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THRIFTY TEL INC. ANNOUNCES $1.5 MILLION DEBT FINANCING AND INVESTIGATION OF POTENTIAL MERGER WITH VALUE-ADDED COMMUNICATIONS

 LOS ANGELES, April 1 /PRNewswire/ -- Thrifty Tel Inc. (NASDAQ: THRF), a long distance telephone service company, today announced that it has obtained debt financing of up to $1.5 million from Value-Added Communication Inc. (NASDAQ: VACI) in connection with the investigation of a potential business combination between the two companies. Under the agreement, Thrifty Tel will receive immediate short-term debt financing of $400,000 from Value-Added, granting Value-Added a six-month "first right of refusal" regarding a possible merger or acquisition of Thrifty Tel. During this six-month period, in which both companies will evaluate the desirability of consummating a business relationship, Thrifty Tel has agreed not to accept any competitive offer without first allowing Value-Added to match it. If both parties can agree to basic terms for a business combination as of May 1, 1993, Value-Added will loan the balance of the financing and the two companies will proceed with the preparation of definitive agreements.
 William J. Kettle, president of Thrifty Tel stated, "We are naturally pleased that a company like Value-Added, with its recognized niche in the telecommunications business, has recognized the strong business potential of Thrifty Tel. We believe that the arrangement, as outlined, is strategically beneficial for both companies. While Thrifty Tel has been operating profitably for the past 13 consecutive quarters, the many opportunities open to us for continued rapid growth makes it necessary for the company to find new sources of capital. Likewise, we believe that Thrifty Tel presents Value-Added with exceptional opportunities for the diversification of its business into related sectors of the telecommunications industry, as well as entry into the high-user-density area of Southern California."
 Added Kettle, "As enthusiastic as we are by Value-Added's interest in Thrifty Tel, it is important to keep in mind that to date no specific terms of a possible merger or acquisition have been discussed, and there is no assurance that a final definitive agreement will be consummated. It is the primary goal of Thrifty Tel's directors and senior management to maximize shareholder value, and that whatever decision is taken -- either to consummate a business combination or remain independent -- will be in response to that objective. We believe that the growth prospects for our discount long distance telephone services in California and other areas of the country are unlimited, and that any meaningful measure of the company's true worth must take those growth prospects into account.
 Thrifty Tel, headquartered in Garden Grove, Calif., has annualized revenues of approximately $20 million. The company provides discount domestic and international long distance telephone services through five regional sales and marketing operations in Southern California, and is certified by the California Public Utilities Commission.
 Value-Added, headquartered in Oakbrook Terrace, Ill., recently reported 1992 revenues of $50 million. The company provides automated call processing systems and related tracking, billing and collection services to customers such as hotels, universities and correctional facilities which offer telephone services to large numbers of users.
 -0- 4/1/93
 /CONTACT: Rebecca J. Bigley of Thrifty Tel, 714-740-2880/
 (THRF VACI)


CO: Thrifty Tel Inc.; Value-Added Communication Inc. ST: California, Illinois IN: TLS SU: TNM

JB -- LA017 -- 2060 04/01/93 13:20 EST
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Publication:PR Newswire
Date:Apr 1, 1993
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