DOT.com!!!!
DCI to Offer Internet Service to Internet Service Providers in Spain
Stratford, Conn., May 18, 1999 DCI Telecommunications, Inc. announced that its existing agreement with Retevision, the national cable company of Spain, has been expanded to enable DCI to rovide "bundled" voice and data transmission services throughout Spain. "Bundled" services include local and long distance voice communication, as well as high speed data transmission and Internet access at low cost.
This outgrowth will reinforce DCI's position as a low-cost data transmitter. The agreement with Retevision marked DCI's entry as a Competitive Local Exchange Carrier (CLEC) in Spain and gave DCI access to a microwave relay network that covers all of Spain including the Canary Islands and the Balearics. A fiber optic network also is being built out which will provide backup and redundancy for the carriage of traffic.
In addition to transmission offered to DCI's direct clients, the company also will offer backbone services to other carriers that have expressed interest in partitioning or co-locating at DCI's Madrid facilities. The service to be offered to carriers will also include data transmission capabilities. The company will provide interested Internet service providers dial-up Internet access to the public.
The expansion of this agreement raises DCI's capabilities to a new worldwide level. It is the first step in the segment of the company's expansion plan calling for utilization of the Internet for global voice and data transmission services. Spain is the first link in what is planned to be a worldwide Internet based network, which will include Virtual Private Networks capable of handling dedicated bandwidth to maximize the quality of voice and data transmission.
Impact of Restatements
DCI recently restated three quarterly statements for the period ended
December 31, 1998 in response to the Securities and Exchange Commission's (SEC) temporary suspension in the trading of its common stock.
The financial statements were restated to reflect the acquisition of Edge Communications under the purchase method of accounting rather than as a pooling of interest. One effect of the change was the addition of approximately $6.8 million of 'goodwill,' which will be amortized as a non-cash expense over 20 years. Revenues were reduced by $1,092,046 for the nine months ended December 31, 1998 and $4,844,211 for the nine months ended December 31, 1997. Aside from a reduction of the gross margin relating to the reduction in sales, there will be no other effect on Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the year ended March 31, 1999, which is a key measurement factor in the telecom industry.
This accounting change will have no bearing on the company's current or future business activities.
Pursuant to Rule 15c2-11, under the Exchange Act , brokers and dealers
should be alert to the fact that, at the termination of the trading
suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule.
DCI Telecommunications is a global provider of telecommunications services, including long distance, prepaid phone cards and Internet services. It has an extensive distribution network throughout North America, Europe and the Far East. The Company owns and operates switching facilities in Canada, the United Kingdom, Spain and Denmark, with facilities planned for the United States in the near future. Additional information can be obtained directly from the company or its web site at dcic.com.
######
Contact: Craig K. Murphy Director, Investor Relations DCI
Telecommunications, Inc., 203-380-0910 ext. 3108, email
InvestorRelations@dcic.com, www.dcic.com |
