Telegroup Names Steven J. Baumgartner as President and Chief Operating Officer
February 3, 1998, Fairfield, Iowa -- Telegroup Inc. (Nasdaq: TGRP), a leading alternative provider of international telecommunications services, announced today that it has named Steven J. Baumgartner to serve as President and Chief Operating Officer of the company.
Mr. Baumgartner, 46, was Executive Vice President and a member of the five-person executive committee of R. R. Donnelley & Sons, the $6.5 billion global printing company. Most recently, Mr. Baumgartner served as Sector President of Donnelley's Global Commercial Print Division and was responsible for expanding its presence in numerous international markets. Previously, Mr. Baumgartner oversaw Donnelley's strategic planning, communications, technology and human resources departments. He was founding entrepreneur and Chief Executive Officer of FRC Management, a start-up company providing home care services to the elderly. Mr. Baumgartner was also Senior Vice President of Communications and Human Resources at Rhone-Poulenc Rorer in Paris, France.
"Steve Baumgartner is one of an elite group of managers in the United States who truly understands how to transact business in the global marketplace," noted Clifford Rees, Chief Executive Officer of Telegroup. "In assuming the position of President of Telegroup, Steve will strengthen our senior management team and allow us to leverage his experience as we expand Telegroup's multinational franchise."
The company also noted that Mr. Baumgartner has served on its Board of Directors since 1997, and will continue as a director after assuming his position as President and Chief Operating Officer of Telegroup. Rashi Glazer, a member of Telegroup's Board of Directors who has served with Mr. Baumgartner and who is the Co-Director of the Center for Marketing and Technology at the University of California, Berkeley, added, "Steve is extremely well respected in management circles for his ability to direct international business with far flung, decentralized operating units. Although Telegroup is based in Fairfield, Iowa, it has a significant presence in markets as disparate as Sweden, New Zealand and Brazil. A manager of Steve's capabilities will be crucial to the ongoing roll-out of Telegroup's operations throughout the world."
Clifford Rees, formerly President and Chief Executive Officer of Telegroup, will continue to serve as Chief Executive Officer. Mr. Rees will focus on Telegroup's strategic issues, planning and relationships, ensuring that Telegroup remains a marketing and technology leader in the domestic and international telecommunications industry. John Lass, formerly Chief Operating Officer, will serve as the Company's Senior Vice President, Strategy and Business Development. Mr. Lass will direct, among other things, the Company's merger and acquisition activities.
Telegroup is a leading global alternative provider of long distance telecommunications services. The company offers a broad range of discounted international, national, and enhanced telecommunications services to 270,000 small- and medium-sized business and residential customers in over 180 countries worldwide. In addition, Telegroup offers value-added wholesale services to over twenty domestic and international telecommunications carriers. The company has achieved its significant international market penetration by developing what it believes to be one of the most comprehensive global sales, marketing and customer service organizations. Telegroup operates a reliable, cost-effective, digital, facilities-based network, the Telegroup Intelligent Global Network, which consists of a central network operating center, nineteen switches, five enhanced service platforms, owned or leased capacity on seven digital fiber-optic cable links, and leased parallel data transmission capacity connecting Telegroup's switches to each other and the network of other national and international carriers. Telegroup had revenues of $238.5 million for the first three quarters of 1997.
Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995: This news release contains statements which are not historical facts and may be considered 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 expansion of Telegroup internationally. Telegroup's actual results might differ materially due to numerous factors including, without limitation, the Company's success in developing its business plan, and acquiring additional financing needed to meet this plan, foreign currency fluctuations, termination of certain operating agreements, and changes in tax law. Those and other risks are described in the Company's filings with the Securities and Exchange Commission..
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