic.com/
/Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 107358/
/Web site: dcic.com -- NYTU024 -- 1097 03/02/99 09:00 EST prnewswire.com Copyright PR Newswire 1998. All rights reserved.
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