GEOTEK AND RWE TO MERGE WIRELESS NETWORKS IN GERMANY RWE & GEOTEK PLAN NEW DIGITAL NETWORK.MONTVALE, New Jersey--(BUSINESS WIRE)--April 10, 1996-- Geotek Communications, Inc. (Nasdaq:NNM NNM Network Node Manager NNM NASDAQ National Market (financial) NNM National Nutrition Month (March; American Dietetic Association) NNM Naryan-Mar (Russia) NNM Net New Money :GOTK) (Pacific:GEO) and RWE RWE Rot-Weiss Essen (Germann football club) RWE Ralph Waldo Emerson RWE Rheinisch-Westfälische Elektrizitätswerke (German Power Supplier) RWE Read Write Execute RWE Right Wing Extremist Telliance AG announced today that they have executed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. to merge their German public access mobile radio networks, RegioNet and TERRAFON Bundelfunk, respectively. The combined network will provide service to nearly 30,000 business subscribers in 12 of Germany's 14 most important economic regions. Under the terms of the memorandum of understanding, Geotek and RWE Telliance AG will each hold 50% of the merged entity. The companies plan to build a digital network that will offer an integrated service offering of telephony and dispatch, messaging and mobile data applications. The companies expect to begin offering digital services in the second half of 1997. RWE Telliance is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of RWE, a $43 billion German conglomerate based in Essen, North Rhine-Westphalia North Rhine–Westphalia (nôrth rīn-wĕstfāl`yə), Ger. Nordrhein-Westfalen (nôrt`rīn-vĕst'fä`lən), state (1994 pop. 17,759,000), 13,111 sq mi (33,957 sq km), W central Germany. . In addition to interests in public access mobile radio, the company operates in different mobile telecommunications market segments and telecommunications consultancies and intends to become a major competitor to the Deutsche Telekom by exploiting the second largest fiber optic network in Germany. "We are very excited to join forces with RWE, which is emerging as a major force in the German telecommunications market," said Yaron Eitan, President & 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. , Geotek Communications, Inc. "Together we plan to roll out a digital network that will offer German businesses a competitive edge by improving their efficiency -- an invaluable foundation for long-term growth." "RWE and Geotek will bring a very powerful service offering to the German business community," said Mr. Schwarzmann, Executive Member of the Board of RWE Telliance. "We are very impressed by Geotek's advanced technology and differentiation and plan to build a very successful business here in Germany." The parties are now engaged in comprehensive business planning and expect to reach a definitive agreement by the summer of 1996. The transaction is subject to, among other things, the completion of satisfactory due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , regulatory approvals, approval by each company's board of directors and the negotiation and execution of definitive agreements. Geotek Communications, Inc. is a rapidly growing international provider of integrated voice and data solutions for mobile business users. In the United States, the Company focuses on wireless communications for small-and-medium-sized businesses which require real-time "integrated" communications to manage their fleets. Geotek currently offers commercial services over its FHMA FHMA Frequency Hopping Multiple Access FHMA Family Housing Management Account FHMA Florida Hotel and Motel Association (now Florida Lodging Association) FHMA Frequency Hop Multiple Access based networks in three major markets--New York, Philadelphia and Washington, D.C. and will expand to over 35 major U.S. markets by the end of 1997. CONTACT: Geotek Communications, Inc. Randy Miller 201/930-9305 or Morgen-Walke Associates Andrea Mabel 212/850-5600 or MEDIA CONTACTS: Morgen-Walke Associates, Inc. Lee Foley/Gina Gardner (national/financial press) 212/850-5600 or Edelman Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Alan Penchansky (technology/industry/trade) 212/704-8285 |
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