Franklin Telecom's FNet Acquires NATO Network in Bosnia
OTCBB FTEL
For Immediate Release
June 12, 1998
Franklin Telecom's FNet Acquires NATO Network in Bosnia
Service Will Expand to Include Commercial Traffic
Westlake Village, CA, June 12, 1998 -- Franklin Telecom (OTC: FTEL) today announced that FNet Corp., its next generation telephone company, has purchased and will operate an 11-site satellite telephone
network used by NATO troops stationed throughout Bosnia.
FNet president Kevin Kuykendall said,."The purchase of NATO's former telephone network represents significant firsts for our company. It's our first overseas acquisition and its the first in-place telephone
network we've bought, rather than built from the ground up. More importantly, it shows we're sticking to
our strategy of growing the FNet network in a variety of ways so that by the end of the year, we'll be adding approximately ten countries a month to the next generation telephone company we're building."
Last month, FNet announced a joint venture with LibertyOne to implement voice over IP in Australia and New Zealand which will ultimately connect to the world via the FNet network starting late this summer.
FNet has announced plans to deploy its network, which utilizes both voice over IP and traditional off-net switching capability, in at least 50 countries within 24 months, including 50 on-net cities up and running by the end of this year.
FNet purchased the Bosnia equipment from Harris Telecommunications Systems for an undisclosed amount and will operate the network with Virginia-based Megaburst Inc., a company specializing in engineering development for technology companies throughout the US and Europe.
The stations and equipment were installed in Bosnia to facilitate calls exclusively for NATO troops stationed there from a number of countries, including France, Great Britain, Germany, Italy and the
United States. The network now produces revenue in excess of $100,000 per month, according to E.Rocque Kramer, CEO and President of Megaburst, who worked with Harris Corporation in establishing
the service.
According to Kramer, "Having been involved with this project from its inception, I am pleased to be able to work with Franklin in taking this network to the next level. With peace returning to the region, the area is primed for explosive economic growth. The time is right to introduce this enabling technology not only to the budding enterprises of this former Olympic region but also to the world-wide agencies located there.
While we will maintain our NATO customer base our expansion plans will soon make our services available to include commercial traffic, like the banking and European industries in general. This will also
allow agencies of the E.U. to obtain reliable and less costly telecommunications with their out-of-country headquarters. Because of this extension of our services, we anticipate a rapid rise in revenues."
Under the partnership agreement, Megaburst will be responsible for sales, marketing and in-country support, while FNet will operate the network and oversee billing, using its Tempest System, the only
gateway product with an integrated proprietary tracking and invoicing capability. FNet will assume operational responsibility on July 1.
About Megaburst
Megaburst Inc., is a Delaware Corp. specializing in engineering and development for U.S and European technology companies, will be active in the coordination of the activities in the Balkans through its
association with NATO command organizations and other non-government organizations.
About FNet Corp.:
FNet Corp., founded in 1996, is a subsidiary of Franklin Telecommunications Corp. (OTC: FTEL), a
designer and manufacturer of communicastions devices and software with more than 100,000 nodes
worldwide. FNet Corp. is an international Internet telephone service company that focuses on the special
requirements of corporate and professional customers and is at the forefront of the emerging Voice over
IP Network market, utilizing hardware manufactured by Franklin Telecom to offer a unique vertically
integrated solution.
The primary business of Franklin Telecom (OTC: FTEL), founded in 1981, is the design and manufacturing of communications devices, high speed LAN,
WAN, Telco and Satellite Systems and software. Franklin has an installed base of over 100,000 nodes worldwide. Franklin's Internet subsidiaries, FNet and
Internet Passport provide services using FTEL products.
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Certain statements in this news release constitute "forward-looking statements" with the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that many cause
the actual results, performance or achievements, express and implied by such forward-looking statements.
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