Carnegie International Corporation Signs Letter of Intent to Purchase Stock of Two Merged Texas Phone Companies.Business & High Tech Editors BALTIMORE--(BUSINESS WIRE)--May 11, 2000 Carnegie International Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: CGYC CGYC Canossian Global Youth Conference CGYC Common Ground Youth Church ), an Internet support and computer telephony holding company, announced today that it has signed a Letter of Intent to purchase 100 percent of the stock of two merged Texas-based local phone companies. The Letter calls for a definitive agreement to be signed within 45 days, upon completion of due diligence. Being acquired are Transnational Telecommunication of San Antonio, and Express Telecommunication, Inc. (d/b/a Phone America) of Fort Worth, both established in 1996 as competitive local exchange carriers (CLECs). They compete in Texas with local phone companies, including Southwestern Bell (NYSE NYSE See: New York Stock Exchange : DSW DSW - penis war ), and in other states with similar companies, such as BellSouth (NYSE: BLS See Bureau of Labor Statistics. ). The merged companies report that they provide local dial tone service to more than 7,000 business and residential customers, market and sell pre-paid dial tone service for residential use, and have relationships with the Texas Food Industrial Association and the Oklahoma Grocery Association, which sell their pre-paid services in more than 600 locations, with plans to expand to some 5,000 locations. They have Public Utility Commission (PUC (Public Utility Commission) A regulatory body in every state in the U.S. that governs public utilities within its jurisdiction such as electricity, gas, oil, sewer, water, transportation and telephone service. Some states call it the Public Service Commission (PSC). ) or Public Service Commission (PSC) to operate in Arkansas, Florida, Kentucky, Missouri, Oklahoma and Texas, with applications pending in Arizona, California, Kansas and Tennessee. The companies said they plan to submit applications for commissions to operate in Delaware, Maryland, New Jersey, New York and Pennsylvania. The companies report they have a combined revenue of $5 million, with an 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 of $500,000. "The proposed acquisition of these profitable and growing enterprises is a natural extension of Carnegie's goal of providing a full range of telecommunication services, including local and long distance dial tone, to complement our computer telephony, network servicing and Internet support businesses," said Lowell Farkas, president of Carnegie. Carnegie International Corporation (OTC BB: CGYC, www.carnegieint.com) is an Internet support and computer telephony holding company with specialization in telecommunications products, services and distribution, and in E-Commerce and EDI (Electronic Data Interchange) The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. . Its primary wholly-owned subsidiaries include: RomNet Support Services, Inc., an Internet, e-business and technical support services company, Profit Through Telecommunications (Europe) Ltd. (PTT (1) (Postal, Telegraph & Telephone) The governmental agency responsible for combined postal, telegraph and telephone services in many European countries. (2) See push-to-talk. PTT - Post, Telephone and Telegraph administration ), a telecommunications software company providing business solutions utilizing proprietary speech recognition, touch tone and bar code responses to send and/or receive information; ACC See adaptive cruise control. Telecom of Columbia, Maryland, a leading reseller of equipment and business telephone systems from Comdial(TM), SONY(R) and Sprint(R); Voice Quest, Inc., of Sarasota, Florida, a developer and provider of speech recognition and voice mail technologies and products, and Paramount International Telecommunications, Inc., of Vista, California, which serves hotels and other businesses, primarily in 0+/- call auditing and international one-plus sectors. 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 provides a "safe harbor" for forward-looking statements. Certain information included in this Press Release (as well as information in oral statements or other written statements made or to be made by Carnegie International Corporation) contain statements that are forward-looking, such as statements relating to the future anticipated direction of the telecommunications industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Carnegie International Corporation. These risks and uncertainties included, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, change in Federal or state laws, and market competition factors. All trademarks are properties of their respective owners. |
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