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Technology Stocks : NHC COMMUNICATIONS (TSE:NHC) acquiring THE FIBER COMPANY -- Ignore unavailable to you. Want to Upgrade?

To: Lalit Jain who wrote (316)	3/27/2000 5:49:00 PM
From: Lalit Jain	Read Replies (1) \| Respond to of 856

NHC Communications Inc. announces second quarter fiscal 2000 results Second quarter highlights: - Significant contract with major U.S. Competitive Local Exchange Carrier (CLEC); - Completed re-engineering of company to focus on high growth opportunities; - Rapidly growing backlog MONTREAL, QC -- March 27, 2000 -- NHC Communications Inc. (TSE: NHC), a leading provider of carrier class test access and deployment solutions for the Digital Subscriber Line (DSL) service market, announced financial results for the three and six-month periods ended January 28, 2000. "Near the end of and subsequent to the second quarter, NHC made a number of significant achievements," said Mr. Sylvain Abitbol, President and CEO of NHC Communications. "As a result of these accomplishments the Company has made substantial progress toward its goals of solidifying its financial base. This progress is expected to be demonstrated in future results." During the quarter, sales totalled $1.4 million, compared with $3.3 million in the same quarter of fiscal 1999. The company lost $2.4 million, versus net income of $22,500 in the same quarter of last year. On a fully diluted per-share basis the loss was $0.19, compared with $0.00 in 1999. For the six months ended January 28, 2000, sales totaled $3.0 million, compared with $6.1 million in the first six months of 1999. The loss in the most recent period was $3.5 million, versus net income of $1,900 in the first half of fiscal 1999. The company lost $0.28 per share, versus $0.00 per share last year. Late Quarter and Subsequent Events - On January 26, the company entered into a contract with a major U.S. CLEC to deploy NHC's Virtual Cross Connect Solution (VCCS(TM)) to 435 collocation sites during the next two years. If the contract is fully realized, it is expected to produce revenue of at least $26 million during this period. Initial deployment is well ahead of schedule, a development that is expected to lead to a strengthening of this strategic partnership; - On February 15, NHC successfully completed interoperability testing between its VCCS(TM) product and the Intelligent Multiservice Access System (IMAS) marketed by Promatory Communications Inc. of Fremont, California. Promatory was recently acquired by Nortel Networks; - On March 14, NHC completed a Cdn.$21.4 million special warrants offering, out of which approximately Cdn.$9.8 million is payable to NHC. The Company plans to use the proceeds of the offering to service the growing demand for NHC's products in the U.S. by opening a central sales office and enhancing its marketing resources; - On March 22, NHC announced a strategic agreement with Hekimian Laboratories, Inc. of Maryland, a leader in the network testing industry, to integrate the two companies' product offerings. Hekimian Laboratories is wholly owned by Axel Johnson Inc.; - By March 24, VCCS(TM) actual sales realized for the third quarter totalled approximately $1 million and NHC's backlog for these products deliverable within the next 90 days was $3.9 million, compared to $500,000 for all product lines at January 28, 2000. These sales do not include additional purchase orders of VCCS(TM) expected for the fourth quarter. "Taken together, these developments are recognition that VCCS(TM) is now viewed as a leading technology in the telecommunications industry," said Mr. Abitbol. "NHC will use this technology to propel its growth to a leadership position in the industry." This news release includes projections and other forward-looking statements. While these projections and other statements represent our best current judgement, they are subject to risks and uncertainties that could cause actual results to vary. NHC Communications Inc. specializes in developing products that increase the competitive edge of its customers by applying innovative technology to the delivery of high-speed mixed media networks. NHC is committed to delivering superior solutions for physical layer network infrastructures. NHC sells through leading resellers supported by sales locations in Montreal, Boston, Chicago, Medford (NJ), and Paris (France). NHC may be contacted through its web site: www.nhc.com For more information contact: Sylvain Abitbol Sylvain Brossard, CA President and CEO VP Finance and Operations NHC Communications Inc. NHC Communications Inc. e-mail: pr@nhc.com e-mail: s.brossard@nhc.com Telephone: 1-800-361-1965 Fax: 514-735-8057 Nortel Networks is a trademark of Nortel Networks %SEDAR: 00001989EB