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FONE AMERICA SIGNS LARGEST PRE-PAID CALLING CARD DISTRIBUTION CONTRACT IN U.S. HISTORY; ANNOUNCES PROFIT

 PORTLAND, Ore., Aug. 19 /PRNewswire/ -- Fone America Inc. (OTC Pink Sheets: 3FONA), a Portland-based interexchange carrier providing operator services, public pay telephone service, and a pre- paid discount calling card throughout the U.S. has announced a 3-year joint agreement with the Jubitz Corp. to distribute Fone America's pre- paid discount calling card to approximately 1,000 truck stops nationwide. The card, which has been private labeled "DriveLine" for the transportation industry, also includes specialized access features designed for truck drivers -- which are currently being offered through D.A.T. Services, a division of Jubitz. The card offers truckers a low- cost alternative to credit card and collect phone calls when they're "on the road" and will provide every cardholder/truckdriver with the ability to research specific geographic areas for available freight carrying opportunities so they may avoid costly "dead-heading" or returning home without freight.
 Peter H. Jacobs, president of Fone America, when announcing the signing of the deal, said, "It is the perfect alliance because it maximizes the unique capabilities of both the Jubitz Corp. and Fone America."
 Jeff Walton, product manager for the Jubitz Corp., says, "We've spent the better part of a year searching the country for the best national provider of prepaid discount calling card services to marry with our market-leading truckstop information network. We discovered Fone America to be both visionary and capable, and right in our own backyard. We're excited and ready to begin installing over 1,000 truckstop locations nationwide with our 'DriveLine' card."
 States David Gwyther, registered representative for local stock brokerage firm Blackwell-Suchy, "All the signs are there for Fone to become a new type of hybrid telephone company for the 1990's and beyond. Its management, guided by Fone America president and founder, Peter Jacobs, has proven Fone can leap to the front lines in the battle to dominate the prepaid calling card marketplace."
 The popularity of prepaid calling cards is now taking hold throughout the U.S. and is expected to match the high sales volumes currently realized in Europe and Japan. The cost per minute is greatly discounted over traditional calling cards and collect call alternatives because the pre-paid nature of the card eliminates bad debt and high collection costs.
 Fone America estimates it will generate revenues exceeding $25 million in 1994, $55 million in 1995, and $100 million in 1996 from its discount calling card division alone. It owns public pay telephones in New York City, New Jersey, and Long Island which it operates from its New York office. Fone also provides operator services to payphone owners and hotels nationwide from its 13,000 sq. ft. service facility in Portland.
 -0- 8/19/93
 /CONTACT: Peter H. Jacobs, president, of Fone America, 503-620- 2400; or Jeffrey Walton, product manager, D.A.T. Services, of Jubitz, 503-643-4331; or David Gwyther, registered representative, of Blackwell- Suchy, 503-223-3633/
 (3FONA)


CO: Fone America Inc.; Jubitz Corp. ST: Oregon, New York IN: TLS SU: CON

MN-JH -- SE009 -- 4488 08/19/93 16:38 EDT
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Publication:PR Newswire
Date:Aug 19, 1993
Words:501
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