FullNet Completes Successful $1.7 Million Debt Conversion.Business Editors OKLAHOMA CITY--(BUSINESS WIRE)--June 7, 2001 FullNet Communications, Inc. ("FullNet")(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :FULO) today announced the completion of a debt exchange offer pursuant to which $1.7 million of its convertible debt and $125,000 of accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. were converted into equity. This represents approximately 78 percent of the Company's outstanding convertible debt. The principal and interest were exchanged for shares of the Company's common stock valued at $.90 and $1.00 per share, respectively. Commenting on the success of the debt conversion, founder and 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. Timothy J. Kilkenny said: "We are delighted by the strong acceptance of the debt exchange offer. This eliminates interest expense exceeding $54,000 per quarter, or approximately 10 percent of our gross revenues based on reported first quarter 2001 results. We believe this sends a strong message that our investors believe the opportunity for capital gains on our common stock exceeds the 12.5 percent annual interest return on the debt, and also represents a tremendous vote of confidence in our business plan, management team and employees." FullNet is a facilities-based Integrated Communications Provider headquartered in Oklahoma City Oklahoma City (1990 pop. 444,719), state capital, and seat of Oklahoma co., central Okla., on the North Canadian River; inc. 1890. The state's largest city, it is an important livestock market, a wholesale, distribution, industrial, and financial center, and a farm , engaged in consumer and business Internet services, including 1) dial-up, 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 , dedicated and broadband wireless See wireless broadband. access, with customers in 25 communities in Oklahoma, and 2) web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. , server co-location and telecommunications premise co-location, with customers throughout the United States and more than 40 foreign countries. For more information, visit the Company's web site at www.fullnet.net. Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "expects," "may," "will," or "should" or other variations thereon, or by discussions of strategies that involve risks and uncertainties. The actual results of the Company or industry results may be materially different from any future results expressed or implied by such forward-looking statements. |
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