TLTG $30 target......
Wednesday June 16, 5:01 pm Eastern Time
Company Press Release
Stockreporter.de Announces Investment Opinion on
Teltran International
Stockreporter.de Begins Coverage of Teltran (TLTG) With a Strong
Buy Recommendation and a Target of $30 - $45 Per Share
NEW YORK--(BUSINESS WIRE)--June 16, 1999-- Teltran International (OTC BB:TLTG - news) Wednesday received a
new strong buy recommendation from the respected Stockreporter.de, a leading European financial internet publication.
The Stockreporter.de specializes in the coverage of micro caps and undervalued OTC:BB companies. The Stockreporter.de is
the first analyst to begin coverage of Teltran and to release an investment opinion since Teltran became a fully reporting
company and since Teltran raised their 2000 profit expectations from $0.60 to $1 per share at a current price of only $4 per
share. The Stockreporter.de began coverage with a short term target price of $30 by year end.
The recommendation of Teltran was done on an unsolicited basis and the ''Stockreporter.de'' received no compensation for
the recommendation. The full text of this recommendation can be accessed at the ''Stockreporter.de'' website at
www.stockreporter.de and is available in two languages, English and German. The report includes the following information:
''In the USA, Teltran International is still considered a personal favorite and absolute jewel among the OTC:BB shares. Teltran
is one of the most exciting companies to come to our attention in recent years. Its growth potential is both dynamic and
unlimited. Teltran's international expansion will assure its continued growth into the 21st century. Its intention to list on a major
U.S. exchange as well as Berlin and London will give Teltran the international exposure that it already deserves. And not
without reason, since an Internet company that has already announced, would you believe, $1 profit per share for the year
2000 is worth buying for that alone. But there's more, because Teltran (TLTG) is currently valued with a P/E ratio of just about
4.5 based on the 2000 profits. We expect this share to virtually explode when it goes to the AMEX/NASDAQ in September.
The success lies in the company's operations:
The key area of business, Internet telephone service, is growing very fast. Teltran mainly winds up the highly profitable
overseas calls from the USA to an increasing number of countries over VoIP (Voice over Internet Protocol). In
connection with this, a general agreement for numerous countries was signed with OzeMail Interline so that Teltran does
not have to create any hardware requirements on site. Each country included in the agreement with OzeMail Interline
means additional revenue. If you look at the prices you will know why VoIP is so successful: one minute from the USA
to Hong Kong, for example, costs less than $0.10 compared to often more than $1 via conventional telephone
providers. And, without losing anything in the quality. The margins on these conversations are very high, so that Teltran
books substantial earnings per talk-minute. For example, the latest new agreements with OzeMail for Israel, Bangladesh
and Pakistan have led to Teltran raising their 2000 profit expectations from $0.60 to $1 per share. A lot of people are
already saying that 1999 is not over yet and that more agreements can still be expected, which would make even $1.50
per share look realistic in 2000.
More good reasons to go with this share - Teltran has a successful, varied product portfolio. As well as VoIP, a ''Class
A-Portal'' is being offered at www.teltran.com which can be compared to Yahoo any time. Moreover the popular
shopping mall at the site www.teltran.com is really exemplary. They have also succeeded with the Realtime rates and
their business pages. The Portal alone, based on the number of page impressions, is valued at $100 million if you
compare competitors' numbers. In any case Teltran CEO Byron Lerner wants to take the Portal as a spin-off to the
stock market this year. More and more often, additional proceeds per Teltran share of a substantial amount are being
mentioned here, which a successful stock market listing would have no trouble achieving.
A similar thing goes for another product by the Teltran company, the online-sale of music through the Internet. A while
ago the Teltran management, strategically very far-sighted, became part of the Antra Music Group with 2 million shares.
As early as this summer, Antra and Teltran will start the online sale of music via the Internet. If we look at the growth of
this market we can speak of extremely strong potential for revenue here as well. We expect according to earlier
conversations with the company this product will also go to the stock market as a spin-off at a later date, so that we can
expect a potential contribution per Teltran share here as well.
Moreover the company - as previously mentioned - expects to be listed on the Amex or NASDAQ by the end of the
3rd quarter 1999, probably even as soon as in September 1999. This will enable big investors and funds to buy this
share. It is namely not possible for them to buy OTC:BB shares. As Teltran announced a few days ago, they are now a
''fully reporting company'' and as such fulfill an important NASDAQ and Amex criterion. Furthermore in 1999 Teltran
expects to apply for listing on the Berlin and on the London stock exchange, the most important stock exchange in
Europe for small and medium U.S. companies. As Internet telephone services become an even stronger central theme in
Germany and Europe, more and more investments are to be expected from this side.
Finally, one critical point must be mentioned in order to discuss Teltran really objectively:
In May, numerous insider sales of Teltran were reported to the supervisory authority SEC (''filing 144''). Because of this
there have been a few negative opinions of late. We have discussed the subject intensively with the Teltran management and are
fully convinced that absolutely no relevant sales will take place over the next weeks. For the most part the reports are about
Venture Capitalists who have been investing in Teltran since its inception and who want to be prepared for the case of the
share-price exploding so they can sell parts of their investment in the fall. In our opinion this is a completely normal thing to do,
considering that in the fall countless new investors will appear to take over the shares of the previous shareholders. Moreover,
the free float of Teltran shares is only 20%, i.e. 2 million shares, so we can sit back and calmly wait for any development.
As company management assured us, over the next few months the company will again be drawing a great deal of attention to
itself with its ''first class news.'' In addition CEO Lerner considers just by going to a major stock exchange like Amex or
NASDAQ and the amount of large investment which will take place immediately afterwards to be the best PR for the
company. We approve this attitude of convincing by news and return figures as well as doing modest yet massive PR. These
tactics will be successful very soon and will drive share prices upwards.
For the time of listing in the fall of 1999, management believes that the share price will definitely be substantially higher. In this
context let us consider this Internet company purely on fundamentals: with profits for 2000 of $1.0 - $1.5 per share and a P/E
of conservatively 30, the result is a 12 month share price target of $30 - $45 just from operations alone. We therefore
comprehend management's target share price statements and assume that the price will be at least $20 during the listing phase in
three months. However, if expectations for the spin-offs of the online-sale of music and of the portal are confirmed, we would
raise the 12 month share price target to $45 - $60.''
The Stockreporter.de also reports that Teltran is aware of the increasing importance of the European and especially of the
German stock market. Therefore Teltran is going to be listed on two new major stock exchanges in Europe, on the Berlin
Stock Exchange and on the London Stock Exchange later this year.
The full recommendation of the Stockreporter.de and additional information (e.g. a corporate profile, a PowerPoint
presentation about VoIP, a new interview with CEO Byron Lerner) can be accessed at the ''Stockreporter.de'' website at
www.stockreporter.de which is going to be the No. 1 micro caps and OTC:BB site in Europe and especially in Germany. The
site is completely available in both languages, German and English.
Contact:
Stockreporter.de
Tim Kneib, +49 - 172 - 4025040
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