All,
For those of us still holding our DCTC shares-soon to be CRZN- here's some news about where we're going.
A rather prestigious group with LecStars management team. I'm sure some prestigious salaries come with such talent. I hope such expertise produces increased shareholder value. We shall see.
Hey! DCTC hit .05 today! It's a spike. LOL!!!
Onward,
George
_______________________________________________________
Corzon, Inc. and LecStar Communications Corporation
BRIDGEPORT, Conn. and ATLANTA, Jan. 23 /PRNewswire/ -- Corzon, Inc. (OTC
Bulletin Board: CRZN - news), an international telecommunications company and
LecStar Communications Corporation, hereby confirm that a majority of
shareholders of LecStar approved an Agreement and Plan of Merger between
Corzon and LecStar as announced January 22, 2001. The following is
information regarding LecStar, its operations and its management.
About LecStar
LecStar was originally incorporated in Delaware as Empire Technology
Corporation in May of 1998 to enter the telecommunications market offering
enhanced services brought about by new technologies. The Company changed its
name to LecStar Communications Corporation in May 2000 and conducts all
operations from its main facilities in Atlanta, Georgia.
LecStar continues to achieve milestone objectives while implementing its plan
to profitably deliver a full spectrum of traditional and advanced
communication services to wholesale and retail markets throughout the
Southeast.
The Company's communications infrastructure is composed of advanced network
technologies that integrate local, national, international and ISP carrier
networks into a single ``meshed'' network architecture. LecStar uniquely
supports the worldwide transport of communications with carrier class
reliability, regardless of application or bandwidth requirements and is
strategically positioned to capture significant market share in both
traditional and broadband markets. Transcending traditional CLEC business
models, LecStar is an Integrated Communications Carrier (ICC) providing
broadband services, dedicated ATM connectivity and flexible bandwidth that
efficiently delivers voice, data and Internet applications over a single
converged network.
The Company has interconnection agreements with the primary incumbent local
exchange carriers throughout the southeast, including BellSouth, Verizon,
Sprint and Alltel that allow for resale of the incumbent's services, leasing
and resale of unbundled network elements (UNEs), and the collocation of
LecStar equipment with that of the incumbent's in their central switching
facilities.
On the retail level, LecStar's converged networking capabilities provide
cost-performance advantages and expand the Company's marketing opportunities
in smaller businesses, second-tier geographies, and many non-US companies
that have dedicated Internet connections. On the wholesale level, LecStar's
network capabilities offer functional enhancements to other facilities-based
CLECs, ISPs, and data providers, as well as non-facilities-based third-party
telecommunications marketing concerns.
LecStar's network operations center became operational during the third
quarter of 2000 with the activation of high-speed fiber-ring circuits
connecting its operations and switching center with BellSouth's region-wide
network and switching systems. The Company has completed installation of a
Lucent 7RE - class five switch, and completed collocating ATM/IP systems at
BellSouth tandem switch centers in five BellSouth LATAs. With the activation
of circuits connecting all LecStar switching centers, the Company's network
will be operational throughout Georgia. The recent installation of LecStar's
first local broadband circuits and customer premise equipment occurred in
January 2001.
LecStar is now preparing to roll-out low cost direct worldwide local access
to the US public telephone network system through IP circuits terminating at
its Atlanta switching facilities.
LecStar has a fully operational customer service center with carrier class
systems and procedures in place. LecStar has implemented real-time
provisioning systems that allow it to order network elements and services in
real-time directly from BellSouth. Additionally, data and voice transfer
links have been installed and tested between LecStar and its strategic
marketing partners. Billing and management systems have been installed and
thoroughly tested along with the implementation of an interactive voice
response system for automating many customer related tasks. During the latter
part of 2000, customer service representatives were hired, trained, tested
and given live provisioning experience.
LecStar believes it will have competitive advantages for several reasons:
1. The implementation of its technology and the ability to offer
comprehensive integrated services at competitive prices.
2. The ability to reduce customer acquisition costs through its utility
partners opens markets not profitably available to other
competitors.
