And the latest news...
********************************************************************************************
"Tuesday May 18, 8:05 am Eastern Time
Company Press Release
SUNCOM Completes CallDirect Enterprises Acquisition
VANCOUVER, British Columbia--(BUSINESS WIRE)--May 18, 1999-- SUNCOM Telecommunications Inc. (OTC BB: SNLMF) Tuesday announced that it has completed its acquisition of CallDirect Enterprises Inc. (www.calldirect.com) from CallDirect Capital Corp. (Alberta Stock Exchange: CDQ - news), a direct-mail catalog company located in Delta, British Columbia.
The acquisition has an estimated value of $500,000 and was made for a combination of cash and stock. CallDirect will be operated as a wholly-owned subsidiary of SUNCOM.
CallDirect sells a variety of innovative high-tech products via direct mail in Canada. Its product line includes items it has licensed as well as those owned by U.S.-based Hello Direct Inc. (Nasdaq: HELO - news), which has authorized CallDirect to sell its products in Canada. Hello Direct's 1998 U.S. revenues were $68 million, and CallDirect's marketplace, based on Canada's population, is approximately 10 percent of the U.S. market. CallDirect reported revenues of $1.4 million for the fiscal year ended Aug. 30, 1998.
SUNCOM will bring CallDirect's billing, collection, customer service and fulfillment needs into its existing call center family. The companies expect to create economies of scale and significant cost savings, resulting in increased profit margins.
''This acquisition dovetails perfectly into SUNCOM's dynamic business strategy,'' said Dr. Dennis Sinclair, SUNCOM's chief executive officer. He noted that the company's shareholders last week approved a merger with VirtualSellers.com (www.virtualsellers.com), which specializes in Internet commerce.
''SUNCOM has the infrastructure to handle the customer service components for CallDirect. And, through VirtualSellers.com, we will also enable CallDirect to process eCommerce transactions. Based on the results already demonstrated for comparable companies, we would expect CallDirect's eCommerce sales to double or triple its 1998 revenues.''
Bill McGinty, president and CEO of CallDirect, said, ''Teaming up with SUNCOM gives us the opportunity to focus on our core strength of offering the highest quality, leading edge products for our customers. SUNCOM adds value by handling the customer service aspects and increases revenues by equipping us for Internet sales.''
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 not limited to, the performance of SUNCOM and its subsidiaries, including CallDirect; the successful completion of SUNCOM's reorganization and the merger with VirtualSellers.com; the success of the company's strategic plans; the vigor of 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.
SUNCOM is committed to providing its clients with virtual customer service departments. Its offerings include independent ''call centers'' throughout North America that provide reliable customer service staffs and ''instant back offices,'' or all the functions needed to process invoices, shipping orders and financial transactions over the telephone or Internet. VirtualSellers.com provides businesses with customized, secure, and comprehensive eCommerce services for selling their products over the Internet immediately. VirtualSellers.com generates transaction fees for each transaction, including payment processing and credit verification. When the merger of SUNCOM and VirtualSellers.com is complete, the new organization will do business as VirtualSellers.com.
------------------------------------------------------------------------
Contact:
SUNCOM Telecommunications
Cary Berman, 312/920-9999
or
Market Pathways
Shannon T. Squyres, 949/955-1860
or
CallDirect Capital
Bill McGinty, 604/940-5630"
|
