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[LETTERHEAD]
Exhibit 99.1
For Immediate Release
TERAGLOBAL COMMUNICATIONS ANNOUNCES CORPORATE RESTRUCTURING TO FOCUS ON REVENUE
San Diego, California, June 6, 2000. TeraGlobal Communications Corp.
(NasdaqNM:TGCC) today announced that it is effecting a corporate restructuring
to focus the company's resources on revenue generation, following the release of
its TeraMedia 2.0 solution. The restructuring includes the retasking of select
employees to sales and support of the company's TeraMedia-TM- solution and an
immediate reduction of the work force by approximately 10 percent.
"We are committed to making the transition from a research and development
organization to a sales and marketing company," said David Fann, chief executive
officer. "Our core focus now is on leveraging the potential of our unique
technology and TeraMedia solution toward creating profitability and enhanced
value for our customers, employees and shareholders."
Fann added that elements of the restructuring plan include:
- The addition of two senior members to the sales organization. The new
managers are responsible for supervising sales to the government and
education markets.
- Placing supervision of all marketing activities under Robert Welty, vice
president of sales to facilitate alignment of the company's marketing and
sales efforts.
- Reassigning some of the technical staff to focus on quality assurance
testing, network design and installation of TeraGlobal's UCCA, and customer
service and support of the company's TeraMedia services product.
TeraGlobal employs approximately 70 persons primarily out of offices in San
Diego, California, Logan, Utah and Cambridge Massachusetts. The reductions were
targeted primarily in administrative positions.
TeraGlobal Communications Corp. is a communications technology company. The
company has developed a next generation network -- the Unified Computing and
Communications Architecture -- that combines data with traditional communication
networks, such as the telephone and video collaboration, over a single network.
TeraGlobal's TeraMedia-TM- software-based solution guarantees real-time, two-way
simultaneous voice, video and data-based communication and collaboration over a
single high-speed network saving customers time and money, enhancing workflow
efficiency and personal productivity.
Contacts: TeraGlobal Corporate Relations Pondel/Wilkinson Group
Darren Seed (investors) Corporate and Investor Relations
[email protected] E. E. Wang
www.teraglobal.com [email protected]
(858) 404-5500 (310) 207-9300
