clwk .. maybe a one to get in before the close
HOUSTON--(BUSINESS WIRE)--March 31, 1999--ClearWorks Technologies, Inc. (OTC BB:CLWK), announced today that it has signed a contract to provide bundled digital services to 1,500 homes in the new Canyon Gate at Cinco Ranch subdivision in Houston. The contract more than doubles ClearWorks' contract base to 2,700 homes, increasing the company's estimated lifetime sales revenues from existing contracts to $61 million.
Without ClearWorks, homeowners would typically have to deal with a half-dozen different companies to get similar services. They could call a telecom like MCI/Worldcom (Nasdaq:WCOM) to establish long-distance service, and use Prodigy (Nasdaq:PRGY) for Internet access. In Houston, Southwestern Bell (NYSE:SBC) would probably provide local phone service, and Warner Cable (NYSE:TWX) could provide cable-TV. For movies, families could either drive to their local AMC theater complex (AMEX:AEN) or rent a video from their neighborhood Hollywood Video (Nasdaq:HLYW). ClearWorks changes all this by providing all of these digital services bundled together, and at a heavily discounted rate.
ClearWorks acts in conjunction with developers to build a fiber-optics network into new subdivisions and then pre-wires every house in the neighborhood for a full complement of bundled digital services. "Residents in ClearWorks-wired neighborhoods are getting Internet connections at a bi-directional speed of up to 100 megabits per second, which is 2,000 times faster than with a 56k modem dial-up connection. They get digital telephone service with all the add-ons like voice mail, caller ID, etc. They also get digital cable TV with absolutely no channel limitations, on-demand video rentals, closed-circuit security capabilities, a community Intranet and much more, all from one company," says Michael McClere, CEO of ClearWorks Technologies, Inc.
ClearWorks is currently negotiating with potential partners which may be able to help the company leverage its proprietary technology and penetrate the market even faster than its original estimates. According to the National Association of Home Builders, 1.5 million new homes are going to be started in 1999 in the U.S. alone. That means an almost endless stream of homes that could be wired for ClearWorks services.
"We want to own the brand when it comes to bundled digital services. Our goal is to become a household name like America Online (NYSE:AOL), AT&T (NYSE:T), or Sprint (NYSE:FON). When you think of bundled digital services in the future, you'll think of us," says McClere.
ClearWorks is better positioned than companies like AOL or AT&T because all of its customers are already completely fiber-optics based. The company's agreements with developers also enable it to have a steady, predictable cash flow well into the future. "We don't compete with major telecommunications companies which utilize cable to deliver faster Internet access to existing homes," emphasizes McClere. "Instead, we focus on building the whole technology infrastructure from scratch while the communities are being built. We believe this will continue to be a highly profitable and safe niche market for a company like us."
According to a Forrester Research (Nasdaq:FORR) study released last September, the telecommunications industry has not necessarily been in synch with consumers' buying patterns. "For bundling to work, service providers need to build packages that reflect consumers' price sensitivity. 64% of consumers state that price is the most important criterion for selecting a service provider," Forrester material states.
ClearWorks' aggressive pricing strategy, at least 50% lower than if purchased separately from individual service providers, fits well with public demands. These low prices give ClearWorks and its participating builders an additional competitive advantage. Major home builders at Cinco Ranch include Pulte Homes (NYSE:PHM) and Centex Homes (NYSE:CTX).
Certain statements in this release are forward-looking. Although ClearWorks Technologies, Inc. (the Company) believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Merger Communications (Merger) is a media relations firm employed by the Company. Statements and opinions presented here represent the views of the Company, not Merger, as the release is based on information provided by the Company. Merger and the Company believe that all information in this release has been obtained from sources considered reliable, but cannot guarantee that the statements presented herein are accurate or complete. Merger's compensation for its media relations services consists of a fee and stock. Merger can have a long position in the securities of the companies in which it distributes information for media use, and may be buying or selling securities in the course of its regular business.
For more information, visit www.clearworks.net or call David Drake at 713/267-2328, or e-mail at daviddrake@earthlink.net.
CONTACT: Merger Communications
David Drake, 713/267-2328
daviddrake@earthlink.net
mergerusa.com
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