Geotek Responds to Inquiries on Stock Price During Quarterly Conference Call with Analysts & Investors.MONTVALE, N.J.--(BUSINESS WIRE)--Nov. 12, 1997--Geotek Communications, Inc. (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 :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),Chairman 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. , Yaron Eitan, made the following statements, in response to investor inquiries on stock price, during the company's quarterly conference call with analysts and investors: "We have turned an important corner in our development, having concluded our third consecutive quarter of accelerated subscriber growth . We are now beginning to see a rise in the number of satisfied customers and they are deriving real value from our mobile business solutions. Improvements in product stability, new operating procedures and the start of direct selling Direct selling is the marketing of products or services to consumers through sales tactics including presentations, demonstrations, and phone calls. It is sometimes also considered to be a sale that does not utilize a "middle man" such as a retail outlets, distributors or brokers. activities, have all contributed to this increase. "Since the beginning of the year, network reliability has improved steadily to the point where we are now experiencing system availability rates of between 99.6 and 99.7 percent. We anticipate reaching levels of 99.9 percent, as we continue to focus on network management and operations. "As with any wireless company, coverage is a priority. Geotek is currently in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of a major construction program to enhance and expand its coverage in all markets. We expect to add as many as 90 new cell sites, nearly doubling the number of existing sites, by the end of the first quarter 1998. "Over the past two months, Geotek has seen a significant increase in selling activities. The company recently launched three new markets, San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , Houston and Phoenix, and added a number of nationally recognized businesses to the Geotek client roster. The company also completed the first phase of hiring and training of its direct sales force, and believes that it will see a stronger contribution from their activities this quarter. "Other major milestones achieved recently include receipt of the first 900 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. 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 (R) base stations from Hughes Network Systems Hughes Network Systems, LLC (HNS), is a provider of broadband satellite network products for businesses and consumers. HNS pioneered the development of high-speed satellite Internet access services and IP-based networks with its original DirecPC service but which it now markets , and the commencement of field testing for the new FHMA(R) portable subscriber unit A Subscriber Unit, or SU is a broadband radio that is installed at a business or residential location to connect to an Access Point to send/receive high speed data wired or wirelessly. Devices commonly referred to as a Subscriber Unit include cable modems, mobile phones, etc. . The company also delivered an 800 MHz FHMA(R) network to Korean partner Anam Telecom, which resulted in the successful launch of the first all digital FHMA(R) wireless network system in Seoul, South Korea. "Geotek will continue to focus on its core FHMA wireless activities, as evidenced by the recent sale of Bogen." Eitan also noted that the Company had a total of $171.5 million in available capital, lines of credit and pending transactions as of 9/30/97, including $33 million in cash, a $20 million line of credit, up to $100 million in vendor financing Vendor Financing The lending of money by a company to one of its customers so that the customer can buy products from it. By doing this, the company increases its sales even though it is basically buying its own products. from Hughes Network Systems, as well as $18.5 million in cash from the sale of Bogen Communications International. Geotek Communications, Inc. is an international provider of mobile business solutions, services and digital wireless communications products and technologies. The company owns interests in and operates mobile networks in the United States, Korea, Canada, the United Kingdom and Germany. The company also develops, manufactures, markets, licenses and supplies communications systems based on its proprietary FHMA(R) technology. For more information on Geotek, visit our web site (www.geotek.com). -0- This report contains certain "forward-looking" statements. The Company desires to take advantage of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and is including this statement for the express purpose of availing itself of the protections of such safe harbor with respect to all of such forward-looking statements. Examples of forward-looking statements include Company projections with respect to: a) the commercial implementation, scale up and operation of its US Network, the timing of the roll-out of its US Network and growth in its subscriber population; b) the Company's future financial results, capital needs, sources of financing and economic conditions in markets the Company serves; c) the Company's prospects in foreign countries, including its ability to successfully manufacture sufficient quantities of equipment in a timely and profitable basis and d) the effect of certain legislation and governmental regulations on the Company. The Company's ability to predict any such projected results or to predict the effect of any legislation or other pending events on the Company's operating results is inherently uncertain. Therefore, the Company wishes to caution each reader of this report to carefully consider the specific factors discussed with such forward-looking statements and contained in the Company's Annual Report on Form 10K for the year ended December 31, 1996 and most recent 10Q's as such factors in some cases have affected, and in the future (together with other factors) could affect, the ability of the Company to achieve its projected results and may cause actual results to differ materially from those expressed herein. FHMA(R) is a registered trademark of Geotek Communications, Inc. CONTACT: Geoteck Communications Inc., Montvale Randy Miller/Elysa Gonzalez Corporate/Investor Communications 201/930-9305 |
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