ClearWorks - Like Having AT&T, SBC, TCI and AOL in One Bundled Digital Services Package.HOUSTON--(BUSINESS WIRE)--March 9, 1999-- Nation's first completely intelligent communities are being built; The first contract estimated to bring ClearWorks $36 million in revenues ClearWorks Technologies, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CLWK) announced today that it has signed a contract to provide bundled digital services to 1,200 homes in the new Canyon Gate at Northpointe subdivision in Houston. This is the first time an all-digital and intelligent community is being built anywhere in America. Some of the builders include Centex Homes (NYSE NYSE See: New York Stock Exchange :CTX CTX Context (Management; Tandem) CTX Centex Corporation (stock symbol) CTX Centrex CTX Cyclophosphamide CTX Corporate Trade Exchange CTX Cytoxan CTX Cholera Toxin CTX Clinical Trial Exemption ) and Pulte Homes (NYSE:PHM). The first houses have already been completed. According to the U.S. Commerce Department's estimates, 1.6 million new homes were started in 1998 in the U.S. alone. The lifetime value of this first contract is estimated at $36 million, but represents just a fraction of ClearWorks' estimated $60 billion annual market potential. ClearWorks acts in conjunction with developers to build a fiber-optics network into new subdivisions and then pre-wires every house in the neighborhood for a full complement of bundled digital services. "Residents in ClearWorks-wired neighborhoods are getting Internet connections at a bi-directional speed of up to 100 megabits per second (unit) megabits per second - (Mbps, Mb/s) Millions of bits per second. A unit of data rate. 1 Mb/s = 1,000,000 bits per second (not 1,048,576). E.g. Ethernet can carry 10 Mbps. , which is 2,000 times faster than with a 56k modem dial-up connection. They get digital telephone service with all the add-ons like voice mail, caller ID, etc. They also get digital cable TV with absolutely no channel limitations, on-demand video rentals, closed-circuit security capabilities, a community Intranet and much more, all from one company," says Michael McClere, 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 ClearWorks Technologies, Inc. According to a Forrester Research (Nasdaq:FORR FORR Friends of the Russian River FORR Freedom of the Road Riders (Motorcyclists) FORR Flight Operations Readiness Review ) study released last September, the telecommunications industry has not necessarily been in sync with consumers' buying patterns. "For bundling to work, service providers need to build packages that reflect consumers' price sensitivity. 64% of consumers state that price is the most important criterion for selecting a service provider," Forrester material states. That's why ClearWorks is pricing its services very aggressively, at least 50% lower than if purchased separately from individual service providers. This will give ClearWorks and the participating builders an additional competitive advantage. To make the homes even more appealing, ClearWorks works closely with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) (NYSE:IBM). In addition to its bundled digital seology already built in. It allows homeowners tohat every home in the community gets wired with the right voice, computer and video wiring. The additional cost to homeowners represents less than 0.5% of the home's price. ClearWorks sees its future as very promising. All of its research and development costs are already behind y long time to overcome. The company's goal is s (NYSE:SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. ). When you think of bundled digital services in the future, you'll think of us," says McClere. ClearWorks is better positioned than companies like AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. oany's agreements with developers enable it to hble manufacturers or installers, ClearWorks can further reduce its need for capital. ClearWorks aims at rapidly expanding its operations nationwide. The initial response to ClearWorks' services has been tremendous. According to Al Brende at Land Tejas Development, the development company behind the Canyon Gate at Northpointe subdivision, "The addition of ClearWorks' bundled services to our homes has helped us exceed our new home sales New Home Sales An economic indicator that measures sales of newly built homes. Released by the U.S. Department of Commerce's Census Bureau, it includes both quantity and price statistics. goals by 450 percent within the first few months. This was exceptional, because in January Houston's new home sales dipped 11% compared to 1998." ClearWorks utilizes technology from major vendors such as Cisco Systems (Nasdaq:CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ), Netscape (Nasdaq:NSCP NSCP National Schistosomiasis Control Program NSCP National Space Communications Program NSCP Native (Mode) Service Control Point (Tandem) ) and General Instruments (NYSE:GIC GIC See: Guaranteed Investment Contract GIC See guaranteed investment contract (GIC). ). Certain statements in this release are forward-looking. Although ClearWorks Technologies, Inc. (the Company) believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Merger Communications (Merger) is a media relations firm employed by the Company. Statements and opinions presented here represent the views of the Company, not Merger, as the release is based on information provided by the Company. Merger and the Company believe that all information in this release has been obtained from sources considered reliable, but cannot guarantee that the statements presented herein are accurate or complete. Merger's compensation for its media relations services consists of a fee and stock. Merger can have a long position in the securities of the companies in which it distributes information for media use, and may be buying or selling securities in the course of its regular business. |
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