eXpeTel Communications
Executes Letter of Intent With
International Telecommunications Company
May 7, 2004
JACKSON - eXpeTel Communications, a regional integrated telecommunications service provider based in Jackson, Mississippi announced today that it has signed a Letter of Intent to become the U.S. headquarters and operations facility of Xfone, Inc. (OTC BB: XFNE), (Berlin: XFO), a U.S. domiciled corporation with its main operations in the UK.
The acquisition is expected to add more than $5 million in annual revenue and be accretive to Xfone's 2004 earnings. The transaction, subject to the signing of definitive agreements and customary closing conditions, is expected to close by July 2004. The terms of the acquisition were not disclosed.
eXpeTel will become Xfone USA and its customers will directly benefit from the strength of the financially sound public parent company, creating an exceptional opportunity to continue the Company's strategic growth initiatives throughout the southeast. "This is what we have been working so hard to accomplish over the past three years," said Wade Spooner, CEO of eXpeTel. "Our existing and new customers in our service areas will benefit from the traditional and next-generation service offerings that we will continue to make available."
eXpeTel provides residential and business customers with high quality local and long distance telephone services, as well as cable television and high speed Internet to planned and multi-dwelling apartment communities. The Company's integrated multimedia services, combining digital voice, data and video over third-generation broadband infrastructure, are available to customers on a single itemized bill.
Guy Nissenson, President and CEO of Xfone, said, "We are extremely pleased with this opportunity to establish Xfone's presence in the U.S. telecom market. We found in eXpeTel all the ingredients that we sought in a target company: a capable and experienced management team, a strong recurring revenue base driven by both residential and business customers, a comprehensive service offering including local, long distance, wireless and Internet, and of state-of-the-art facilities with an advanced infrastructure. The eXpeTel business model lends itself well to our current strategy and to the model of our UK subsidiary, Swiftnet. We believe that we will be able to leverage the synergies of the two companies, resulting in joint interconnect agreements, as well as the sharing of technology and systems."
eXpeTel's customers are assured of a seamless transition, as the U.S. corporate headquarters will remain in Jackson on Lakeland Drive and the company management and employees will continue in their current capacities in the day to day operations of the company. "This transaction allows us to continue to provide savings and service to our loyal customers as well as provide new services and pricing alternatives," said Ted Parsons, eXpeTel's Executive Vice President and Chief Marketing Officer.
Mr. Nissenson added, "This transaction is a win-win situation for the customers of eXpeTel and for both companies. The acquisition of eXpeTel strengthens Xfone's position to capitalize on the opportunities that exist in the U.S. market. The two companies have synergistic business plans and strong management teams that will support the opportunity to continue the Company's strategic growth initiatives."
About eXpeTel Communications
eXpeTel Communications serves customers in the states of Alabama,
Florida, Georgia, Louisiana and Mississippi and is growing rapidly
throughout the BellSouth operating territory. A full-service
provider of telecommunications products, eXpeTel offers an array
of services, including local and long-distance telephone services,
high-speed Internet access, and commercial voice and data services.
eXpeTel also provides CATV and high speed Internet services
to planned communities and multi-dwelling apartment communities,
utilizing integrated multi-media offerings - combining digital
voice, data and video services over 3rd generation broadband
technologies. More information about eXpeTel Communications
can be accessed on the Internet at http://www.expetel.com/.
About XFONE, Inc.
A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United Kingdom, the United States and Israel that offers a wide range of services, which include: local, long distance and international telephony services; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. The Company serves customers worldwide. For the Company’s website, please visit: www.xfone.com
This press release contains forward-looking statements. The words or phrases "should," "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." The Company's financial results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this press release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, and license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.
| For More Information,
Please Contact: |
| U.S. IR Contact |
Israel IR Contact |
Xfone Contact |
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone: 1-203-972-9200
E-mail: jnesbett@institutionalms.com
|
Zvi Rabin
Kwan Communications
Tel: (Israel) +972 50 560 0140
E-mail: zvi@kwan.co.il |
Niv Krikov
Chief Financial Officer
Phone: + 972.39254446 (Israel)
E-mail: niv@xfone.com |
| |
|
|
|
