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Technology Stocks : Tel-Save Holdings (TALK) -- Ignore unavailable to you. Want to Upgrade?

To: Peter Zenger who wrote (196)	3/17/1998 10:41:00 AM
From: Helios	Respond to of 840

From their press release, looks like they tried to pull a fast one and the SEC caught them at it. As previously disclosed, the Company and the Securities and Exchange Commission have been discussing the valuation of the warrant to purchase 5,000,000 shares of the Company's common stock which was issued to America Online in conjunction with the Telecommunications Marketing Agreement (the "AOL Agreement"). Following these discussions, the Company will value the warrant at $20 million. The warrant was valued originally at the date of issuance at $9.1 million by an independent investment bank. The change in valuation will be amortized as advertising expense over the initial term of the AOL Agreement.