3. LecStar's approach to a second generation "Smart Build" has allowed
it to expand its network with considerably less capital expenditure
than other CLECs. The Company's approach to network expansion is
strictly success-based: "Build to meet the need."
4. LecStar's management team possesses industry knowledge and
capabilities that provides for strategic focus in today's rapidly
changing industry.
Several of LecStar's services were launched in October 2000 and at year-end
almost 9,000 lines had been converted over to LecStar from other service
providers. LecStar plans to add over 30,000 lines during 2001.
LecStar has executed joint marketing agreements with Cobb EMC, and Marietta
Fibernet. Cobb EMC is the country's second largest electric management
cooperative, serving over 143,000 customers directly and almost 300,000
customers by providing billing services for other utilities. Marietta
Fibernet is the telecommunications subsidiary of the Marietta, Georgia city
government, serving over 42,000 customers. Both of these partners have
launched significant marketing programs aimed at promoting traditional local
and long distance telecommunication services to high use residential and
business customers. Marketing agreements and/or letters of understanding have
also been executed with third party telecom agents who operate throughout the
Southeast US and who have the experience to successfully launch a marketing
effort focused on LecStar's broadband service offerings.
Management
LecStar's management team is comprised of highly skilled individuals with
extensive experience in major corporations and in particular, the
telecommunications industry.
William S. Woulfin, Chairman of the Board and CEO, served in management
positions in both the Ohio Bell Telephone Company and Bell Telephone
Laboratories for over ten years. For the past 21 years, he was Executive Vice
President of Computer Generation Incorporated (CGI) where he was responsible
for worldwide sales, marketing and new product planning (OSS Systems).
W. Dale Smith, President and Director, has over 30 years experience in
management in the public and private sectors. Mr. Smith began his career with
Sonoco Products Company and for twelve years advanced through various
executive management positions serving as National Accounts Sales Manager,
New York City, and Southeastern Regional Marketing and Sales Manager. Mr.
Smith resigned from Sonoco to become Kentucky Governor John Y. Brown's
Commissioner of Commerce and Deputy Secretary of the Commerce Cabinet. During
these years he managed five departments, maintained offices for Kentucky on
four continents and was instrumental in bringing in over $2 billion in new
investments, ranking Kentucky in the top five states in the nation.
John C. Canouse, Director, has been actively involved in the capital and
securities industries for over a decade. Currently, he is Senior Vice
President with J.P. Carey Enterprises and concurrently the position of
President and Chief Executive Officer with CorpFin.com. His experience
included executive positions with J.P. Carey Securities and International
Assets Advisory Corporation. Mr. Canouse holds NASD Series 7, 24, and 63
licenses.
W. Bruce Lunsford, Director, was the former Chairman, President and Chief
Executive Officer of Vencor, Inc., a $3 billion company employing more than
69,000 people, and the largest full-service, long-term healthcare provider in
the United States. In 1990, 1991, 1992 and 1994, Vencor was selected by
Forbes Magazine as one of the ``200 Best Small Companies in America''. Mr.
Lunsford also founded two companies as a result of Vencor; Atria Communities,
Inc., which became the 3rd largest assisted living company in the U.S. and
was sold in 1998, and Ventas, Inc., which became the 2nd largest healthcare
real estate company in the U.S. Mr. Lunsford continues to serve as Chairman.
A native of the Greater Cincinnati area, Mr. Lunsford, a CPA and an attorney,
was employed by Alexander Grant & Company of Cincinnati from 1969 to 1974.
James D. Grenfell, Vice President, Chief Financial Officer and Treasurer, has
over 20 years experience in the telecommunications industry. Mr. Grenfell was
Executive Vice President and Chief Financial Officer of KMC Telecom, Inc.
>From November 1995 to July 1998 he served as Executive Vice President and
Chief Financial Officer of ICG Communications, Inc. Prior to joining ICG, Mr.
Grenfell served as Director of Financial Planning for BellSouth Corporation
and Vice President and Assistant Treasurer of BellSouth Capital Funding.
