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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Carol S. who wrote (4401)	4/3/1998 2:39:00 PM
From: Quasar	Read Replies (3) \| Respond to of 19331

DCI Telecommunications to Acquire Payless Communications PR Newswire - April 03, 1998 14:17 DCTC %TLS %CPR %FIN %TNM V%PRN P%PRN Jump to first matched term STRATFORD, Conn., April 3 /PRNewswire/ -- DCI Telecommunications, Inc. (OTC Bulletin Board: DCTC), an international supplier of telecommunications services, announced today the signing of a letter of intent to acquire privately owned Payless Communications, Inc., a long distance supplier out of Santa Ana, California. Payless is one of the fastest growing long distance and calling card companies on the West Coast. The transaction, with an expected valuation of $10 million, involves a combination of DCI stock and cash. The structure will be incentive based, the stock portion is directly tied to earnings per share requirements and the cash infusion will primarily be used for capital expenditures and to a lesser extent, operating capital. Currently, Payless did $5 million in annual sales, for the 12 months ended December 31, 1997. At present, it has 32,000 customers and is expanding at a rate of 3,000 new customers per week. Annual revenues are expected to increase to approximately $20 million by the end of the fiscal year. This profitable growth will be accomplished through the technical efforts of its approximately 100 in-house sales and customer service force, backed by the addition of DCI's corporate resources. Payless offers rates that are competitive in domestic and international markets. The rates can save users up to 75% of the costs associated with using calling cards. Thanks to outstanding customer service and competitive rates, Payless manages to achieve a 90% customer retention rate. Payless' calling card platform enables it to control call processing and customer service. The platform has other features that allow cross marketing and other horizontal marketing opportunities such as selling prepaid calling cards into convenience stores and contracting with long distance and local carriers to provide each with access to a workable platform with low rates. DCI recently announced the signing of an agreement with Telefonica de Espana allowing it to establish a telecommunications network that will greatly reduce the cost of long distance telephone services throughout Southern Spain. DCI Telecommunications is an international supplier of telephone services, including long distance service, prepaid telephone cards and Internet products. The company has an extensive distribution network throughout North America, Europe and the Far East and owns telephone switching facilities in Canada, the United Kingdom, Spain and Denmark. The company recently reported sales of $6.2 million and $1.3 million in profit (13 cents per share), for the first nine months of fiscal 1998, and has 12 operating facilities, serving customers in eight countries. Safe Harbor Statement under the Private Securities Litigation Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the new uncertainty of future financial results, additional financing requirements, development of new products, regulatory approval processes, the impact of competitive products or pricing, unpredictability of patent protection, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission. SOURCE DCI Telecommunications /CONTACT: Craig K. Murphy, Director, Investor Relations of DCI Telecommunications, 203-380-0910, ext. 301, or dcitel@aol.com/ /Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 107358/ /Web site: dcic.com (DCTC)