PT-1 Communications Signs Exclusive $170 Million 3-Year Distribution Agreement for PT-1 Millionaire Phonecard
FLUSHING, N.Y.--(BUSINESS WIRE)--Feb. 12, 1999--PT-1 Communications, Inc., a subsidiary of STAR Telecommunications Inc. (Nasdaq:STRX - news) and the nation's largest prepaid calling card provider, today announced that it has signed a $170 million, 3-year exclusive distribution agreement with Harold Levinson Associates, Inc. (HLA), a distributor of tobacco, grocery and confectionery products with annual sales exceeding $500 million, to distribute its New York Millionaire Phonecard.
PT-1 recently launched the New York Millionaire Phonecard program, which gives calling card users the opportunity to win free long distance minutes and enter a $1 million grand prize drawing.
''After performing extensive research of the calling card marketplace, we have concluded that PT-1 is not only the most widely recognized brand among consumers and retailers, but is the most reliable and best selling brand as well,'' commented Barry Feldman, Executive Vice President of HLA. ''We believe this partnership of two premier companies in their respective fields will enhance the growth of both entities. Beginning in March, 1999 we expect to distribute the PT-1 product in over 10,000 retail locations in the New York area.''
The terms of the agreement call for HLA to exclusively distribute PT-1 brand calling cards at HLA distribution points. HLA will purchase approximately $170 million of PT-1 prepaid calling cards over the next three years.
''We are extremely excited about the partnership with HLA and the release of our new PT-1 New York Millionaire Phonecard program,'' said Chris Edgecomb, Chairman and CEO of STAR. ''This calling card provides competitive long distance rates to the consumer and affords them the opportunity to instantly win PT-1 New York Millionaire Phonecards of equal denomination. PT-1 continues to lead the sector with innovative long distance marketing programs.''
About PT-1 Communications
PT-1 Communications, Inc., a wholly-owned subsidiary of STAR Telecommunications, Inc. (Nasdaq:STRX - news), is the nation's largest provider of prepaid calling cards. PT-1's recent merger with STAR Telecommunications has created the seventh largest long distance provider in the United States. PT-1 focuses on the international long distance marketplace, which accounts for approximately 70% of all prepaid calling card revenues. With the most widely recognized brands, PT-1 has the top selling line of phone cards in America. PT-1 is also a leading provider of dial around services under the 101-6868 program.
About Harold Levinson Associates, Inc.
Harold Levinson Associates, Inc., a 25-year-old distributor of tobacco, grocery and confectionery products with annual sales exceeding $500 million, operates a 250,000 square foot warehousing, shipping and distribution facility in Hicksville, New York. HLA is one of the largest distributors in the United States and the third largest privately held company on Long Island (based on revenue). HLA distributes to newsstands, convenience stores and major chain stores in the New York area.
Except for the historical information contained herein, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. The Company's future actual results could differ materially from the forward-looking statements discussed herein. A list of the factors that could cause actual results to differ materially can be found in the documents the Company files with the SEC, including those contained in STAR's prospectus, and the Form 10-Q for the period ended September 30, 1998.
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Contact:
STAR Telecommunications Inc.
Kelly Enos, CFO or Ben Helvey, IR, 805/899-1962
or
Morgen-Walke Associates
Todd Friedman, Jennifer Jarman, 415/296-7383 |
