Company Press Release
SUNCOM Telecommunications Acquires VirtualSellers.com
Shareholders to Vote on Company Name Change to VirtualSellers.com
VANCOUVER, British Columbia--(BUSINESS WIRE)--April 27, 1999-- SUNCOM Telecommunications Inc. (OTC BB:SNLMF) Tuesday announced that it has strengthened its relationship with VirtualSellers.com, making the deal an acquisition rather than a licensing agreement as had previously been reported.
SUNCOM has now completed its acquisition of VirtualSellers.com and intends to change its name to VirtualSellers.com, pending shareholder approval. Additionally, SUNCOM will seek shareholder approval to change the corporation's domicile of incorporation from Canada to the State of Wyoming, USA.
The acquisition was made for a combination of $198,000, 3 million shares of SUNCOM stock, with an additional 2 million ''earn-out'' shares to be issued upon meeting certain performance objectives.
Chicago-based VirtualSellers.com is a provider of eCommerce services for small and medium-sized businesses with 1998 revenues of approximately $400,000. Historically, VirtualSellers.com has seen its customers experience eCommerce sales increases of as much as 300 percent per year.
VirtualSellers.com charges a fee based on a percentage of each sale made on each of its customers' sites. Combined, SUNCOM and VirtualSellers.com 1999 annual revenue is projected at approximately $6.6 million.
The explosive growth in Internet-based sales, now projected by Forrester Research, a leading market research firm, is expected to reach $3.2 trillion in 2003 -- representing nearly 5 percent of all sales globally.
Dr. Dennis Sinclair, chief executive officer of SUNCOM stated: ''Our objective is to reach $45 million in consumer sales per month, which equates to less than 1 percent of the total market by 2002. Through our acquisition of VirtualSellers.com, we are uniquely positioned to reach our long-term goal of capturing over 5 percent of the eCommerce market for small to medium-size business transaction processing.''
On April 20, 1999, the company announced that it received a settlement of $975,000 U.S. from Triton PCS Operating Co. LLC, an independent affiliate of AT&T Wireless Network (NYSE:T - news), for the rights to the SUNCOM trademark and trade name.
''Selling the SUNCOM name provided us with a timely opportunity to consummate the company's transformation into a total eCommerce provider. We selected the name VirtualSellers.com because it best reflects the company's dedicated eCommerce business strategy,'' said Sinclair.
The special resolution of shareholders to change the name, along with the company's proposal to re-incorporate in the United States will be voted on at the company's shareholder meeting, which is scheduled for May 5, 1999, at 9 a.m. at the Hyatt Regency in Vancouver.
SUNCOM/VirtualSellers.com now offers the most comprehensive transaction processing capabilities available anywhere. While many companies offer partial eCommerce solutions, SUNCOM/VirtualSellers.com is a one-stop-shop for companies that want to take advantage of the power of the Internet to sell their products without excessive cost or technical expertise.
VirtualSellers.com has already accomplished this for over 100 companies through their integrated services including Web site set up and design, online marketing, order and transaction processing.
SUNCOM has successfully transformed itself into to a full-service e-commerce enabler that provides a turnkey solution for small and mid-size corporations. Its services include Web site design and maintenance, transaction processing, servicing and outsourcing large users of inbound toll-free telephone numbers and outsourcing of customer service facilities.
The recent creation of SUNCOM Internet and integration of VirtualSellers.com allows SUNCOM to offer merchants both inbound toll-free telephone ordering and Internet-based transaction processing services.
Safe Harbor Statement
Included in this release are ''forward-looking statements'' within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. There are certain important factors that could cause results to materially differ from those described in the statements made above. These factors include, but are no limited to, the performance of SUNCOM and its subsidiaries, the successful completion of the reorganization, the success of the company's strategic plans, Internet commerce in general, fluctuations in worldwide economic conditions and others. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.
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Contact:
SUNCOM Telecommunications
Cary Berman, 312/920-9999 (investor relations)
or
Market Pathways (media & investor relations)
Shannon T. Squyres, 949/955-1860
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