Dear Investor to Investor readers:
We have some news on DCI Telecommunications and Wavetech International! A
stock swap deal separate from the merger stock swap that will take place after
the SEC approval for the merger. It looks like both companies are champing at
the bit to get started and have increased their ties for the near term. DCI
will have ownership of almost 20% of Wavetech before the merger goes through,
while Wavetech will hold about 2% or DCI shares. So even if there were delays
(not to say they are anticipated, but the SEC does seem to work within its own
time schedule) in the merger, both companies can start working on their joint
initiatives right away. There promises to be a lot interesting developments
coming out of this.
Kathy Knight-McConnell
Investor to Investor
investortoinvestor.com
DCI Telecommunications and Wavetech International Announce Stock Swap
STRATFORD, Conn., March 2 /PRNewswire/ -- DCI Telecommunications, Inc. (OTC
Bulletin Board: DCTC - news) announced today that its Board of Directors has
approved the exchange of 576,047 shares of its common stock, equating to
approximately 2% of its existing shares outstanding, for 568,846 common shares
of Wavetech International (Nasdaq: ITEL - news) that represents approximately
19.9% of its current outstanding shares.
Joseph J. Murphy, president & CEO of DCI stated, ''This stake out position is
rendered, in advance of completing the previously announced merger between DCI
and Wavetech, to take advantage of certain business opportunities in which our
businesses have real synergy and in order to reaffirm our commitment to
increasing value to the shareholders of both companies.'' Completion of the
merger itself is subject to, among other conditions, approval of both
companies' shareholders and The Nasdaq Stock Market, Inc.
The companies are also in the planning stages of a number of other joint
initiatives, including deployment of DCI resources to ''jump start'' the
operation and distribution of Wavetech's existing and new products.
DCI recently announced it will begin operating as a Competitive Local Exchange
Carrier (CLEC) throughout Spain as a result of an agreement with Retevision.
The agreement allows DCI to offer its telecommunications services utilizing
Retevision's Government license as a CLEC. In effect, DCI will become an
alternative local carrier to Telefonica de Espana. DCI customers will be able
to place phone calls anywhere within Spain at competitive, and in some cases,
significantly lower rates than currently obtainable from the other carriers.
Retevision, based in Madrid, is the national cable television service provider
in Spain and has the capability to provide service throughout the country. By
establishing a network of wireless transmission facilities, over which its
signal can be broadcast countrywide, it has implemented a creative solution to
the costly process of running wire across the mountainous topography which is
prevalent throughout much of Spain. Retevision's wireless network has been
modified to allow DCI to seamlessly transmit its telecommunications services.
Currently, Retevision is installing wireless transmission equipment within
DCI's new Madrid office.
DCl has been building its infrastructure in Spain, over the past year, to be
in a position to take advantage of deregulation. DCI has been targeting Spain
as an integral part of its European expansion plan, as the opportunity for
market growth and profit potential is great within this region. With a
population of more than 39 million, Spain also attracts more than 40 million
annual tourists. The current annual telecommunications market in Spain is
nearly $10 billion. DCI is anticipating annual traffic in excess of $100
million for its CLEC business in Spain.
While significant, this release does not constitute an end to the Company's
quiet period which was announced on December 18, 1998.
DCI Telecommunications is a global provider of telecommunications services,
including long distance, prepaid phone cards and Internet services. It has an
extensive distribution network throughout North America, Europe and the Far
East. The Company owns and operates switching facilities in Canada, the United
Kingdom, Spain and Denmark, with facilities planned for the United States in
the near future. There are currently 10 operating facilities worldwide,
serving customers in eight countries. DCI recently reported sales of $28.1
million for the nine months ended December 31, 1998 versus $8 million in the
comparable prior-year period. DCI trades on the OTC Bulletin Board under the
symbol DCTC. Additional information can be obtained directly from the company
or its web site at dcic.com.
Safe Harbor Statement under the Private Securities Litigation Act of 1995: The
statements which are not historical facts contained in this press release are
forward-looking statements that involve certain risks and uncertainties
including but not limited to risks associated with the new uncertainty of
future financial results, additional financing requirements, development of
new products, regulatory approval processes, the impact of competitive
products or pricing, unpredictability of patent protection, technological
changes, the effect of economic conditions and other uncertainties detailed in
the company's filings with the Securities and Exchange Commission.
SOURCE: DCI Telecommunications, Inc.
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Here is the other side of the coin:
Wavetech International and DCI Telecommunications Announce Stock Swap
TUCSON, Ariz., March 2 /PRNewswire/ -- Wavetech International, Inc.(Nasdaq:
ITEL - news) announced today that its Board of Directors has approved the
exchange of 568,846 shares of its common stock, equating to approximately
19.9% of its existing shares outstanding, for 576,047 common shares of DCI
Telecommunications, Inc. (OTC Bulletin Board: DCTC - news) that represents
approximately 2% of its current outstanding shares.
Gerald I. Quinn, President & CEO of Wavetech said, ''we are doing this in
advance of completing the previously announced merger between Wavetech and
DCI, to take advantage of certain synergistic business opportunities and in
order to reaffirm our commitment to increasing value to shareholders of both
companies.'' Completion of the merger itself is subject to, among other
conditions, approval of both companies' shareholders and The Nasdaq Stock
Market, Inc.
As part of the stock swap, DCI and Wavetech will each have the right to
designate one member to the Board of Directors of the other company.
The companies are also in the planning stages of a number of other joint
initiatives, including deployment of DCI resources to ''jump start'' the
operation and distribution of Wavetech's existing and new products.
DCI Telecommunications is a global provider of telecommunications services,
including long distance, prepaid phone cards and Internet services. It has an
extensive distribution network throughout North America, Europe and the Far
East. The Company owns and operates switching facilities in Canada, the United
Kingdom, Spain and Denmark, with facilities planned for the United States in
the near future. There are currently 10 operating facilities worldwide,
serving customers in eight countries. DCI recently reported sales of $28.1
million for the nine months ended December 31, 1998 versus $8 million in the
comparable prior-year period. DCI recently announced it will begin operating
as a Competitive Local Exchange Carrier (CLEC) throughout Spain due to an
agreement with Madrid based Retevision, the national cable television service
provider.
Wavetech International, Inc. is a facilities based telecommunication company.
It is the developer and the distributor of Interpretel calling card products
and is engaged in the resale of international long distance minutes. The
Company's advanced computer/telephony network provides subscribers a single
point of access to a broad range of communications and information services.
Wavetech markets its services in the United States and Canada under the
Interpretel(TM) name and through other customized or co-branded initiatives
with other organizations.
This press release contains certain forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. This information may involve risks and uncertainties that could cause
actual results to differ materially from such forward-looking statements.
Factors that would cause or contribute to such differences include, but are
not limited to the uncertainty of the Company's ability to satisfy the
conditions to the continued listing of its Common Stock on The Nasdaq SmallCap
Market, the consummation and results of its merger with DCI, and other factors
detailed by Wavetech in its filings with the Securities and Exchange
Commission.
SOURCE: Wavetech International, Inc.
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