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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: JOE MEDSKER who wrote (9052)	10/6/1998 2:03:00 PM
From: Art Vandelay	Read Replies (2) \| Respond to of 19331

All, Some new Q&A (mixed in with some old) Does the new contract with Latin Debit Technologies, Inc. (LDTI) put Edge Communications over the $100 million mark? Without the new contract, Edge Communications is currently operating a $40 million + run rate. Therefore, with this contract, revenues should be close to $100 million. Will an 8-K be filed for the LDTI contract? Yes, it will be filed shortly. Apparently, DCI will reach its stated goal of $100 million. Will the Company continue to expand by acquisition? The Company is in the process of "rethinking" its acquisition strategy or growth by external expansion. It currently has a "full plate" internally, and must cultivate that growth. This is a pleasant surprise at this junction of our history. Our revenues per share growth will be more dramatic emphasizing internal growth. When are we expected to see revenues and earnings from the joint venture with TIMEWorldcom? Since the definitive agreement was signed in late August, the integration process is currently underway. Therefore, it should begin to contribute in the quarter ending December 31, 1998. Who is Cristina Mosca? The sale of tobacco products in Italy is regulated by a closely-knit association network that is responsible for the licensing of individual shop owners throughout Italy. One cannot sell tobacco products without a permit from this monopolistic association. Cristina Mosca is president of the association of tobacco vendors for the district of Thiene/Vincenza, her home town. She also sits on the Board of Directors of the master association. I believe Charles Zwebner is now with a company called VideoCall which did a reverse merger with a listed company called Legacy Software (NASDAQ: LGCY). Can you confirm that? That may be, but since Mr. Zwebner is no longer an employee of DCI Telecommunications or one of its subsidiaries, you will need to confirm that information on your own. Who is Alexander H. Walker, Jr.? Alexander H. Walker is the Chairman of the Board and General Counsel for the Nevada Agency & Trust Company. There is an item in the Annual Report entitled "Due to Shareholders" - could you explain? Note 12 (Related Party Transactions) does not go into the details of the aforementioned question. With the approval of the Board of Directors, Mr. and Mrs. Murphy sold shares in private transactions in March and June of 1997, the proceeds of which were put back into DCI. These proceeds were specifically earmarked for CardCall companies. These transactions were fully reported to the Securities and Exchange Commission via 10Q, 10K, and 144 filings which can be verified through DCI's EDGAR filings (click on stock quote on our home page from there you will see a link to "Insider"). In a recent press release you stated "DCI management is prepared to take the necessary action to maintain its present growth strategies." Does this mean you will step up and buy back shares? Earlier in the year, DCI stepped in and announced a stock repurchase program. In April 1998, DCI acquired Edge Communications under a "pooling of interest" basis. Under GAAP, in order to maintain the pooling basis, the Company had to stop its program. Currently, management is exploring other strategies that will allow us to take advantage of this investment without upsetting the pooling basis. Once finalized, we intend to move rapidly. What types of cost reduction is DCI doing? In Canada, the Toronto office was closed, eliminating a facility and its personnel. All functions are now handled out of Vancouver. In addition, management is analyzing the benefits that can be gained from further consolidation. In Europe, management is contemplating the relocation of the Denmark switch to Italy as well as relocating the London switch to Spain. The potential benefit would be a dramatic reduction in costs. These moves may also enable a smoother transition with the new contracts. What do you intend to do with the Series F convertible preferred? There is a "buy back" provision in the agreement and after certain events occur, we intend to exercise it. Is DCI involved in the class action suit brought against SmarTalk? Yes. In addition, we have also sued SmarTalk for short-changing us on the number of shares they should have delivered to us at the closing. Did the rule changes applicable to Regulation S have an effect on the former CardCall International shareholders who exercised their options? It was and still is the Company's position that the changes to Regulation S affected the holding period for those individuals exercising options after April 27, 1998. The holding period was changed from 40 days to one year. DCI's attorneys issued a legal opinion so stating its position to the transfer agent. Claiming possession of an adverse opinion, the transfer agent removed the legends from some of the certificates. These actions took place during July and August of 1998. Do you ever advertise your products? Absolutely. Edge Communications, for example, has full page ads in Intele-Card News magazine. If anyone is interested in purchasing prepaid phone cards or prepaid beepers they can call 800 605-2267. We are also in the process of allowing products to be purchased directly from the web site. How long has the management team been together? DCI's management team has been together for decades (literally). Four members of DCI's top management have been together through three companies. While with those companies, they developed a reputation for achieving record-breaking revenue and earnings growth. Why has our stock fallen since July 31, 1998, especially on such good news lately? There has been a great deal of speculation regarding certain former CardCall shareholders "selling off" their position. If it was just them that would be one thing, but in the words of Byron Wien, head US equity strategist at Morgan Stanley Dean Witter, "The market hadn't readily adjusted in price to reflect all the negatives out there, and now there's a new wave of negatives as we see financial demons appearing everywhere."