Telegroup Adds Mediacom Telefacilities Ltd. and Completes Newsnet Pty. Ltd. Purchase
FAIRFIELD, Iowa--(BUSINESS WIRE)--June 16, 1998--Telegroup, Inc. (Nasdaq: TGRP - news), a leading global telecommunications provider, has acquired the business of Mediacom Telefacilities Ltd., a U.K.-based provider of telecommunications services. Telegroup also announced that it has completed the purchase of Newsnet Pty. Ltd., a Sydney-based provider of enhanced fax services.
Telegroup, Inc.'s Senior Vice President, Global Retail Businesses and Services, Eric Stakland, commented: ``Newsnet presents Telegroup with a unique opportunity to gain market leadership in the area of enhanced fax and messaging solutions. This acquisition advances our strategy of providing a complete portfolio of services to our customers including voice, Internet access, wireless, calling cards, and enhanced messaging solutions. Newsnet's strategy of distributing fax services globally via IP telephony also complements Telegroup's global ATM network roll-out.''
Newsnet's Managing Director, John Varnay, stated: ``We are pleased to be joining forces with Telegroup. Telegroup's distribution strength in Europe and Latin America complements our well-established presence in the Pacific Rim, South Africa, United Kingdom, and Italy.''
Newsnet, which is headquartered in Sydney, Australia, commenced customer services in 1990 and has been listed on the Australian Stock Exchange since April 1995. Newsnet's global fax network is deployed in 34 cities in 20 countries and utilizes Internet Protocol (IP) telephony to deliver higher quality service at lower cost. Telegroup had announced its tender offer for Newsnet in April `98.
Newsnet's services to corporate customers include:
- international store-and-forward services with guaranteed delivery,
- broadcast fax to multiple destinations,
- LAN-based fax services which enable corporate users to originate faxes from desktop PCs,
- news release distribution for media and travel related firms, and
- integrated fax-on-demand voice-mail service.
Regarding Mediacom Telefacilities Ltd., Mr. Stakland commented: ``We are also pleased to add the business, customers, and distribution network of Mediacom to our growing U.K. presence.''
Mediacom is a London-based provider of national and international long distance services to corporate customers throughout the U.K. Mediacom utilizes a network of PABX dealers and distributors as its primary distribution channel.
Mr. Stakland added, ``Mediacom's distribution strategy is very similar to that of Corporate Networks, whose acquisition we recently announced. The two firms combined annual revenues will greatly increase our corporate market penetration.''
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, success of the acquisition, reduction of Telegroup's costs, 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.
###
