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SOUTHNET AGREES TO ACQUIRE FONE AMERICA

 SOUTHNET AGREES TO ACQUIRE FONE AMERICA
 TAMPA, Fla., June 19 /PRNewswire/ -- Southnet Corporation


(OTC, PHLX: SN) and Fone America, Inc., announced today that they have entered into two agreements allowing Southnet Corporation to acquire Fone America.
 The first agreement turns over management control of the assets and operations of Fone America to Southnet Corporation. The second is an agreement whereby Southnet Corporation will acquire Fone America and its assets in a transaction valued by the companies at $7.5 million. The transactions are subject to approval by both of the companies' board of directors. Fone America, Inc., a $15 million provider of operator services, filed for bankruptcy protection on June 5. The agreements will be filed with the U.S. Bankruptcy Court on Monday, June 22.
 Southnet Corporation, a Florida-based operator services/telecommunications organization, only recently concluded the acquisition of Telecom America, Inc., a similar company also based in Florida. The new organization combined with the resources of Fone America will result in a national company doing business in 33 states having projected annual revenues of $24-26 million.
 According to Robert J. Zradicka, president of Southnet: "Fone America represents a superb value to our shareholders as the purchase represents a natural complement to all we have developed in the southeast U.S. Fone's network and switching operations expand our capabilities quickly and efficiently. The Fone America customer base will place us in the unique position of being the largest profitable alternative operator services provider in the business. We believe that this acquisition will be the platform for significant growth of new business in all our markets. We will work with Fone and their customers throughout the remaining days of Fone's bankruptcy proceedings in order to trim costs, manage the debt and combine the operations. The net result will be a 'win-win' for everyone."
 Southnet Corporation is publicly traded on the Philadelphia Stock Exchange under the symbol "SN."
 -0- 6/19/92
 /CONTACT: Robert J. Zradicka of Southnet, 813-287-2880/
 (SN) CO: Southnet Corporation; Fone America, Inc. ST: Florida IN: TLS SU: TNM


EA-BN -- AT006 -- 2031 06/19/92 15:55 EDT
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Publication:PR Newswire
Date:Jun 19, 1992
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