Prior to BellSouth, Mr. Grenfell spent six years with GTE of the South, a
subsidiary of GTE Corporation, including four years as Assistant Treasurer.
Reginald P. McFarland, Vice President and President of Network Operations,
currently serves as President, Network Operations of LecStar Telecom
Services, Inc. Mr. McFarland previously served as Senior Vice President,
Network Operations with ILD Telecommunications, Inc. Prior to 1989 Mr.
McFarland served in various managerial positions at AT&T. While with AT&T, he
worked with Bell Laboratories to resolve problems associated with integrating
ESS switches into the Bell switching network, as an Instructor in the
training center and Manager of the Atlanta and New Orleans switching offices.
Michael Britt, President and COO, LecStar Telecom, Inc. and LecStar DataNet,
Inc., currently serves as President and Chief Operating Officer for CLEC
operations. Prior to joining LecStar, Mr. Britt was the Vice President of
Southern Telecom, Inc., a telecommunications company focused on full service
wholesale telecommunications services in the Southeast. Prior to assuming his
current role Mr. Britt served as the Director of Mass Market strategy for
Southern Company and as Assistant to the Vice President of Telecommunications
Services. Prior to joining Southern Company, Mr. Britt was a member of the
Utility and Telecom business strategy practices of Anderson Consulting (San
Francisco and Atlanta) and PHB, Hagler Bailly New York, Chicago, Los Angeles
and Atlanta. In early 1996 Mr. Britt was awarded Andersen Consulting's
highest honor for worldwide strategic achievement -- the Ken Ernst Worldwide
Thought Leadership -- for his work on the value of broadband communications
in the electric utility industry.
Alan B. Thomas, Jr., Vice President, has over 29 years of management
experience with high technology and telecommunications firms, including 18
years of service with IBM, during which he coordinated strategic planning,
was National Sales Manager for Peripheral Products and National Manager of
Sales Operations. Mr. Thomas has also held executive sales and marketing
positions with Wall Data, Inc. and Capella Systems, Inc. Concurrently, since
1988, Mr. Thomas has been the president of CMR, Inc., serving the technology
and communications industry with capital formation and strategic development
services.
Donald G. Santavicca, Vice President of Administration and Controller, has
over 30 years of accounting and finance experience. Prior to joining LecStar,
Mr. Santavicca was the CFO for Gulf Coast Restaurants, Inc., where he was
responsible for all financial functions including new location financing,
budgeting, and financial reporting. For the 14 years prior to Gulf Coast, Mr.
Santavicca served as Vice President, finance and CFO for Servidyne Inc., in
Atlanta, where he was responsible for all financial functions, including cash
management, 401K and benefit plan administration, risk management, and
shareholder relations. After receiving his M.B.A., he worked for Mead
Corporation for 11 years in various financial positions.
LecStar utilizes Ernst & Young of Atlanta, Georgia as its auditors.
LecStar is headquartered in Atlanta, Georgia. Contact Jim Grenfell, CFO, at
404-659-9500.
Corzon is headquartered in Bridgeport, Connecticut. Contact Larry Shatsoff at
203-333-6389.
Note: Statements in this press release which are not historical may be deemed
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although LecStar and Corzon believe the
expectations reflected in any forward-looking statements are based on
reasonable assumptions, they can give no assurance that their expectations
will be attained. Factors that could cause actual results to differ
materially from LecStar's or Corzon's expectations include completion of the
pending acquisition of LecStar by Corzon, pending investments, continued
availability to originate new investments, the availability and cost of
capital for future investments, competition within the industry, economic
conditions and other risks detailed from time to time in Corzon's SEC
reports. The proposed transaction is subject to various conditions that may
not occur. No assurance can be given that the transaction will be closed, or
if it closes, that investors in Corzon or LecStar will retain any level of
value. The information with respect to LecStar has been provided to Corzon by
LecStar and has not been audited or verified independently.
SOURCE: Corzon, Inc. |
