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 DALLAS, Sept. 30 /PRNewswire/ -- Value-Added Communications, Inc. (NASDAQ: VACI) announced two pending acquisitions and a new contract which will increase annualized revenue by more than $30 million. These transactions are expected to increase VACI's total annualized revenue as of January 1, 1994 to more than $100 million, with a positive impact on earnings.
 In addition, Value-Added said that it is entering a new business -- establishing networks of Automated Teller Machines (ATMs) and other financial transaction terminals.
 The Company also announced the relocation of its headquarters to Dallas from Oakbrook Terrace, Illinois and the consolidation of its Plano, Texas operations into a new facility. These moves are expected to produce a non-recurring charge of approximately $0.02 to $0.03 per share in the third quarter ending September 30, 1993.
 Dennis Casey, VACI Chairman and CEO, stated, "With these developments and the recent acquisition of Global Reservations, Inc. (Global Res), Value-Added is creating new profit centers, streamlining operations and positioning itself to be a growing force in specialized communications and transactional services."
 Acquisitions: Value-Added has signed letters of intent to acquire SelecTel Corporation of Irvine, California and Standard Telecom, Inc. of Oakbrook Terrace, Illinois. Terms of the transactions were not disclosed.
 SelecTel manages and maintains facilities and communications equipment used by the Army's and Navy's centralized lodging reservation systems. Standard resells long distance (1+) telephone services to large corporations and buying groups.
 Mr. Casey commented that, "These acquisitions are particularly attractive because SelecTel and Standard have a complementary customer base and, through combination, can benefit from lower transmission costs and other operational economies."
 As a consequence, Value-Added will not proceed with a proposed acquisition of Thrifty Tel of Anaheim, California, another 1+ reseller, as previously announced. Value-Added had loaned Thrifty Tel $400,000 pending the acquisition which VACI expects to be repaid.
 Contract: Value-Added has signed a new contract, effective October 1, 1993, with National Operator Services, Inc. (NOS) of Bethesda, Maryland. This contract, which includes all NOS's existing business with VACI, will add more than $9 million in annual revenue.
 In addition, NOS has agreed to act as Value-Added's exclusive national distributor for the hospitality industry. NOS resells VACI's operator assisted (0+) long distance service and has added more new hospitality properties for VACI in the last year than all agents combined.
 New Business -- ATMs: Value-Added plans to target the hospitality market, including VACI's existing 0+ customer base. Extensive operational issues concerning network, banking and processing relationships have all been resolved, and a number of trial installations have been successfully completed. Service will be expanded to several major hotel properties in the coming weeks.
 Mr. Casey added that, "Initial reaction of our hotel customers has been extremely positive. While banks, as the primary providers of ATMs, focus on local customers, VACI is focusing on the special needs of the business and vacation traveler."
 To develop this business, Value-Added has named Reed Hancock as Senior Vice President. Mr. Hancock is the former General Manager of Valley Electronic Services, Inc. (VESI) of Las Vegas, which was recently acquired by Bank of America. At VESI he was responsible for ATM deployment throughout Nevada, primarily in large hotels and casinos.
 To add further emphasis to this important new aspect of VACI's business, Mr. Richard Taggart has been added to VACI's Board of Directors. Mr. Taggart was formerly the President and CEO of VESI and a Senior Executive Vice President at Valley Bank of Nevada. He is also a founder and past Chairman of the Board of the Plus ATM Network, as well as a former Board member of the STAR ATM Network.
 In another development, several new employees have been hired to complete VACI's financial staff, including M. Beth Thompson (CPA) who was named Vice President and Controller. Ms. Thompson joined Value- Added from the Arthur Anderson accounting firm where she served several large public companies.
 On August 13, 1993, VACI acquired Global-Res, Inc. of Scottsdale, Arizona. Global-Res provides domestic and international reservation services to the lodging industry under an exclusive contract with Holiday Inns Inc.'s Res-Com, Inc.
 Value-Added Communications, Inc. (NASDAQ: VACI) is a communications company specializing in the processing of operator assisted long distance calls, financial transactions and hotel reservations. VACI's customers are primarily correctional facilities and hotels, but also include resorts, universities, hospitals, military bases, truck stops and pay telephones.
 -0- 9/30/93
 /CONTACT: Dennis R. Casey, CEO, or David R. Henkel, CFO, Value- Added Communications, 214-447-6700; or Gary Fishman or Lawrence Rosenbloom, The Hudson Stone Group, 212-983-8550/

CO: Value-Added Communications, Inc.; SelecTel Corporation; Standard
 Telecom Inc. ST: Illinois, Texas IN: TLS SU: TNM

LG -- NY010 -- 7351 09/30/93 13:59 EDT
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Publication:PR Newswire
Date:Sep 30, 1993

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