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Frontline Communications to Acquire InterMR S.A. de C.V.


Business Editors

PEARL RIVER Pearl River, uninc. village (1990 pop. 15,314), Rockland co., SE N.Y., near the N.J. line. It is a residential suburb of New York City, and a computer and telecommunications research and development center.
Pearl River

River, central Mississippi, U.
, N.Y.--(BUSINESS WIRE)--May 1, 2003

Firm Focuses on ATM, POS (1) See point of sale and packet over SONET.

(2) "Parent over shoulder." See digispeak.

POS - point of sale
 and Check Cashing Systems, and Electronic

Fund Transactions

Frontline Communications Corp. (AMEX AMEX

See: American Stock Exchange
: FNT FNT Font (File Name Extension)
FNT Front
FNT Fontana (postal locality, Malta)
FNT Fascinating New Thing (song)
FNT Flint, MI, USA - Bishop Int'l Airport
), www.fcc.net, announced today that it has entered into an agreement to acquire InterMR S.A. de C.V. ("InterMR"), a company focused on ATM and Electronic Money Transfer equipment and transactions.

InterMR, headquartered in Mexico City Mexico City
 Spanish Ciudad de México

City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi
, Mexico, with offices in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation).
The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl.
, markets its products, including the sale and lease of ATM (Automatic Teller Machine See ATM. ) and POS (Point of Sale) devices, and the placement of company-owned ATM and POS equipment, through its various distribution affiliates in the United States, Mexico, and Costa Rica. InterMR focuses its marketing efforts on the Spanish-speaking populations in both North and South America, with additional affiliate and distribution agreements expected to be executed within the next few months covering El Salvador, Puerto Rico, Panama, Peru and Uruguay. InterMR holds a master distribution agreement with a leading U.S. based ATM manufacturer, and can create and serve both open and closed ATM and POS networks. InterMR also provides money transfer solutions, including equipment and ongoing maintenance services through third party contracts, and expects to complete and launch its electronic check cashing capabilities in the near future using the same suppliers and service partners with which it is currently associated.

In commenting on the announcement, Frontline Chairman Ventura Martinez del Rio The Martinez del Rio Family
The Martinez del Rio family in Mexico shares with few others the top echelon of Mexico's most prominent families. The family has been important in shaping Mexico's politics, economy and society from the time of Mexican independence from Spain,
 Arrangoiz indicated that the acquisition of InterMR fulfills the hardware, distribution and service components of the Company's previously announced plans to begin marketing cash cards, payroll cards and other forms of payroll and money transfer services. The Chairman stated, "This transaction provides us with an excellent product with substantial distribution capabilities falling squarely within our business model, and should accelerate our planned launch of this new line of services." Mr. Martinez del Rio also noted, "Upon closing of this deal, the only other substantial part of our strategy to be completed in order for us to launch this new product line will be the development and procurement of the actual cash and payroll cards, and the related software and banking relationships." Frontline expects to close the transaction during the month of May.

About Frontline Communications Corp.

Founded in 1995 and traded on the American Stock Exchange American Stock Exchange (AMEX)

Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921.
 under the symbol FNT, Frontline Communications Corp. has two operating divisions, Provo and Frontline.

The Provo division (www.provo.com.mx), acquired by Frontline Communications Corp. in April, 2003, is a Mexican corporation which maintains a dominant position within the prepaid calling card and cellular phone airtime markets in Mexico. Provo and its affiliates have been in operation for over seven years, and had combined reported (unaudited) revenue in 2002 of approximately $100 million, with operating profits of over $800,000. The company currently anticipates expanding existing Provo services to the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. , and intends to begin marketing cash cards, payroll cards and other forms of payroll and money transfer services, through both the Frontline and Provo divisions, in the near future.

The Frontline division provides high-quality Internet access and Web hosting services to homes and businesses nationwide, and offers Ecommerce, programming, and Web development services through its PlanetMedia group, www.pnetmedia.com. With the assistance of its newly acquired Provo division, Frontline plans on expanding its current services and offerings beyond the traditional internet sector in the near future. The Frontline division had revenue of approximately $5 million in 2002.

The statements which are not historical facts contained in this press release are forward looking statements that involve certain known and unknown risks and uncertainties, including but not limited to, the ability to successfully integrate the acquired companies' businesses into Frontline, changes in the market for Internet or distribution services, regulatory and technological changes, economic factors, increased competition, foreign currency devaluation Currency devaluation

A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold.
, foreign market risk, and the nature of supplier of customer arrangements which become available to the Company in the future. The Company's actual results may differ materially from the results discussed in or implied by any forward-looking statement forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
. The words "intend," "expect," "should," "project," and "anticipate," and similar expressions identify forward looking statements. Readers are cautioned not to place undue reliance on these forward looking statements which speak only as of the date they were made.
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Publication:Business Wire
Geographic Code:1USA
Date:May 1, 2003
Words:710
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