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WAVETECH, INC. ENTERS INTO LETTER OF INTENT TO ACQUIRE DOMINICAN REPUBLIC RESORT HOTEL AND CASINO

 CHERRY HILL, N.J., Oct. 13 /PRNewswire/ -- Wavetech, Inc. (NASDAQ: WAVE) (Wave) announced today that it entered into a letter of intent to purchase a resort hotel and casino in the Dominican Republic that is approximately 90 percent completed, and when and if completed, will consist of a 438-room hotel and a casino complex including approximately 29 acres.
 It has been represented to Wavetech, Inc. that approximately $10 million is needed to complete the construction, and although there is no assurance that the funding will actually be forthcoming, the funding has been represented to be in place at the time of the closing.
 It has also been represented to Wave that the assets being acquired are appraised in excess of $50 million with a first mortgage and total liabilities of less than $1.1 million. The casino is under contract to be managed by an internationally recognized casino management company. Wave would receive a 50 percent interest in the ownership and operation of the casino.
 The consideration for this acquisition shall be 80 million shares of restricted common stock and 40 million shares of preferred stock of Wave (which is convertible into approximately 8 million shares of common stock).
 The existing shareholders of Wave would have to incur a reverse stock split so that the existing shareholdings will be no more than 10 million shares (from the existing approximately 17 million shares).
 The entire transaction is subject to a definitive stock purchase agreement, due diligence, and approval by a shareholder's meeting of the transaction itself, to increase the authorized shares of common stock and to approve a new class of preferred stock as well as other restrictions and conditions.
 The entire transaction is also subject to the divestiture of Wave's two existing subsidiaries at terms and conditions to be finalized at the time of the entering into the definitive stock purchase agreement.
 After such shareholder's meeting, assuming the proposals are approved, old management would resign in favor of new management and a closing of this transaction will immediately take place.
 Since the transaction has only recently been negotiated and is subject to continued due diligence of the parties hereto, there is no assurance the transactions discussed above shall either be completed or not be substantially changed.
 /delval/
 -0- 10/13/93
 /CONTACT: Ralph Leporace of Wavetech, 609-486-9200/
 (WAVE)


CO: Wavetech, Inc. ST: New Jersey IN: LEI SU: TNM

MK-MP -- PH028 -- 1793 10/13/93 15:15 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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