Ursus Secures Global Presence in 30 Airports, Ports and Universities; Ursus
Acquisition of LAE Creates Worldwide 'Click & Mortar' Distribution Network For
StreamCards
SUNRISE, Fla.--(BUSINESS WIRE)--June 7, 2000--Ursus Telecom (Nasdaq:UTCC)
announced today it's presence in airports and high traffic locations
throughout the world through the acquisition of Latin American Enterprises
(LAE) of Miami, Florida, a global specialist in airport and other
transportation marketing.
Foreign Airport locations include: Argentina, Brazil, Colombia, Spain,
Peru, Chile, Dominican Republic, Puerto Rico, Guatemala, Bolivia, and Uruguay.
Some country locations include multiple airports in major cities.
Domestic locations include: Miami, Orlando, Pittsburgh, Rhode Island, New
York, Key West, and the University of Central Florida.
Many of the foreign airport locations are attractive manned kiosks in
high traffic areas located in international terminals, and most are exclusive
arrangements by contract with local airport and transportation authorities. In
addition to the manned airport kiosks there are hundreds of vending machines
at strategic sales locations, and several full service business centers are
under construction.
Latin American Enterprises is a Florida based corporation whose foreign
subsidiaries have contracts with airport and transportation authorities
throughout the world. Based on unaudited revenues of $9.3 million and EBITDA
of over $0.7 million on its own in 1999, the company expects the consolidated
operations to contribute significantly to revenues and earnings for its
current fiscal year. In addition to its normal business, LAE sold
approximately $2 million of PINS to the Florida Lottery Commission earlier
this year. Revenue for this sale will be recorded when the lotto game's
scratch-off pins are either used or expire on their terms.
Mr. Juan Pino, LAE's CEO, will be named Vice President of Distribution
Channels for Ursus and remain in charge of the Airport and Transportation
sector. Mr. Pino will be also be perfecting the integration between the
Company's e-business and tangible distribution marketing channels on a global
basis.
"This is the perfect marriage between clicks and bricks," said Juan Pino,
VP of Distribution Channels for Ursus, "dramatically expanding the
opportunities for creating sales and enhancing brand awareness. We truly have
a synergy here that would be difficult to develop organically and almost
impossible to duplicate."
Ursus Telecom's Stream marketing unit will brand cards sold to travelers
as StreamCards(TM) and process calls from UTCnet, the Company's global phone-
to-phone VoIP network. Beginning in July, 2000, all StreamCards will be
rechargeable at theStream's e-business unit at www.thestream.com. Travelers
who purchase cards at airports will be offered special promotions for all of
the products and services offered on-line when they re-charge, including local
long distance services throughout Latin America and the rest of the world.
"The addition of physical points of presence to our marketing vision adds
a dimension that cannot be achieved by e-commerce on its own," commented Luca
Giussani, CEO of Ursus, "and we expect to capitalize on the effect of
combining this unique sales model with our e-business initiatives to create a
global 'Click & Mortar' distribution network."
TheStream intends to install internet terminals at its kiosks at key
airport locations to introduce on-line re-charging and allow web access to
travelers for free. Discussions regarding the value of this opportunity are
currently underway with ISPs in Latin America and the USA, as the Company
feels this potential may have joint venture possibilities.
"The airport distribution centers account for nearly 10,000 square feet
of signage viewed by millions of visitors each month", said Jay Chavez, Vice
President of Worldwide Internet Services, "which by my calculations makes this
acquisition viable on the advertising value alone. The value to theStream is
tremendous, and should add revenue generating growth opportunities we see
immediately. This puts us in an entirely different league."
The acquisition was made for $1.3 million comprised of cash and notes,
200,000 warrants to purchase common stock at $15.50, and 450,000 shares of
unregistered Ursus common stock. The acquisition will be will be recorded
using the purchase method of accounting. The official closing of the
transaction is expected within a few weeks pending regulatory approvals.
ABOUT URSUS TELECOM
Ursus Telecom Corporation is a global Next Generation Telephone company
that provides international services, including VoIP, long distance, direct-
dial, value-added and Internet-based services to more than 4,000,000 customers
-- individuals, businesses and carriers --worldwide. The Company operates
directly and through a network of agents on five continents and over 45
countries that account for more than 80% of the World's International traffic.
Ursus Telecom operates a network of Carrier-Class VoIP gateways, switching
facilities and points of presence in Sunrise Florida, Frankfurt, Lima, Buenos
Aires, Johannesburg, Prague and Tokyo. Ursus Telecom is the source of
theSTREAM.com.
Together with theSTREAM.com as the Company's global marketing and
provisioning mechanism, Ursus believes it is well positioned to prosper in the
next generation of services which combine the Internet, telephony, fax, data
and video services into a single broadband platform offering a rich multi-
media experience to its customers throughout the world.
Statements in this news release that relate to future plans, financial
results or projections, events or expected performance in future periods are
forward-looking statements and fall within the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. While management wishes to
provide readers with reasonable opinions and viewpoints with respect to the
Company's progress, marketplace acceptance, business opportunities, and fiscal
performance, such statements, opinions and viewpoints are forward-looking and
involve risks and uncertainties, including risks of changing conditions in the
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overall economy, the capital markets, the computer and telecommunications
industries, as well as risks of changing consumer demand and the success of
the Company's business strategies and other factors detailed in the Company's
annual and other reports filed with the Securities and Exchange Commission.
