Telegroup, Inc. Presents Plans for Global Network at Annual Shareholder Meeting
Shareholders Approve Amendment to Stock Option Plan and Election of Directors
NEW YORK--(BUSINESS WIRE)--May 20, 1998-- Telegroup, Inc. (Nasdaq: TGRP - news) Mr. Clifford Rees, CEO of Telegroup Inc., today presented the company's recently announced plan to become a global mixed services transport carrier at Telegroup's annual shareholder meeting. Under this plan, Telegroup will be able to combine transmission of voice, data and video through a single telephone network utilizing asynchronous transfer mode (ATM) technology.
Mr. Rees stated: ``This is a natural step for the Company to take in expanding its services to larger business customers, thereby augmenting its current customer base, while simultaneously improving service quality and reducing costs. This system will provide access for intranets, extranets, high bandwidth internets, virtual private networks blending voice, data and video as well as for high quality interactive, real-time applications for various vertical markets.''
Mr. Rees noted that the company is building a global organization which expects to have a Phase I roll-out in New York, Amsterdam, London and Tokyo launch by the end of 1998 or beginning of 1999. Phase II will be implemented thereafter and will include roll-out to additional major cities in Europe, South America and the Far East.
Mr. Rees concluded, ``The goal of Telegroup is to increase its market share through both internal growth and strategic acquisitions. New direct marketing plans and incentives are in place which include programs that will enhance agent retention and the acquisition of high revenue producing agents.''
At the meeting, the shareholders also approved the re-election of Eric E. Stakland, Senior Vice President, Global Retail Businesses and Services; Rashi Glazer, and Steven J. Baumgartner, President and Chief Operating Officer as Class I Directors whose terms expire in 2001.
The Shareholders approved to amend the Company's 1996 Stock Option Plan to increase the number of shares of common stock issuable upon exercise of stock options under Telegroup's 1996 Stock Option Plan from 4,000,000 shares to 4,750,000 shares. The purpose of the stock option plan is to provide long-term incentives to key employees and motivate key employees to improve their performance.
Telegroup is a leading emerging multinational carrier of long distance telecommunications services to over 200 countries. Telegroup offers services to small- and medium-sized businesses and residential customers. The company also provides value-added wholesale services to over 40 domestic and international telecommunications carriers. Telegroup is recognized as having one of the most comprehensive global sales, marketing, and customer service organizations of the emerging multinational carriers. The company operates a digital, facilities-based network, the Telegroup Intelligent Global Network(R), which consists of a central operating center, twenty-one switches, five enhanced service platforms, owned or leased capacity on ten digital fiber-optic cable links, and leased parallel data transmission capacity.
Telegroup had revenues of $337 million in 1997.
This press release contains certain forward-looking statements, with in the meaning of Section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934, including statements regarding Telegroup's future operating performance and network expansion. Telegroup's actual results might differ materially from those projected in forward-looking statements as a result of numerous factors including without limitation, the Company's success in developing its business plan and acquiring additional financing needed to meet this plan, market competition, unforeseen operating and technical problems, regulatory uncertainties, possible delays in the full implementation of liberalization initiatives by foreign governments, foreign currency fluctuations, and changes in the U.S. and foreign tax laws. Those and other risks are described in the Company's filings with the Securities and Exchange Commission.
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