RMII... I had a position on Monday. Sold 1/2 today and got back at end of day. IMO RMII will be like RCNC or PCNTF:
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Rocky Mountain Internet Pursuing Western U.S.
Communication Provider With $36 Million in
Revenue
RMI Intends to Add Revenue and Customer Base Through
Proposed Acquisition of UStel and Arcada
DENVER--(BUSINESS WIRE)--April 8, 1999-- Rocky Mountain Internet Inc. (RMI) (Nasdaq:RMII - news;
Nasdaq:RMIIW - news), a national e-business and convergent communications company, Thursday announced
that it recently entered into an agreement to purchase the assets of two full-service telecommunications
companies, UStel Inc. (UStel), and Arcada Communications Inc. (Arcada), which filed for Chapter 11
bankruptcy on March 10, 1999.
UStel and Arcada are inter-exchange carriers of telecommunications services with headquarters in Seattle, with
commercial and residential customers primarily in the Western United States. UStel and Arcada have
historically generated combined gross annual revenues in the range of $30 million to $40 million.
RMI has agreed to acquire all the operating assets of UStel and Arcada for consideration including $17 million
cash, and 275,000 warrants of RMI stock, subject to financing and certain other contingencies including
approval of the bankruptcy court and absence of a higher offer.
''RMI is interested in the acquisition of UStel and Arcada in order to expand our data service capability and
leverage the existing telemarketing resources related to our recent acquisition of CNS this February,'' said
Douglas H. Hanson, chairman and chief executive officer of Rocky Mountain Internet.
''However, the most important beneficial aspects of the proposed transaction center on our ability to
immediately provide RMI's existing Internet-based products and services to more than 50,000 UStel and Arcada
customers, including more than 10,000 small- and medium-sized businesses.
''We are excited about this potential opportunity to increase our existing geographic presence and cross-sell
our Web-hosting, e-commerce and Internet connectivity services to this established regional customer base.
''Additionally, the related incremental management and financial resources will allow RMI to comfortably
transition existing UStel and Arcada operations to a more cost-effective platform, plus accelerate existing
growth plans directly relating to our Internet and Web-based business,'' Hanson concluded.
Arcada has switch facilities in Seattle; Portland, Ore.; Denver; Phoenix; Las Vegas; Los Angeles; and Salt Lake
City. The companies offer a full range of telecom products to their customers including long-distance voice and
data transmission services, 1+ dialing and ''800'' service, calling cards, wireless telephone service and paging
reselling.
The combined customer base consists of more than 50,000 residential and commercial customers, including
more than 10,000 wireless customers located primarily in the Northwest and Southwest regions.
Denver-based RMI is a national e-business and convergent communications company. RMI's comprehensive
e-business solutions include the following: electronic commerce, custom portals and banner advertising
applications; Web site, intranet and VPN design and programming; and hosting, Web marketing and consulting.
RMI's convergent communications technologies include the following data and voice services: high-speed
dial-up, wireless, DSL, and dedicated Internet access; switched long-distance, calling card, 800 services, voice
mail and alphanumeric paging; and IP-Telephony.
In addition to the company's e-business solutions and convergent communications technologies, RMI also
maintains the award-winning portal site Infohiway at www.Infohiway.com. For more information about RMI call
800/864-4364, or visit the company's Web site at www.rmi.net.
This news release contains forward-looking statements. These forward-looking statements are subject to risks
and uncertainties. Actual results may differ materially from such forward-looking statements as a result of risks
and uncertainties that are described in the cautionary statements section of the company's 10-K dated Dec. 31,
1997, and include the need for additional financing, the ICC litigation, ability to successfully integrate
acquisitions, changing technology, competition, possible future government regulation, competition for talented
employees, the company's ability to fund future operations, and the company's need to refinance debt. |
