Friday June 12, 8:31 am Eastern Time
Company Press Release
Franklin Telecom's FNet Acquires NATO Network in Bosnia
Service Will Expand to Include Commercial Traffic
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--June 12, 1998-- Franklin
Telecom (OTC:FTEL - news) 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 Kuyendall 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 [NYSE:HRS - news] 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 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 Franklin Telecom
The primary business of Franklin Telecom (OTC:FTEL - news) founded in
1981, is the design and manufacturing of communications devices, high
speed LAN, WAN, Telco & Satellite Systems and software. Franklin has an
installed base of over 100,000 nodes worldwide.
About FNet Corp.
FNet Corp., founded in 1996, is a subsidiary of Franklin Telecom. FNet
Corp. is an international next generation telephone company that is at
the forefront of the emerging Voice over IP Network market. Utilizing
hardware manufactured by Franklin Telecom, FNet is building a global
telephone network through partnerships that will allow toll quality
phone-to-phone calls over the Internet that meet the special
requirements of its corporate and professional customers.
Certain statements in this press release constitute ''forward-looking
statements'' within 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 which may cause the actual results,
performance, or achievements of the Company to be materially different
from any future results, performance or achievements, expressed or
implied by such forward-looking statements.
------------------------------------------------------------------------
Contact:
Franklin Telecom
Shareholder Relations:
Helen West, 805/373-8688
hwest@ftel.net
Marketing Contact:
Diane McCarthy, 805/373-8688
dianemc@ftel.net
or
Rourke MS&L
Media Contact:
Tiffany Hilton, 408/453-9194
thilton@rourkemsl.com |
