Risk: The newsletter from last friday:
Hello,
And welcome to another of Digitcom's "every once in a while" information
updates.ÿ In this issue you'll find:
ÿÿ - A Message from the Chairman - Jimmy Chin expands on recent news.
ÿÿ - Market Listing Update - Moving toward Small Cap
ÿÿ - Investors in the News - the media looks at Digitcom's active,
online investors
ÿÿ - A Note On Investor Relations
ÿÿ - A Personal Message from Roger Templeton
**************************************
== A Message from Jimmy Chin, CEO ==
The past month -- since my last Digitcom Investor News letter -- has
been a good one for Digitcom.ÿ We were introduced to Siegfried
Lietzmann, Managing Director of Lietzmann & Partner of Potsdam,
Germany.ÿ He was invaluable in organizing our plans for a European
presence and turning them into a proposal for financing that is
available for "projects of economy-related infrastructure" in
Brandenburg.ÿ The German government is targeting investment in the new
federal states of the former East Germany.ÿ Their intention is to
increase employment and modernize infrastructure by providing incentive
funding for new or expanding enterprises.ÿ The financial supports come
from both governmental and private sources on very favorable terms.
Lietzmann & Partner has been able to secure preliminary approval of
Digitcom's $25 Million (US) proposed data network and switch facility in
Potsdam.ÿ While there are many steps to be taken yet, we're very
encouraged by the prospect of locating our VoIP/Network
point-of-presence in the Berlin area and extending data network
infrastructure throughout the "new states".ÿ This could develop into an
important gateway for the Digitcom Network in Germany and to Russia in
the near-term, and eventually, the rest of Europe.
Also, my trip to the Middle East this month resulted in our association
with WKG, United Arab Emirates.ÿ Digitcom will soon open an office in
Abu Dhabi which will serve as the Digitcom/WKG joint venture company's
regional headquarters.ÿ Both our planned international long distance
telephony and data network services for the region will be co-ordinated
from there.ÿ Discussions I had there, Saudi Arabia, and in Egypt lead me
to be optimistic about Digitcom's future in the region.
This month has seen some favorable major-media attention to the "online"
followers of the Company's stock, and I'd like to thank Larry and Evan
of The Launching Pad, and Dr. Byron Glenn for planting the seeds that
grew into a WSJ-IE article.
I'm aware that the past month has also seen some negative
rumor-mongering among the online investor community.ÿ It's my belief
that doing what we're doing, and building value in the Company will be
the most effective response Digitcom can make to innuendo and rumor.
Read on, and get the flavor of how we're doing.
ÿÿÿÿÿ - Jimmy Chin, CEO
________________________________________
== Market Listing Update ==
The Company completed its drafting of a form 10-SB filing by the last
week of May.ÿ This was a "due-date" that Roger Templeton, our Corporate
Communications VP targeted in his online "chat" of May 13th in full
confidence that the Company's legal review and the coding for electronic
submission would follow in a few day's time.ÿ He was wrong, and has some
comments regarding the matter below.ÿ Because there is substantial
interest in the process, we'll take this opportunity to bring you up to
date.
The filing is currently under review by the Company's counsel, Cohen,
Brame & Smith.ÿ They are familiar with Digitcom, having previously
worked with the Company, and are devoted to making our filing as strong
as possible.ÿ To that end, they have returned their own comments and
suggestions, and with the usual give-and-take, these are being
incorporated in a revised draft.ÿ Most significantly, in terms of the
time of submission, is their suggestion that the Company file after 2nd
Quarter '98 financial results are compiled and can be made part of the
filing.
There are two principal reasons that Management agrees that holding off
to include 2nd Quarter results is the right course to take.ÿ First,
filing within days of the end of the quarter would undoubtedly result in
the Commission--days or weeks into their review--asking for the most
recent Quarter's financial results, putting their review on hold until
they are provided.ÿ Therefore, no time would be saved by filing early
and amending it later.ÿ The second reason is more technical, but the
consensus between Management and our Securities counsel is that the
"Management's Discussion and Analysis" (MD&A) will be strengthened with
the satisfaction of certain "Notes receivable" due at the end of the 2nd
Quarter.ÿ With this done, we expect the usual Q&A exchange to be less
than it would otherwise be.
Cohen, Brame & Smith are handling our filing with all the dispatch that
prudence allows.ÿ They have much of the material already electronically
coded and on file, so there should be no delay once the data is
complete.ÿ Digitcom is looking forward to moving onto fully-reporting
status as quickly as commonsense business judgment dictates.
________________________________________
== Investors in the News ==
The Company's vibrant community of online investors caught the attention
of The Wall Street Journal Interactive Edition in their June 9, 1998
edition.ÿ Under the headline, "Digitcom Caters to Its Fans On Internet
Message Boards," reporter Carrie Lee took a look at the phenomenon in
the WSJ-IE "Money & Investing" section.ÿ She noted the nearly 20,000
postings have been made since February to message boards on the Silicon
Investor Web site and on Yahoo!ÿ Her archived article can be found at
<http://interactive.wsj.com/> (paid subscription is required).
________________________________________
== A Note About Investor Relations ==
Liberty Capital Group, Inc. no longer represents Digitcom Interactive
Video Network.ÿ Liberty provided valuable and professional Investor
Relations services to Digitcom through the end of May of this year.ÿ We
thank them for their efforts and wish them the best in their future
endeavors.
Inquiries may still be directed to WorldVision Financial at (888) 345
6060, toll free, or through their Web site at <http://www.wvfg.com>.
________________________________________
== A Personal Message from Roger Templeton ==
I learned a valuable lesson over these past few weeks:ÿ "Don't promise a
future you don't control."ÿ Apart from the obviousness of that lesson,
I've learned just how important the expectations produced by my words
are to the smooth functioning of our organization and to the good faith
of our stockholders.
In my "chat session" with interested investors on May 13th I predicted
that Digitcom would be filing a form 10-SB by the first of June.ÿ In
making that prediction I was making a couple of assumptions that, in
hindsight, look more like a mixture of enthusiasm with a dash of hubris
than a careful, professional judgment.ÿ As a result, an absolutely
un-necessary injury to the trust with which those investors approach the
Company may have occurred.
For this, I take personal responsibility.ÿ And, I make my apology.
While I may make another mistake again in my life, I will do my best to
not make this one again.
ÿÿ - Roger Templeton
*********************************
This edition of Digitcom Investor News will be available in a Web
version that is exclusive to subscribers of Digitcom Investor News:
<http://div-n.digitcom.com/html/newsletter_pages.html>
The Small Print:
This release of "Digitcom Investor News" includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities and Exchange Act of
1934, as amended. All statements other than statements of historical
fact included in this release, including without limitation, Digitcom's
business strategy, plans and objectives, are forward-looking statements.
Although Digitcom believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that
such expectations will prove to be correct. Factors that could cause
actual results to differ materially from Digitcom's expectations
include, without limitation, Digitcom's ability to negotiate final terms
of the transactions described on favorable terms, if at all, and general
economic and competitive factors.
-------------------------------------------------------
| For the complete story on Digitcom Corporation, go
| to our Website at:
| <http://www.digitcom.com>
|
| Address your comments and questions to:
| <info@digitcom.com>
| To remove yourself from this email newsletter,
| put "UNSUBSCRIBE" in the Subject line of an email
| addressed to "info@digitcom.com".
-------------------------------------------------------
copyright 1998 by Digitcom Interactive Video Network
|
