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EXHIBIT 99.1
RSL COM TO FOCUS ON EUROPE AND U.S. FOR GROWTH; RSL COM TO DISPOSE OF HONG KONG,
JAPAN AND CANADIAN OPERATIONS
Hamilton, Bermuda and New York - July 17, 2000 -- RSL Communications, Ltd.
(Nasdaq: RSLC) today announced that it would dispose of its operations in
Canada, Japan and Hong Kong.
Proceeds from the dispositions will be used to enhance RSL COM's core
businesses, primarily in Europe. As previously announced, the company is also
continuing to pursue the monetization of other non-core assets.
"We continue to implement our strategy of improving profitability, expanding our
data and Internet offerings and focusing on the rapidly growing communications
markets in Europe and the U.S.," said Itzhak Fisher, President and CEO of RSL
Communications, Ltd. "We are concentrating our efforts, resources and capital in
areas where we have the most synergies and greatest opportunities for
profitability. Today's announcement reflects our plan to discontinue
unprofitable operations and focus on the company's high growth businesses.
"We will continue to focus on our core markets, particularly in Europe,"
continued Itzhak Fisher. "We will invest in these markets, in a manner similar
to our previously announced acquisitions of network and Internet companies in
the United Kingdom, Switzerland and Finland."
In connection with this decision, RSL COM has taken a one-time, non-cash asset
write-down of approximately $48 million that will be reflected as a one-time
charge in the second quarter 2000 earnings. These three operations had annual
revenues of $52 million in 1999 and are estimated to have revenues for the six
months ended June 30, 2000 of $25 million, with substantially all of the revenue
being generated in Canada. The company expects to issue its earnings release for
the second quarter on August 3.
RSL COM has retained the services of the investment-banking firm, BMO Nesbitt
Burns Inc. to assist in the sale of the Canadian operations. The company will
operate and provide its high quality level of service in Canada during this
period.
On July 4, 2000, shareholders of Seat Pagine Gialle Spa. (SEAT), Italy's
publisher of telephony directories and leading Internet player, voted to approve
its previously announced joint venture with RSL COM and related agreements for
the purchase of Telegate Holding, an indirect subsidiary of RSL COM and the
holding company for shares in telegate AG (telegate).
The total consideration RSL COM will receive as a result of the transaction will
be between 415 million Euros and 525 million Euros depending on the average
price of a telegate share. RSL COM acquired its stake in telegate in July 1998
for approximately US$33 million.
RSL Communications, Ltd., is a facilities-based communications company that
provides a broad range of data and Internet, voice and value-added service
solutions primarily to small and medium sized businesses and residential
customers in selected markets around the globe. Through its subsidiary,
deltathree.com, RSL COM also owns and operates a privately managed Internet
Protocol telephone network with 71 points of presence in 36 countries. For
additional information on RSL Communications, Ltd. visit the website at
http://www.rslcom.com
Contacts:
Nesbitt Burns Graeme Falkowsky
Tel: +1 604 443-1433
Investor Relations: Kathy Makrakis
Tel: +1 212 445-7463
E-mail: [email protected]
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Press: Alan Garratt
Tel: +1 212 445-7438
Fax: 646-710-5917
E-mail: [email protected]
