Telesource International, Inc. Clinches Agreement on Long-Term Power Generation Contract for Fiji Power Plants.Business Editors LOMBARD, Ill.--(BUSINESS WIRE)--May 5, 2003 Telesource International, Inc. (www.telesource.org) announced today that a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Telesource, Telesource Fiji, Limited ("TFL TFL, n tensor fascia lata; a muscle that originates from the anterior superior iliac spine and anterior portion of the iliac crest. Its primary functions include flexing and abducting the thigh. ") has finalized the agreement for the takeover of the operation and maintenance for two power plants located in Kinoya and Vuda, Fiji with an option to Telesource to takeover the operation of the power plant located in Labasa, Fiji. Telesource is to takeover the operation of a 45.5 mega-watt ("MW") power plant located in Kinoya and a 20 MW power plant in Vuda under an energy conversion agreement ("ECA ECA See: Export Credit Agency ") with the Fiji Electric Authority ("FEA (Finite Element Analysis) A mathematical technique for analyzing stress, which breaks down a physical structure into substructures called "finite elements." The finite elements and their interrelationships are converted into equation form and solved mathematically. ") for 20 years beginning in June 2003. Telesource will continue to evaluate its option to takeover the operation and maintenance of the 12 MW power plant in Labasa. Telesource has completed an agreement with the employees to be transferred to Telesource in connection the take over of Kinoya and Vuda. In furtherance fur·ther·ance n. The act of furthering, advancing, or helping forward: "Pakistan does not aspire to any . . . role in furtherance of the strategies of other powers" Ismail Patel. of its policy of employing local labor and bringing jobs to its local markets, Telesource has agreed to employment contracts to existing FEA employees on terms and conditions equal to or greater than their current arrangement with the FEA. Telesource will be taking on the new employees without any obligation for employment issues prior to the date of hire by Telesource. Telesource International's Chief Executive Officer, K.J. Semikian, stated, "After extensive negotiations, all conditions precedent contained in the Agreement have been met and Telesource is poised to take over the operations and maintenance of the power plants in late May, this year. We are extremely pleased to be awarded this contract which gives Telesource a firm long-term presence in Fiji. This Agreement adds 65.5 MW of generation capacity to our portfolio over the next 20 years, with an option to takeover an additional 12 MW at Labasa. We now have a greater geographic balance for Telesource within the Pacific region. This Agreement also marks a milestone achievement in Telesource's business plan of adding 50 MW to our portfolio each year. Telesource will bring the efficiencies of the private sector to the Fiji and will allow the FEA to purchase less costly power at extremely high levels of availability. This is a win win Agreement and goes to show how privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned of power makes good sense." About Telesource International Telesource International is a global company located in Lombard, Illinois Lombard, "The Lilac Village", is a suburb of Chicago in DuPage County, Illinois. The population was 42,322 at the 2000 census. The United States Census Bureau estimated the population in 2004 to be 42,975. . Telesource International effectively utilizes its subsidiaries to offer utility services, specialized construction and engineering services, project development and management, and plant operations. Telesource and its subsidiaries have offices in the Chicago area, on the Western Pacific islands of Tinian and Saipan, Guam and Palau and offices on the South Pacific island of Fiji. The Company's home page is at http://www.telesource.org. Certain of the statements made in this press release are 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. within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and other factors that could cause or contribute to actual results differing materially from such forward-looking statements are discussed in greater detail in the Company's Securities Commission filings. |
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