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Technology Stocks : GST Telecom (GSTX) 4th quarter earning -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (292)	2/8/2000 11:19:00 AM
From: Rob Preuss	Respond to of 369

[GSTX Sells Consumer Internet Assets] Tuesday February 8, 8:03 am Eastern Time Company Press Release SOURCE: GST Telecommunications, Inc. GST Telecommunications Sells Consumer Internet Assets ClearData.net to Also Purchase $25 Million in GST Network Services Over Five Years VANCOUVER, Wash., Feb. 8 /PRNewswire/ -- GST Telecommunications, Inc. (Nasdaq: GSTX - news), a leading Integrated Communications Provider (ICP) in California and the western United States, today announced the sale of its U.S. mainland consumer Internet customer base and other select assets to Phoenix-based ClearData.net, Inc. Under the terms of the agreement, GST will sell its mainland consumer Internet operations to ClearData.net for $5.1 million in cash, plus ClearData.net common stock valued at approximately $900,000. ClearData.net has also agreed to purchase $25 million in network services from GST in the five years following the sale. ``This agreement allows GST to concentrate on delivering enhanced broadband and Internet services to business customers in our western footprint,' stated Tom Malone, acting chief executive officer of GST. ``We are focusing our energy on developing a scalable IP network capable of offering virtually unlimited bandwidth. With such strong demand for our broadband and High Speed Internet capabilities, it's in our best interest to concentrate on the data-centric business market and partner with a consumer market provider.' ``Forging relationships with Integrated Communications Providers, such as this one with GST, will prove to be a key component of our business strategy as we continue to grow our organization and build out our network,' stated David G. Jemmett, chief executive officer of ClearData.net. Over the past year GST has established an Internet backbone and introduced a series of reengineered data products to capitalize on the explosive growth in demand for data services. The Company's products include Frame Relay, Asynchronous Transfer Mode (ATM), Point-to-Point Optical, and High Speed Internet Access. ClearData.net, a privately held, fully integrated provider of data communications services, offers a full suite of products and services including application and server hosting, high speed Internet access and managed services. With points of presence in major metropolitan markets and secured public and private peering arrangements, ClearData.net serves communications enablers and commercial businesses across the United States over its next generation national broadband network. ClearData.net is a trademark of ClearData.net, Inc. Additional information is available at www.cleardata.net. GST Telecommunications, Inc., an Integrated Communications Provider (ICP) headquartered in Vancouver, Wash., provides a broad range of integrated telecommunications products and services including enhanced data and Internet services and comprehensive voice services throughout the United States, with a robust presence in California and the West. Facilities-based GST continues to focus on its western regional strategy by anchoring its next generation networks in local markets and connecting them via long haul fiber networks. Visit GST's Web site at www.gstcorp.com. This release may contain forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from the projections made here. Additional factors that may affect actual results are contained in the Company's filings with the SEC, including the report on Form 10-K for the period ended December 31, 1998. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. SOURCE: GST Telecommunications, Inc.