Business Wire
TELEGROUP, INC. ANNOUNCES SALE OF CERTAIN AUSTRALIAN
SUBSIDIARIES WHICH HAD BEEN PLACED IN ADMINISTRATION
BUSINESS EDITORS
FAIRFIELD, Iowa--(BUSINESS WIRE)--March 11, 1998--Telegroup, Inc.
(NASDAQ: TGRPQ.O). On March 4, 1999, Telegroup Network Services Pty Ltd.
and Switch Telecommunications Pty Ltd., both wholly-owned subsidiaries
of Telegroup, Inc., were sold to Primus Telecommunications Pty Ltd.
for six million Australian dollars. The sale of Telegroup Network
Services excluded its subsidiaries, Newsnet International Ltd. and
RediCall Pty Ltd., which are planned to be sold separately. The boards
of director of Telegroup Network Services Pty Ltd. and Switch
Telecommunications Pty Ltd. appointed chartered public accountants
Ferrier Hodgson as Administrators to the two entities and their
subsidiaries in light of their distressed financial situations.
Ferrier Hodgson continues to seek to sell the Newsnet and RediCall
subsidiaries or assets of those subsidiaries. Telegroup's wholly-owned
subsidiary in New Zealand, Telegroup Network Services New Zealand
Ltd., has been placed in liquidation. Ferrier Hodgson was appointed
the liquidator of this subsidiary.
This press release contains certain forward-looking statements,
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including
statements regarding planned sales of subsidiary assets. Telegroup's
actual results might differ materially from those projected in
forward-looking statements as a result of numerous factors. Those and
other risks are described in the Company's filings with the Securities
and Exchange Commission.
--30--jc/ms*
CONTACT: Telegroup, Inc.
Robert E. Steinberg, Chief Administrative Officer
Phone (515) 472-5000
E-mail: rsteinberg@telegroup.com
KEYWORD: IOWA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS
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