Telegroup Acquires South East Telecom and Corporate Networks
FAIRFIELD, Iowa--(BUSINESS WIRE)--June 10, 1998--As part of its growing U.K. presence, Telegroup(R), Inc. (Nasdaq: TGRP - news), a leading global telecommunications provider, has acquired the Corporate Networks group of companies, including South East Telecom Limited and its affiliate, Phone Centre Communication (Service) Limited. South East Telecom offers telecommunications services under the Corporate Networks brand name.
Telegroup UK Managing Director Gary Muchmore said: ``The acquisition of the Corporate Networks group of companies is consistent with our strategy to expand our U.K. market share by offering corporate customers a broad range of low cost international and national telecommunications services.''
Telegroup, Inc.'s Senior Vice President, Global Retail Businesses and Services, Eric Stakland, commented: ``Telegroup recently demonstrated its commitment to the U.K. market by increasing our ownership of transatlantic bandwidth capacity more than 30 times, by purchasing an STM-1 on the Gemini (New York - London) cable system. This enables us to provide our U.K. customers with lower cost services, greater access to Telegroup's global switching network, and redundant routing capability in the event of cable failure. We are very pleased to be able to offer these advantages to existing and future Corporate Networks customers.''
Mr. Muchmore continued: ``We see Corporate Network's existing dealer distribution network as an ideal base upon which to expand our corporate distribution through attractive channel incentives.''
South East Telecom and Phone Centre Communication have provided telecommunications systems to corporate customers in the U.K. since 1985. South East Telecom specializes in the supply, installation, and maintenance of business telecommunications, data systems and services to business customers throughout Great Britain. The company's product portfolio includes telephone systems, voicemail, call management systems, facsimile machines, wide and local area paging systems, and computer-telephone integration technology.
Phone Centre provides a full range of engineering and maintenance services, from the installation of voice only or voice and data structured cabling systems, through the installation of equipment and ongoing maintenance.
Under the Corporate Networks brand name, South East Telecom also provides a broad menu of telephone services to business customers, including national and international long distance, freephone (0800) service, global calling cards, and prepaid calling cards.
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.
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's network, improvement of Telegroup's competitive position, benefits and advantages of the acquisition, and achievement of Telegroup's business plan. 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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