ICMH.0055.News a.m, and more news coming per PR.B: ICM Telecommunications Announces Major New Strategic Partnersh
p with California-Based Digital Communication Service
B: ICM Telecommunications Announces Major New Strategic Partnership with Califor
ia-Based Digital Communication Services to Accelerate Growth ( PRIMEZONE )
GARDEN GROVE, Calif., Dec 16, 2003 (PRIMEZONE via COMTEX) -- ICM
Telecommunications, Inc. (Other OTC:ICMH), a rapidly growing provider of prepaid
pin-based products through its EPIS Point of Sales Activation (POSA) terminals,
today announced that it has entered into a major new strategic partnership with
Garden Grove, California-based Digital Communication Services to both accelerate
growth and maximize shareholder value in the year ahead.
"This is an enormously positive development for the longer term future of the
company and its shareholders and could not have come at a better time," said
Lake Oswego, Oregon-based ICM Telecommunications CEO Doug Hamby. "Through this
new partnership, we will have the opportunity to not only decrease our cost of
delivered services, but substantially increase our profit potential as well.
Moreover, we are already in continuing discussions that will yield additional
positive news in the next several days, and to be able to present guidance for
the year 2004 shortly thereafter."
"From our perspective, said Ken Cheatham, President of Digital Communication
Services, "the very strong penetration that ICM Telecommunications has made in
the Pacific Northwest, especially with its locations in the states of Washington
and Oregon, where we also have partner company operations, was a very big
incentive. We look forward to a long and mutually rewarding partnership with
Doug Hamby and his ICM team."
"In our initial working agreement," Hamby explained, "we will now be able,
through Digital Communication Services, to offer our merchants and their many
customers an important new addition to our suite of prepaid services -- payroll
cards for direct deposit for employers. In this program, employers can lower
traditional payroll costs by paying their employees using these cards, which
they can then take to our EPIS locations and access needed funds and other
services in a debit-like fashion, which is a major advantage for those who do
not currently have banking operations.
"The second important new addition," Hamby continued, "is stored value cards for
gift card programs. After initiating such a program, for example, one Pacific
Northwest retailer in just six months had sales of $8 million for such cards,
which can be given both as gifts or as a convenience for the purchaser when
making return visits to the merchant. They have prepaid their future needs and
the ability to have access to them."
Hamby said that in several days the company expects to report on improved
delivery systems for other prepaid services, and that the addition of these
improved offerings will enable the company to expand its operations into
Northern and Southern California, as well as Arizona.
"To fuel this growth, we are continuing discussions with several funding
sources," Hamby continued. "Over the near term, to fund our marketing expansion
plans, hire additional personnel, and upgrade our stock listing, we are seeking
total current additional funds that will net the company approximately $1
million in new working capital," he continued. "We believe this important
announcement today, and those in the days ahead, will permit us to be in a
better position to realize these needed infusions in the year ahead."
The company currently sells its products through high traffic retailers such as
convenience stores, grocery stores and fuel service station food marts. Their
returning customers are the most typical potential users of ICM's products and
services in the general consumer field. Going forward, Hamby said, the company
also anticipates marketing directly to travel centers and truck stops
nationwide. "We also anticipate the development of a network of independent
sales organizations (ISO) to market ICM products and services on a regional
basis, selling to the same kinds of customers the company has established in its
program rollout."
"Our industry is expected to continue to experience solid growth over the next
five years," Hamby said, "with the current $3.7 billion market expected to
expand by another 73%. In fact, some 74% of retail service providers are
expected to add POSA features to their stores by 2005.
"With the help of Ken Cheatham and his team, we will be in a position to be a
significant participant in that very promising market," Hamby concluded.
Statements contained in this release, which are not historical facts, may be
considered "forward-looking statements" under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are based on current expectations
and the current economic environment. We caution the reader that such
forward-looking statements are not guarantees of future performance. Unknown
risk, uncertainties as well as other uncontrollable or unknown factors could
cause actual results to materially differ from the results, performance, or
expectations expressed or implied by such forward-looking statements.
SOURCE: ICM Telecommunications Inc.
By Staff
CONTACT: ICM Telecommunications, Inc.
Doug Hamby
(503) 534-3663
(C) 2003 PRIMEZONE, All rights reserved.
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INDUSTRY KEYWORD: Telecom Services
SUBJECT CODE: PRODUCT
PARTNERSHIP
Company Announcement
Partnerships
Product Services Announcement
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