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Technology Stocks : e.spire Communications (ESPI)

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To: john w. toigo who wrote (103)3/23/1999 9:07:00 AM
From: Hope  Read Replies (1) of 471
 
e.spire Selected by PictureVision to Provide Nationwide Internet Access for PhotoNet Service

Tuesday March 23, 8:30 am Eastern Time

PhotoNet Customers Access and Share Photos via Nationwide Internet Service. Later This Year e.spire Network Will Support AOL's "You've Got Pictures"(SM) Service

ANNAPOLIS JUNCTION, Md., March 23 /PRNewswire/ -- e.spire Communications, Inc. (Nasdaq: ESPI - news) today announced it will provide nationwide Internet access and backbone network service for PictureVision's leading digital photofinishing service, PhotoNet(TM) PhotoNet technology provides the foundation for digital photography services such as Kodak PhotoNet(TM) online, AOL's future ''You've Got Pictures''(SM) and Sony's ImageStation(SM) on PhotoNet(TM).

PictureVision, a Herndon, VA-based subsidiary of Eastman Kodak Company, will rely on e.spire's Tier 1 Internet protocol (IP) backbone and access services, high-speed Frame Relay and dial-up Internet access to move digital photos electronically between customer-designated Internet addresses and PhotoNet photofinishers nationwide. The new nationwide service replaces that of a group of local Internet service providers (ISPs) and
network providers.

''PictureVision photofinishing partners now account for over 50% of all rolls of film processed in the United States,'' said Phil Garfinkle, president and CEO of PictureVision. ''To help us meet customer demand, we have opted for a network company with a single nationwide infrastructure, uniform local access and cost-effective
pricing -- e.spire.''

''We are proud to be selected by PictureVision to provide end-to-end network services for PhotoNet,'' said Tony Pompliano, e.spire chairman and CEO. ''We believe our advanced network backbone and high-speed access services will play a major role in driving the growth and popularity of this next-generation service.''

PhotoNet represents the convergence of two technologies -- digital photography and the Internet, allowing customers to share and view their pictures over the Internet with family and friends anywhere.

PhotoNet customers simply drop off their 35mm and APS film at any of the more than 40,000 participating photofinishers in stores, shopping malls, photo shops and resorts including all locations offering Kodak Premium Processing, where it is processed and put online. Customers can then view and share their pictures on their computers, or in the future, at in-store photo kiosks like Kodak's Picture Maker and Pixel Magic's Photo Ditto. The images can be e- mailed, downloaded or made into photo gifts. Consumers can even order reprints right from their computers. Access is individually password- protected, and the basic service costs only $5-$6 more than the usual charge for the processing of prints. Customers can also order reprints and enlargements online as well as order photo gifts such as t-shirts, coffee mugs, mouse pads and puzzles.

Digital camera users can also benefit from PhotoNet by uploading digital photos to Kodak PhotoNet online or Sony's ImageStation on PhotoNet to be developed as traditional prints.

Later this year, e.spire's Internet network will handle digital photo traffic for America Online's ''You've Got Pictures'' sm online photographic service through a private peering arrangement between e.spire and AOL. AOL, in conjunction with Kodak and PictureVision, will offer the service to its 16 million subscribers.

e.spire will provide network backbone and local access services between the photofinishers who offer PhotoNet and PictureVision's distributed network of servers. e.spire's Internet backbone network and private connections to AOL will transport PhotoNet traffic at DS-3 (45Mpbs) speeds. In larger cities and popular resorts, e.spire will connect participating photofinishers to the backbone network via high-speed Frame Relay connections at minimum speeds of 56 Kbps. In other areas, dial-up Internet access will be provided.

About PictureVision

Based in Herndon, VA, PictureVision, Inc., the pioneer in online photography, is an independently operated subsidiary of Eastman Kodak Company. Its core technology provides the foundation for digital photography services such as Kodak PhotoNet online, AOL's future ''You've Got Pictures,''(SM) Sony's ImageStation(SM) on PhotoNet(TM) as well as leading image editing software programs like Microsoft Picture It!, MGI's PhotoSuite II, Live Pix 2.0 and Adobe PhotoDeluxe. The company provides the imaging industry with turn-key technologies and solutions for profitably increasing sales by leveraging the evolution to digital photography. PictureVision's premier product, Kodak PhotoNet online, allows consumers to easily see, share, store and use their photos on their computers simply by having their film developed by any one of thousands of participating PhotoNet retailers.

About e.spire

e.spire Communications, Inc. is a leading provider of integrated communications solutions, including dedicated access, local dial tone, long distance, advanced data, Internet and networking solutions, in markets throughout the United States. For more information on e.spire, contact www.espire.net.

Certain statements regarding the development of the Company's businesses, the markets for the Company's services and products, the Company's anticipated capital expenditures, anticipated EBITDA and other statements contained herein regarding matters that are not historical facts, are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. The important factors that could cause actual results to differ materially from those in the forward-looking statements herein (the ''Cautionary Statements'') include, without limitation, the Company's degree of financial leverage, risks associated with debt service requirements and interest rate fluctuations, risks associated with acquisitions and the integration thereof, the impact of restriction under the Company's financial instruments, dependence on availability of transmission facilities, regulation risks including the impact of the Telecom Act, contingent liabilities, the impact of competitive services and pricing, the ability of the Company to successfully implement its strategies, as well as the other risks referenced from time to time in the Company's filings with the SEC, including the Company's Form 10-KSB for the year ended December 31, 1997. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. The Company does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

SOURCE: e.spire Communications, Inc.
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