Telegroup, Inc. Announces Offfer to Acquire Newsnet ITN Ltd.
January 28, 1998, Fairfield, Iowa. Telegroup, Inc. (NASDAQ:TGRP) announced today that Telegroup Network Services Pty. Ltd., a wholly-owned subsidiary of Telegroup, Inc., proposes to make an offer to acquire all of the common stock of Newsnet ITN Ltd. which it does not already hold at a price of AU $0.60 per share. Telegroup's offer includes a provision to cancel all outstanding listed Newsnet options at a price of AU $0.10 per option. Newsnet ITN Ltd. is a provider of enhanced fax services based in Sydney, Australia, with distribution offices in the U.K., Hong Kong, South Africa, New Zealand, Korea, Italy, the U.S. and other locations. Newsnet's services include store-and-forward facsimile services, broadcast fax services, and LAN-based fax services. Newsnet maintains a global IP fax network which includes 35 termination points in 21 countries.
According to Mr. Cliff Rees, President and CEO of Telegroup, Inc., "The acquisition of Newsnet will be a significant step in Telegroup's strategy to become a leading provider of enhanced telecommunications services on a global basis. Newsnet's enhanced fax services compliment Telegroup's existing national and international long distance, prepaid and postpaid calling cards, and other enhanced voice services. Newsnet's broadcast fax and LAN-based fax services will enable Telegroup to address the needs of corporate customers worldwide and to become a leading provider of IP fax solutions.
" Telegroup Network Services Pty. Ltd. had acquired, prior to this announcement, 2.35 million shares of Newsnet's common stock in an open market transaction (representing approximately 9.9% of Newsnet's outstanding common stock).
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 that Telegroup Network Services Pty. Ltd. will acquire Newsnet, that the acquisition will be a significant step in Telegroup's strategy to become a leading provider of enhanced telecommunications services and that Newsnet's fax services will compliment Telegroup's enhanced services and enable Telegroup to address needs of corporate customers and become a leading provider of IP fax solutions. The Company's ability to meet these objectives are difficult to forecast and the outcome could differ materially from those projected in the forward-looking statements as a result of numerous factors, including without limitation, that the proposed transaction may not be consummated.
###
