I-Link's WorldxChange Subsidiary Completes Purchase Of RSL COM U.S.A.'s Enterprise Businesses.Business Editors/High-Tech Writers DRAPER, Utah--(BUSINESS WIRE)--Dec. 11, 2002 I-Link Incorporated ("I-Link") (OTC-BB:ILNK) today announced that its wholly-owned subsidiary, WorldxChange Corp. ("WorldxChange") has completed the purchase of the Enterprise and Agent business of RSL RSL - RAISE Specification Language COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. U.S.A., Inc. ("RSL"). The acquisition includes the assets used by RSL to provide long distance voice and data services, including frame relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. , to small and medium size businesses ("Direct" business), and the assets used to provide long distance and other voice services to small businesses and the consumer/residential market ("A&R" business), together with the existing customer base of the Enterprise and Agent business. WorldxChange paid a purchase price of $7.5 million, subject to certain closing balance sheet adjustments, and agreed to pay up to an additional $3.0 million on March 31, 2004, contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the achievement of certain revenue levels by the Direct business for the year 2003. RSL's revenue run rate, based on annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. current operations, is approximately $50 million. RSL had filed for bankruptcy on March 16, 2001 under Chapter 11 of the Bankruptcy Code Bankruptcy Code may refer to:
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . The Bankruptcy Court approved the acquisition, which was also subject to the approval of the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. and various state public utility commissions. RSL's A&R business is a natural fit with WorldxChange's current business strategy and the migration of its existing traffic to WorldxChange's network is expected to be significantly accretive. RSL's customers will benefit from WorldxChange's network coverage and international routing capabilities. RSL's Direct business represents a strategic expansion of WorldxChange's customer channels. The migration of the Direct voice traffic to WorldxChange's network is also expected to be accretive, while the Direct data network will be a new area of focus for WorldxChange. This new channel has the potential to add significant value to the Company due to the long-term nature of the Direct customer contracts. WorldxChange will retain the Direct business value proposition of superior customer care and customized solutions. The RSL transaction is an excellent example of WorldxChange's strategy of making "bolt-on" acquisitions that will increase the utilization of its network capacity and consequently be accretive to earnings. Allan Silber, Chairman of I-Link's board of directors, said, "The sale of our I-Link Communications Inc. business, which was announced a few days ago, allows us to concentrate on building WorldxChange as well as pursue licensing opportunities for our VoIP patents and technology. WorldxChange's RSL acquisition will make a significant contribution to earnings and cash flow." Forward-Looking Statements The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address I-Link's expectations as a result of the purchase, should be considered as forward-looking statements. Such statements made by I-Link are based on knowledge of the environment in which it currently operates, but because of the factors herein listed, as well as other factors beyond the control of I-Link, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. About I-Link Incorporated Headquartered in Draper, Utah Draper is a city in Salt Lake County and Utah County, Utah, United States, located about 20 miles south of Salt Lake City along the Wasatch Front. Between 1990 and 2000 Draper was Utah's fastest-growing city over 5,000 people (as of 2000). , I-Link Incorporated (OTC-Electronic Bulletin Board: ILNK) has developed a proprietary, software-defined communications platform which unites traditional telecommunications capabilities with data Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (IP) systems to converge telecommunications, wireless, paging, voice-over-IP (VoIP) and Internet technologies. Through its subsidiary, WorldxChange Corp., I-Link provides international and domestic long distance services. For further information, visit I-Link's website at www.i-link.com. About WorldxChange Corp. Headquartered in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. , WorldxChange Corp. is a facilities-based communications carrier that provides international and domestic long-distance services. WorldxChange has on-net coverage in most of the US Local Access and Transport Areas, and has points of presence in over 30 US cities and 10 switches in seven US cities. The Company backbone is comprised of circuits from a variety of vendors. In addition to providing discounted long distance services to both residential and small business customers, including "1+" and "dial-around", WorldxChange offers a multi-level marketing program. For further information, visit WorldxChange's website at www.worldxchange.com. |
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