No Borders, Inc. Concludes Agreement with Mexican Federation of Hometown Associations for Affinity Card.
Hometown Associations are comprised of individual members residing in very specific areas of the United States who have emigrated from particular communities outside of the United States. There are close to 700 Mexican Hometown Associations, with membership representing hundreds of thousands of immigrants from Mexico. Seven additional Federations related to the Mexican State of Michoacan are located in seven other areas in the United States. In general, the mission of a Hometown Association is to provide assistance to their membership directly and indirectly by, among many things, helping to maintain the fabric of their membership's cultural heritage, providing economic support to their local communities and to the corresponding communities back home and facilitating communication with family members back home.
No Borders is in the business of providing a debit and stored value card platform through which a variety of financial and commercial services and products can be offered to residents of developing countries and to immigrants from those countries that reside in the United States and send money back home on a regular basis. No Borders offers significantly lower cost money transfers and long distance telephone services, with its initial focus on Mexico and El Salvador. According to the Federal Reserve Bank of Dallas, Mexican immigrants in the U.S. sent back to Mexico an estimated $13.3 billion in 2003, and as of March 31, 2004, the numbers increased by 22% when compared to the same three month period in 2003. The Company believes that it will accelerate its penetration into this growing market, first by reducing the excessive costs currently charged to the consumer, and second by offering a full range of financial and commercial services and products to this emerging transnational market, at significantly lower prices. The Company also believes that penetration will be accelerated by supporting the local communities in which constituents of this emerging market reside.
Jorge Hinojosa, Vice President of Business Development of No Borders states: "This is the first of many agreements we intend to conclude with Federations of Hometown Associations whose members are comprised of immigrants from all of the Latin American countries we service now and in the future. Our Affinity Card Program allows us to introduce to a vast consumer base, at a grass roots level, the benefits offered through our debit and stored value card and platform. The Program also will give participating Federations additional assets which they will use to enhance their ability to satisfy their very important mission. No Borders was founded with the premise that a for profit entity can, by lowering costs through the use of creative and efficient models and technologies, result in the economic enrichment of our targeted underserved transnational communities. We believe that our affiliation with Hometown Associations will play a significant role in the acceleration of our penetration into this market, which in turn should result in the overall economic growth of these communities."
For further information, contact Al Kau, Investor Relations in California at (888) 795-3166.
Certain statements in this release and other written or oral statements made by or behalf of the company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the company's services and projects and the company's continued access to capital and other risks and uncertainties outlined in its filings with the Securities and Exchange Commission, which are incorporated herein by reference. The actual results the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.
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|Date:||Nov 10, 2004|
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