BiznessOnline.com to Acquire ICONN.WALL, N.J.--(BUSINESS WIRE)--Oct. 7, 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 NM: BIZZ) announced today that it has reached an agreement in principle to acquire ICONN, L.L.C. a regional provider of high speed Internet access See how to access the Internet. and web hosting services located in New Haven, Connecticut. Together with the previously announced agreement to acquire NECAnet, ICONN will be the Company's third 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. in the state of Connecticut. ICONN is cash flow positive and its income will be accretive to BiznessOnline.com's 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 . This year the company is forecast to generate $650,000 in revenue, with a major focus on commercial accounts and web services, and its acquisition will add ICONN's 2000 customers to BiznessOnline.com's client base. The terms of the transaction were not disclosed. ICONN's acquisition will bring BiznessOnline.com's Connecticut base to 15,000 subscribers and Company wide revenue run rate to approximately $12 million. ICONN specializes in providing Internet access via Frame Relay, 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 and other broadband services, hosts more than 800 web domains, and serves approximately 1,000 dial-up ISP customers. ICONN's base in New Haven broadens and consolidates BiznessOnline.com's Connecticut operations, and the acquisition will bring BiznessOnline.com's overall customer base to more than 32,000 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 "ICONN's operations are an ideal match with our company, and their capabilities complement our existing Connecticut operations perfectly. With three companies in Connecticut we will have critical mass in the state, which presents outstanding opportunities to aggressively expand BiznessOnline.com's activities in Connecticut and to consolidate network costs." Peter Sachs, Esq., President of ICONN said, "We're looking forward to working with BIZZ. Their people and infrastructure are first-rate, and we see a bright future together. Our customers will have access to a greater breadth of services as well as increased bandwidth and redundancy. In addition, we'll be able to maintain our local presence and personnel. Taken together, all of these factors will augment the already high level of service that we offer our customers." BiznessOnline.com is a leading regional provider of Internet and Web Application services to small and medium-sized businesses and residential accounts in underserved, secondary markets in the Northeastern US. The Company offers bundled, tier-1 network broadband services via DSL, Frame Relay, and T-1 and T-3, new web media and e-commerce development, web hosting, and dial-up services. 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. L.G. Zangani, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control provides financial public relations Financial public relations Public relations division of a company charged with cultivating positive investor relations and proper disclosure information. service to the Company, As such L.G. Zangani, LLC and/or its officers, agents and employees, receives remuneration for public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most and or other services in the form of moneys, capital stock in the Company, warrants or options to purchase capital in the Company. |
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