TELEGROUP, INC. ANNOUNCES EXTENSION OF LOAN
Fairfield, Iowa (February 2, 1999) Telegroup, Inc.
(NASDAQ: TGRP) today announced that it has received an extension until February 5, 1999, with respect to
its loan from Foothill Capital Corporation, while the Company continues to investigate
financial restructuring alternatives. The $25 million loan from Foothill Capital
Corporation came due on February 1, 1999.
Telegroup provides national and international long distance
telecommunications services, serving residential and small and medium-sized business
customers in more than 200 countries worldwide. Telegroup operates a global, digital,
facilities-based network, the Telegroup Intelligent Global Network ®, which consists of
25 Nortel GSP and Excel LNX voice switches in 12 countries, 23 Nortel Passport ATM
switches, 6 enhanced services platforms, 26,000 miles of owned and leased capacity on
digital fiber-optic cable links, and leased parallel data transmission capacity. Telegroup
had revenues of $337 million in 1997.
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