CellStar to sell Communications Center retail operations.CARROLLTON, Texas--(BUSINESS WIRE)--October 3, 1996--CellStar Corporation (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 : CLST CLST Celestial ) announced today that it will sell its Communications Center An agency charged with the responsibility for handling and controlling communications traffic. The center normally includes message center, transmitting, and receiving facilities. Also called COMCEN. See also telecommunications center. retail business which is conducted inside Sam's Club Sam's Club is a membership-only warehouse club owned and operated by Wal-Mart Stores, Inc. History The first Sam's Club opened in April 1983 in Midwest City, Oklahoma in the United States.[1] Sam's Club is named after Sam Walton. locations across the country to MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. Telecommunications Corporation ("MCI"). CellStar announced on May 21, 1996 that it had entered into a non-binding letter of intent to sell the Communications Center business. CellStar said that the 355 full-service Communications Centers would be sold for an undisclosed amount in a transaction scheduled to close by the end of CellStar's fourth quarter. Under the terms of the agreement, MCI will purchase the assets of the Communications Center operations, assume certain contracts used in connection with the operations and retain substantially all of the employees. CellStar said that it will also sign a distribution agreement with MCI to supply MCI with cellular phones and accessories for the Communications Center retail operations. CellStar said that the proceeds from the sale would be used to reduce its bank debt and for general working capital purposes. CellStar Corporation is an integrated wholesale distributor and retailer of cellular telephones and related products, with operations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the United Kingdom, Mexico, South America, Hong Kong, China, Singapore, Malaysia, Taiwan and the Philippines. The company wholesales a diverse line of cellular products to cellular carriers, distributors, agents, mass merchandisers and automotive dealers and retails such products to end users through approximately 15 stand-alone retail sales locations, in addition to the 355 Sam's Club Communications Centers. The company is one of the largest independent non-carrier distributors of Motorola, Nokia, NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. and Ericsson cellular telephones and accessories throughout the world. CONTACT: For: CellStar Corporation Media Contact: Robert Mead, 212/484-6701 or Investor Contact: Richard Gozia, 972/466-5018 |
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