Portnoy's Complaint, part II:"USA TALKS.COM PROMISES COOPERATION WITH SEC TO END TRADING HALT
2/1/99 6:15
LA JOLLA, Calif., Feb. 1 /PRNewswire/ -- USA Talks.com, Inc.
(OTC Bulletin Board: USAT) today confirmed the action of the Securities and
Exchange Commission to halt over-the-counter trading of its Common Stock
through February 11, 1999, and promised full cooperation with the SEC to
enable trading to resume as promptly as possible. The Company denied that
there was any basis for the SEC action, of which it had no advance warning,
and further denied any relationship with or knowledge of the other five
companies which were the subject of similar SEC action. The other five
companies were named in a recent report by MSNBC columnist Christopher Byron,
which was erroneously represented in the press as providing a connection
between those companies and USA Talks.com.
Allen Portnoy, Chief Executive Officer, commented: "We understand that the
SEC is rightfully concerned with companies which misrepresent the existence
and extent of Internet-based businesses to stimulate trading in their stock.
USA Talks has an operating California network representing the first Internet
phone long-distance service offered on a flat-rate-per-month basis, and the
existence and quality of our service can be demonstrated easily to the SEC and
others. We can also substantiate the data in our prior press releases and the
current status of USA Talks' nationwide network. USA Talks has provided
service for over 235,000 calls since the installation of the California
network. We were never mentioned in the MSNBC report, and it is unfortunate
that we were erroneously linked with those companies which were the subject of
Christopher Byron's story." As for a threatened class action lawsuit, which
was announced in the press, Mr. Portnoy added: "Undoubtedly, this was based
solely on the SEC trading halt and no other facts. When we satisfy the SEC,
that matter should resolve itself."
USA Talks.com offers a flat rate, "all you can talk," telephone-to-
telephone, "toll quality" long distance service with a variety of service and
pricing plans from $20 to $60 per month. The long distance service is
designed to meet the needs of residential and business target markets.
Headquartered in La Jolla, California, USA Talks.com, Inc. is building the
first national Internet -- based long distance telephone service to offer
unlimited use for a monthly flat fee. USA Talks.com's proprietary
technologies allow telephone to telephone calls using simple fast call
placement. These technologies include speech recognition, speech
verification, and speech compression, which aid in security and ease of use.
USA Talks' long distance service is marketed through TrendMark, Inc., a direct
marketing company based in Memphis, Tennessee, Unlimited Long Distance, Inc.,
a Nevada based telemarketing management company, and through USA Talk's
wholesale and resellers division located in San Diego.
This press release contains forward-looking statements relating to future
operating information and their impact on future results. Actual results
could differ materially from those projected in forward looking statements as
a result of risk factors such as market conditions, product life cycles,
customer delays in purchasing products, technology shifts, potential
difficulties in introducing new products, competition, price sensitivity and
the uncertain market acceptance of the Company's products by distributors,
retailers and customers.
SOURCE USA Talks.com, Inc.
-0- 02/01/99
/CONTACT: Maggie Yates, Director of Marketing, 619-546-0550,
myates@usatalks.com, or Lesley Wilber, Director of Investor Relations,
619-546-0550, lesleyw@usatalks.com, both of USA Talks.com, Inc.; or Peggy
Lanier, 619-546-0550, planier@home.com, for USA Talks.com, Inc./
(USAT)"
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