ACQUISITION TO EXPAND MID-CONTINENT MARKET PRESENCE.BATON ROUGE Baton Rouge (băt`ən r zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. , La.--(BUSINESS WIRE)--Nov. 13, 1996-- WOULD ADD INTERNET, CELLULAR, PAGING BUSINESS TO NETWORK LONG DISTANCE Network Long Distance, Inc. (NTWK) announced today it has signed a letter of intent which would result in its second acquisition of a Mid-Continent-based telecom concern in the past two months. NTWK has entered into an agreement to acquire Universal Telecom Technologies, Inc. (UTT UTT University of Trinidad and Tobago UTT University of Texas at Tyler UTT Under The Table (software release that hasn't gone through official channel) UTT Unable to Test UTT Uniform Traffic Ticket ) of St. Louis, an inter-exchange carrier (communications) inter-exchange carrier - (IXC) A company allowed to handle long-distance calls following the break-up of the Bell system in the US by anti-trust regulators. which provides primarily dedicated-access direct-dial (1+) and toll free (1-800, 1-888) services to small businesses and to associated affinity customers related to those commercial accounts. In addition, UTT provides remote voice mail, paging, cellular services and Internet access See how to access the Internet. to its customer base. UTT currently produces approximately $6 million in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. long distance revenues, and has generated an average annualized growth rate in excess of 60% over the past year. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Michael M. Ross, President and Chief Executive Officer of NTWK, the UTT transaction takes on additional significance in that it follows closely on the heels of NTWK's recently announced intent to merge with United Wats, Inc., a Kansas City-based carrier generating more than $21 million per year in annualized revenues. Together with United Wats, NTWK's current annualized run-rate now exceeds $60 million in revenues per year. "The fact is, with more than 85% of UTT's long distance volume currently originating from within Missouri and Illinois, this transaction would obviously fit in well with our United Wats merger in Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). ," Ross said. "UTT's calling traffic also dovetails nicely with the traffic we purchased in our prior acquisitions from Network Services, Inc. and Value-Tel, Inc., which are based in the contiguous states of Oklahoma and Illinois, respectively. "Indeed, the physical proximity of UTT to our previous mergers and acquisitions would help us to increase our market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" and enhance our industry presence in the growing Mid-Continent region," Ross said. "Moreover, this transaction would further our long-held strategy of building concentrated bases of profitable calling traffic in specific geographic regions of the country -- thereby enabling us to achieve increased economies of scale." Considering that NTWK has traditionally focused on the commercial (rather than residential) segment of the telecommunications market, additional synergies would be realized in that UTT's customer base is also comprised of more than 90% business accounts. In addition, this transaction would enable NTWK, in effect, to establish a new, centrally located, direct sales and customer service platform in the very heart of the continent. Finally, through the planned integration of UTT into the NTWK infrastructure, this transaction would assist in NTWK's ongoing plan to de-emphasize the wholesale segment of its business mix, as this would enable NTWK to move a larger percentage of its company-wide volume from the wholesale category to the retail (or direct sales) category, where the company realizes substantially wider profit margins and enhanced operational controls. Network Long Distance, Inc., founded in 1979 (five years prior to the breakup breakup The division of a company into separate parts. The most famous breakup to date was the 1984 division of AT&T (formerly, American Telephone & Telegraph Company). This breakup was intended to increase competition in the communications industry. of the Bell System), is one of the nation's fastest-growing interexchange carriers offering both digital switch-based and switchless fiber optic services to commercial and residential customers, full service agents and other, smaller long distance companies. Common stock of Network Long Distance trades on The NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol "NTWK." CONTACT: Network Long Distance, Baton Rouge Louis J. Resweber, 504/377-2111 or 800/321-NTWK ntwklou@premier.net |
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