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SOUTHNET CORPORATION ENTERS FINAL AGREEMENT TO COMBINE WITH TELECOM AMERICA

 SOUTHNET CORPORATION ENTERS FINAL AGREEMENT
 TO COMBINE WITH TELECOM AMERICA
 TAMPA, Fla., April 29 /PRNewswire/ -- Southnet Corporation (OTC, PHLX: SN) and Telecom America, Inc. announced today that the companies have entered into a final agreement to combine the two firms.
 Southnet, a publicly held telecommunications long distance company, will acquire 80 percent of the shares of Telecom America in a share exchange valued by the companies at $3.4 million.
 Southnet Corporation, headquartered in Tampa, Fla., maintains long distance network, switching and billing/collection operations in Florida and 14 other states in the eastern half of the United States. Telecom America provides marketing and sales of long distance services in the areas that Southnet operates. Telecom America's customer base of 6,700 pay telephones and more than 90 hotels represents a 200 percent increase in Southnet's current customer level.
 Southnet's projected gross revenues for the first six months of operations through March 31 is approximately $2.5 million. The company has estimated its year end (Sept. 30) gross revenues at $6 million which compares with $2.8 million in 1991. The acquisition of Telecom America along with Southnet's current customer base is anticipated to generate annual revenues of $14 million in the first year of combined operations.
 Under the terms of the acquisition, scheduled to take effect within the next week, Southnet Corporation's board of directors will be restructured to include Ron Morris and Larry M. Levine, principal shareholders and officers of Telecom America. The restructure will also transfer all technical operation activities of Southnet Corporation to its wholly owned subsidiary, Southnet Services, Inc. Telecom America, Inc. will remain intact as the marketing/sales subsidiary of Southnet Corporation.
 Further details will not be available until after the acquisition takes effect.
 -0- 4/29/92
 /CONTACT: Robert J. Zradicka of Southnet Corporation, 813-287-2880, or Ron Morris of Telecom America, 305-931-5443/ CO: Southnet Corporation; Telecom America, Inc. ST: Florida IN: TLS SU: TNM


EA-BN -- AT013 -- 4427 04/29/92 13:19 EDT
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Publication:PR Newswire
Date:Apr 29, 1992
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