Telegroup Adds Milan, Italy Facility, Creating the Largest Facilities Based Network in Europe
Fairfield, Iowa January 6, 1998-- Telegroup, Inc. (NASDAQ: TGRP) a leading provider of global long distance telecommunications, with 41 offices, providing services to over 268,000 customers in over 180 countries, is pleased to announce the installation of a new facility in Milan, Italy.
This switch in Milan is projected to be ready for service early January, 1998, along with a point of presence ("POP") in Rome, will provide Telegroup's Global Access Direct (GAD) services for people in these two major cities in Italy. The facility will consist of switches which the Company has used extensively for its locations throughout Europe, Asia and the United States.
Telegroup's current network infrastructure provides telecommunication services throughout Europe and Asia. The Company also has two switches in New Jersey, with two more awaiting circuits. Los Angeles, California will be operational by the second quarter of 1998.
In making this announcement, Mr. Cliff Rees, President and Chief Executive Officer, stated, "It is our goal to expand our installation of POPs to approximately 30 locations by the end of 1998. In addition, we contemplate expanding our "Enhanced Services" which will increase Telegroup's visibility and market share world-wide."
Telegroup switches are currently located in London; Amsterdam, with "POPs" in Geleen and Utrecht; Paris; Copenhagen; Zurich with a "POP" in Geneva; Frankfurt, with "POPs" in Munich, Hanover, Hamburg, Berlin, Stuttgart and Langenfeld. These switches serve the needs of small and medium size businesses for this European market.
Telegroup has four switches in the Pacific rim area, located in two different sites in Hong Kong. Four switches are in production, with the fifth awaiting circuits. Tokyo is operational with a "POP" in Osaka. Australia, has become an important market for the Company with the installation of a switch in Sydney, which also provides service to New Zealand.
"European migration from call-back to GAD is now underway in several cities. Customer acceptance to this service has been most favorable since GAD affords them lower rates, higher quality and faster call completion. Within the next several months it is our intention to introduce this service to the professional market. This is another example of Telegroup's goal to become the leading long distance alternative to the PTTs in the European market," continued Cliff Rees.
Telegroup, with a work force of over 600 and nearly 1,500 sales agents worldwide, offers U.S. and international long distance service, 800 service and calling cards with worldwide voice mail and fax service. Telegroup, the 13th largest U.S. Carrier in 1995, was ranked as the 529th largest company in terms of sales on the 14th annual Equities NASDAQ 1000, and was among only 44 companies who made the Inc. 500 list of fastest-growing companies for the last three consecutive years.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the Company's ability to seize opportunities from continuing deregulation of the telecommunications markets, the number of switches/nodes, circuits and facilities the Company plans to install, the anticipated expansion of regional carrier sales, the anticipated expansion of the Company's direct dial service, the ability to migrate customers from Global Access CallBack to Global Access Direct, the increase in the Company's internal and external sales forces, and the achievement of the Company's business plan. The Company's revenues and ability to continue its expansion are difficult to forecast and could differ materially from those projected in the forward-looking statements as a result of numerous factors, including without limitation, operating and technical problems, regulatory uncertainties, possible delays in the full implementation of liberalization initiatives, competition, availability of capital, foreign currency fluctuations, and changes in the US and foreign tax laws.
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