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Technology Stocks : Voice-on-the-net (VON), VoIP, Internet (IP) Telephony -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (1161)	8/24/1998 2:47:00 PM
From: Frank A. Coluccio	Read Replies (1) \| Respond to of 3178

NeTrue/ GST Global Telecommunications Finalizes Acquisition of VoIP Company: NeTrue AUG 24,1998 10:17 EASTERN VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 24, 1998--GST Global (VSE:GGB.) GST Global Telecommunications Inc. ("Global", VSE:GGB) is pleased to announce that it has completed the acquisition of a 51 percent equity interest in NeTrue Communications, Inc. The terms of the acquisition include payment totaling US $4,500,000 to be made to NeTrue in three installments for the 51 percent interest plus a purchase commitment of US $1,000,000 over the next twelve months for IP telephony equipment manufactured by NeTrue. In conjunction with the acquisition, Global will also have four seats on the seven-man NeTrue Board of Directors. Dr. Tom Sawyer, a Director of Global, will become Chairman of the Board of NeTrue. The acquisition of NeTrue is a major step in advancing Global's strategy of providing leading edge technology. Both the IP telephony equipment and the proprietary IP network management system developed by NeTrue will be significant elements in positioning Global as a primary supplier of Internet telephony services to international markets. Global's focus on business opportunities in Internet telephony will be substantially strengthened by the addition of NeTrue's existing market position, engineering expertise and product innovation capabilities. Commenting on the acquisition, Dr. Sawyer stated, "I am tremendously excited to be associated with NeTrue's technical team and advanced IP telephony products, and look forward to combining the international marketing and financial strengths of Global with the technical strengths of NeTrue to create a leading IP telephony services company." In addition to its headquarters in Fullerton, California, NeTrue has four engineering, marketing, and service centers in China located in Shanghai, Hangzhou, Beijing and Hong Kong. Global believes that by leveraging NeTrue's relationships and experience in China, significant opportunities exist to deploy NeTrue equipment and to deliver IP telephony services in China and Asia. GST Global is a telecommunications company based in Vancouver, B.C. with joint venture interests in Europe through Axxon Telecom B.V., a switch-based long distance reseller, and in Mexico through Bestel, S.A. de C.V., a facilities-based long distance concessionaire currently completing the construction of a 2,270 kilometer fibre optic network in Mexico. GST Global also owns a controlling interest in Highpoint Telecommunications, Inc. (HGP:ASE) which operates telecommunications networks specializing in voice, data, and Internet carrier services internationally. --30--clg/cgo* CONTACT: GST Global Telecommunications Inc. Robert Blankstein or Kelly Taillon, 604/609-6677 or 1-888-234-4423 www.ggbtelecom.com KEYWORD: NEW YORK INDUSTRY KEYWORD: TELECOMMUNICATIONS MERGERS/ACQ