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SOUTHNET CORPORATION ENTERS INTO FORMAL LETTER OF INTENT

 SOUTHNET CORPORATION ENTERS INTO FORMAL LETTER OF INTENT
 TAMPA, Fla., March 9 /PRNewswire/ -- Southnet Corporation (OTC, PHLX: SN) announced today that it has entered into a formal letter of intent with Telecom America, Inc. to acquire Telecom America under a plan of reorganization.
 According to a company spokesman, the acquisition will generate $10 million annually of new business to Southnet Corporation. Southnet currently is operating at or near $4 million annual revenues.
 Under the letter of agreement, all major terms and conditions have been agreed to by the directors of both companies' board of directors. A final agreement is anticipated to be completed by March 16.
 Southnet Corporation is a Florida-based long-distance carrier specializing in providing operator services to the hotel, health care and pay telephone industries. The company is licensed to operate in 13 states. Southnet's stock is publicly traded on the Philadelphia Stock Exchange and the Over-the-Counter markets.
 Telecom America, Inc. is a major marketer of long-distance services and maintains an active customer base which will be redirected to Southnet's network center. Telecom markets directly and through an agent network to the hotel and pay telephone industries.
 The company estimates the value of the purchase at $2.5-$3 million but cautions that this is a management assessment and is pending review and opinion of an outside audit firm.
 No further details are being released until completion of the final documents.
 -0- 3/9/92
 /CONTACT: Robert J. Zradicka, president and CEO of Southnet Corporation, 813-287-2880/ CO: Southnet Corporation; Telecom America, Inc. ST: Florida IN: TLS SU: TNM


BN-BR -- AT005 -- 6294 03/09/92 10:15 EST
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Publication:PR Newswire
Date:Mar 9, 1992
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