To: Seth L. who wrote (38140 ) 9/29/1998 2:28:00 AM From: William Harvey Respond to
From the 10K:During April 1998, FNet entered into a joint venture with LibertyOne Limited, an Australian limited liability corporation that provides project management services and marketing and sales of telecommunications services in New Zealand. The joint venture is to provide voice and data communications through a FNet network to customers in New Zealand, Australia, Asia, and the South Pacific. The joint venture is for an initial term of five years with an option to extend at the expiration date. As of June 30, 1998, the joint venture had not commenced operations. During June 1998, FNet entered into a joint venture agreement with Megaburst, Inc. to operate an 11-site satellite telephone network in Bosnia used by NATO troops. The joint venture will operate a network that was purchased by Megaburst, Inc. from a third party for $150,000. FNet advanced funds to Megaburst, Inc. for the purchase of the assets. Megaburst, Inc. will subsequently transfer the assets to FNet. During June 1998, FNet purchased all of the assets of LDNet, Inc. for $20,000. These assets consisted of equipment. two Tempests.Bottom line: (4,964,000) for the year and (1,764,000) for the quarter.
