Coyote Network Systems Extends Advanced Technology Base; Acquires ControllingInterest in Systeam S.p.A.
Software Developer Enables Voice, Data, Video and Internet Solutions
for Wireline, Wireless, Cable TV and Internet Services
WESTLAKE VILLAGE, Calif., Feb. 10 /PRNewswire/ -- Coyote Network Systems
(Nasdaq: CYOE) today announced it has signed a definitive agreement to acquire
controlling interest in Systeam S.p.A., by increasing its equity position to
60% from 9%, for approximately $5 million and 880,000 unregistered shares of
Coyote common stock. The transaction is subject to various, customary closing
conditions. Based in Rome, Italy, Systeam develops voice, data, video and
Internet solutions.
"Coyote is committed to leading edge technologies that provide our
customers and our company with a competitive advantage. Systeam brings
expertise in telecom, multimedia and Internet, relationships with European
PTTs, and complements Coyote's strategy to deliver advanced technology and
international long distance solutions," said James J. Fiedler, chairman and
CEO, Coyote Network Systems. "With European telecom markets in the early
stages of privatization, Systeam is well-positioned to capitalize on that
growth and can expand the markets for Coyote products."
Since 1989, Systeam has been serving European government entities and
companies and is a leading developer of specialized information technologies,
including anti-fraud/anti-cloning cellular software that can control and
verify more than 30 million telephone calls daily; Netstrobe, an SNMP-based
Internet network management system; Internet advertising software that
delivers non-scrollable frame messages with audio and video capabilities;
Digital Videostore and Video Storm based on Digital Versatile Disc (DVD)
technology which is used to archive and store visual information in a digital
format. Systeam customers include Telecom Italia, Siemens, Ericsson, Stream,
Telesoft and Saritel.
"New carrier services, evolving technologies and the Internet mark today's
telecom industry. Our relationship with Coyote will enable us to market
integrated advanced technology solutions that deliver competitive advantages
to our customers," said Nicola DiTomaso, president, Systeam S.p.A. "With
Coyote we will now be able to offer integrated solutions on a worldwide
basis."
Smartech S.r.l.
As part of the Systeam acquisition, Coyote also will acquire an indirect
controlling interest in Smartech, an information technology-consulting firm
that provides software solutions for telecom, financial service and utility
companies. Smartech is 51% owned by Systeam.
About Systeam S.p.A.
Based in Rome-Italy, Systeam S.p.A. provides software and hardware
solutions that enable voice, data, video and Internet solutions for wireline,
wireless, cable TV and Internet services. Since 1989, Systeam has been serving
European government entities and companies and is a leading developer of
specialized information technologies, including anti-fraud cellular software,
IP-based Internet network management system, Internet advertising solutions,
and Digital Versatile Disc (DVD)-based technology used to archive and store
information in a digital format. Systeam customers include Telecom Italia,
Siemens, Ericsson, Stream, Telesoft and Saritel. For more information, please
visit the Company's Web site: systeam.it, or call
(011) 39 06 5077031.
Apollo Telecom Acquisition
In a related announcement, Coyote today said it has signed a definitive
agreement to acquire Apollo Telecom, an emerging long distance provider, for
approximately 350,000 unregistered shares of Coyote common stock.
About Coyote Network Systems
Headquartered in Westlake Village, CA, Coyote Network Systems
(Nasdaq: CYOE) provides telecom equipment and international long distance
services. Coyote Technologies provides scalable Class 4/5 telecom switches
and IP (Internet Protocol) gateway systems. Headquartered in Houston, TX,
American Gateway Telecommunications provides international long distance
services to carriers. Headquartered in Los Angeles, CA, Interactive Network
Systems markets international long distance services, primarily to affinity
groups. Coyote also recently formed a joint venture-TelecomAlliance-designed
to enhance the growth of up to 30 switchless resellers. TelecomAlliance will
manage a new IP-based network that combines voice and data services, as well
as backroom services, such as billing, customer service and service
provisioning. Coyote is authorized to provide competitive local exchange
carrier services in California. For more information, please visit the
Company's Web site: cyoe.com, or call 1-818-735-5385.
The statements in this news release may be considered "forward looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and involve known and unknown risks and uncertainties, which may cause
the Company's actual results in future periods to be materially different from
any future performance suggested in this news release. Readers are cautioned
not to place undue reliance on these forward-looking statements that speak
only as of the date hereof. For more complete information, please refer to
the Company's Form 10-K, Form 10-Q and other filings with the SEC.
SOURCE Coyote Network Systems
CO: Coyote Network Systems; Systeam S.p.A.; Smartech S.r.l.; Apollo Telecom,
Inc.
ST: California, Italy
IN: MLM TLS
SU: TNM
02/10/99 10:00 EST prnewswire.com
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