ADGI Agrees to Acquire itsInternet Affiliate
March 29, 1999 04:59 PM
HICKORY, N.C.--(BUSINESS WIRE)--March 29, 1999--American Diversified Group ADGI announced Monday that it has reached agreement and been granted the right to acquire 100% of Global Transmedia Communications Corp. ("GTCC"), its internet telephony affiliate, Aventura, Fla.
The internet telephony market continues to show excellent growth and is projected to expand more rapidly than any other form of telecommunications in the international marketplace. In a study just completed by iLocus, Global IP Voice/Fax Market 1999, expected growth rate in IP voice and fax services is projected to increase from $236 million in 1998 to $517 million in 1999. ADGI seeks to maximize its opportunities in this market.
Under the agreement, a firm time frame has been established measured by GTCC's continued revenue growth under which ADGI will continue to increase its ownership in GTCC. This performance formula of expanding ownership tied to growing business is extremely attractive to the management and shareholders of both companies. During this time period ADGI continues to support the international expansion plans of GTCC and will continue to fund GTCC's entry into many new foreign markets.
By the end of the fourth quarter 1998, inquiries for GTCC's GTCNetLink services for other countries had exceeded original estimates. During the first quarter of 1999, ADGI and GTCC have worked closely together and upwardly revised their strategic business development for the Latin American market. The two companies are moving ahead in linking other Colombian cities to the calling services and are negotiating in three other South American countries with local partners. The current investment in expansion plans calls for a participating investment by local partners in each country.
Recently, Lucent Technologies stated: "Voice over IP is becoming more popular Latin America. There exists a great opportunity for new and established companies to enter these markets in Latin America." In Latin America there are opportunities to develop these services with existing carriers and Internet Service Providers. GTCC is pursuing development of its network with Internet Service Providers as they present the largest number of locations in each city and are the most experienced with the technology for transmitting Voice over IP.
The growth of GTCC's business supported by ADGI's continuing investment and increasing ownership will ensure ADGI's ability to increasingly benefit during the year from revenues generated by GTCC.
For further information, ADGI has a Web Page at www.adgrpinc.com and E-Mail address adgi@abts.net.
Executive Offices: 110 N. Center St., Suite 202, Hickory, NC 28601 - Tel: 828/322-2044 - Fax 828/322-3798. NY Investor Relations: 45 Rockefeller Plaza, Suite 2000, NY, NY 10111 - Tel: 212/332-5009 - Fax 212/332-3249. Global Transmedia Communications Corp. 305/931-4232.
Except for the historical information herein, the matters discussed in this press release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary based upon a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing demand, the impact of competitive products and pricing, changing economic conditions and other risk factors contained in the company's most recent annual report and other filings with the Securities and Exchange Commission. |
