BiznessOnline.com Buys Prime Communication Systems; Company Gains Additional Internet Data Center Facility.Business Editors WALL, NJ/BUFFALO, NY--(BUSINESS WIRE)--Dec. 30, 1999 BiznessOnline.com (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BIZZ), today announced that it has acquired Prime Communication Systems, Inc., a provider of wholesale co-location and Web hosting services and high-speed Internet See broadband. access, based in Buffalo, NY. BiznessOnline.com is a leading provider of Web solutions, and broadband Internet access Broadband Internet access, often shortened to just "broadband", is high speed Internet access—typically contrasted with dial-up access over modem. Dial-up modems are generally only capable of a maximum bitrate of 56 kbit/s (kilobits per second) and require the full use of a for businesses in the Northeast's secondary markets. Prime Communication Systems offers services to approximately 12,800 customers and is forecast to generate $1.8 million in revenue and $500,000 in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become in 1999. Including this acquisition and the previously announced planned acquisitions, BiznessOnline.com's 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. revenue run rate will be approximately $28 million and the Company's total customer base will be approximately 63,000. Prime specializes in providing businesses with co-location and Internet support infrastructure and Internet access via Frame Relay and other broadband services. The company's activities include: - Internet Data Center: Prime currently operates an IDC that serves its 12,800 customers, and is completing a second co-location facility that will support an additional 250 servers. - Private Label Internet Access: The company wholesales access and support to other business that want to operate as an ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. under their own brand. - DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary Services to Business and Home: Prime offers DSL throughout Buffalo and its suburbs in partnership with one of the region's leading competitive carriers. - Smart Buildings: The company contracts for the installation of fiber into office buildings, enabling businesses to share T1 or faster Internet access and decrease service costs. Mark E. Munro, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of BiznessOnline.com commented, "Prime Communication Systems' focus on infrastructure and broadband services as well their wholesale model adds a new dimension to the BiznessOnline.com's product line. Prime's excellent growth rate, positive cash flow, product line and geographic location make it a natural addition to the BiznessOnline.com's network of companies." Kirk Miller, owner of Prime Communication Systems said, "Joining BiznessOnline.com's network enables us to enhance our growth opportunity. Our goal of providing complete home and business communication solutions will be concluded with this acquisition and Western New York
Western New York refers to the westernmost region of New York State. will benefit from such added services as Web development and e-commerce that BiznessOnline.com can provide on one bill." BiznessOnline.com BiznessOnline.com is one of the Northeast's largest Web hosting companies and is a leading regional provider of high-speed Internet services for commercial and residential markets. BiznessOnline.com addresses the increasing Web and Internet needs of small and mid-sized businesses by offering high-performance co-location services, enhanced Web hosting and development services, and secure broadband Internet connections via BiznessOnline.com's fault-tolerant, fiber-optic backbone network, supported by 24x7 customer care and network monitoring. BiznessOnline.com's corporate offices are located in Wall, N.J., and the Company can be found on the World Wide Web at www.biznessonline.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Certain statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including risks inherent to the Company's growth strategy, the ability to complete and integrate acquisitions, market demand for the Company's services and other factors affecting the Company's prospects as described in the Company's prospectus in its Form SB-2 registration statement. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. |
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