RSL Communications to Realize Estimated $300 Million in Revenue From Commercial Agreement With Largest European Cellular Reseller.HAMBURG Hamburg, city, Germany Hamburg (häm`b rkh), officially Freie und Hansestadt Hamburg (Free and Hanseatic City of Hamburg), city (1994 pop. , Germany and NEW YORK--(BUSINESS WIRE)--Feb. 2, 1999-- Debitel to Resell 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. Global Network in Germany, Europe's Largest Telecom Market RSL Communications, Ltd. (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 : RSLCF), today announced that its subsidiary, RSL COM Deutschland GmbH and Debitel Kommunikationstechnik GmbH & Co. KG, Europe's largest mobile reseller company, have agreed that Debitel will utilize RSL COM's fixed wire network for new services that it will be promoting to German consumers using its proven successful marketing force. The deal is estimated at $300 million in revenues to RSL COM over three years and is the largest commercial relationship entered into by RSL COM since it was founded in 1994. Debitel was formed in 1992 by Metro Holding AG, Europe's largest and the world's second largest wholesale and retail management company, and Debis (Daimler Benz) and has nearly 3 million customers. Metro Holding is a significant shareholder in Debitel and holds more than six percent of the outstanding shares of RSL Communications, Ltd. As a result of the joint venture agreement between RSL COM and Metro Holdings, Metro Holdings' subsidiaries have begun seeking ways to promote and market RSL COM services. The Debitel agreement is the most recent and potentially largest result to date of the Metro/RSL COM joint venture. Itzhak Fisher, President 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. of RSL Communications, said, "When we entered into our joint venture with Metro, the most powerful and highly respected trading group in Europe, it was intended to give RSL COM access to a wealth of customers through a variety of distribution channels and to build relationships with Metro's strategic partners. The results are beginning to show. The selection of RSL COM by Debitel is a strong endorsement of the quality of our fixed wire network. The agreement with Debitel, having resulted from the Metro relationship, is a strong endorsement of RSL COM's strategy to generate significant revenues by attracting customers through nontraditional distribution channels. These customers can now utilize the vast pan-European telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. that RSL COM has built." Lutz Meyer-Scheel, Chief Executive Officer of RSL COM Deutschland GmbH said, ARSL ARSL Association of Rural and Small Libraries ARSL Atmospheric Remote Sensing Laboratory COM's agreement with Debitel may represent one of the largest telecommunications marketing transactions in Germany since Germany underwent deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. early last year. In addition, this is the first time that a fixed wire carrier and mobile provider have converged to provide residents of Germany with a full menu of telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. . With the assistance of Debitel, Germany's largest cellular reseller, RSL COM is now positioned to be a major telecommunications force in Germany and throughout Europe." Dr. Joachim Dreyer, Chief Executive Officer of Debitel, said, "Debitel's agreement with RSL Communications represents a milestone in the German telecommunications marketplace and brings our relationship with RSL COM to the next level. Debitel's portfolio of services will now be greatly increased. This is the most significant cooperation thus far between a cellular reseller and a fixed-wire carrier." The first product to be offered by Debitel utilizing RSL COM's fixed network will be open Call-by-Call (no registration necessary), which is anticipated to be introduced on February 3rd under Debitel's brand name. The service will be handled by RSL COM Deutschland's national telephone network. Other services to be provided by Debitel in the future are expected to utilize the RSL COM international network, RSL NET, in addition to the network of RSL COM Deutschland. RSL COM Deutschland GmbH, with headquarters at Frankfurt/Main (Germany), was founded in May 1996. Its services include Call-by-Call, Pre-selection and cellular phone services It is a subsidiary of RSL Communications, Ltd. a global facilities-based telecommunications company See telecom company. with operations on four continents in 21 countries that account for more than 70 percent of the world's telecommunications traffic. The subsidiaries are connected by RSL NET, an 83,000 kilometer global telecommunications network. In November 1998, the Company was named by "Business Week" as one of the top ten growth companies of its INFO TECH 100. Also in November, "Communications Week International" named RSL Communications one the top 50 international carriers. This press release contains 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, and are subject to the safe harbors 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. created hereby. Investors are cautioned that any such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are not guarantees of RSL COM's future performance and involve risks and uncertainties, and RSL COM's future actual results could differ materially from the forward looking statements discussed herein as a result of various factors. A list of certain factors that could cause actual results to differ materially from those discussed herein can be found in the documents the company files with the SEC, including those contained in RSL COM's registration statement, and Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1997. Note to Editors: "RSL COM" is a licensed trademark. It includes capital letters separated by a space. To protect our trademark, please use its legally approved form: RSL COM. |
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