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EXHIBIT 99.1
[PENTASTAR LOGO]
PENTASTAR COMMUNICATIONS, INC. ANNOUNCES THE
ACQUISITION OF NETLINK INC.
Denver, Colorado (October 2, 2000) - PentaStar Communications, Inc. (NASDAQ:
PNTA), the nation's largest communications services agent, announced today that
it has completed the acquisition of NetLink inc. ("NetLink").
NetLink, located in St. Louis, Missouri, is one of the leading agents for
Southwestern Bell and primarily sells high-end data services. NetLink is also an
Ameritech distributor of voice and data services in Southern Illinois.
Southwestern Bell and Ameritech are subsidiaries of SBC Communications, Inc.
This acquisition complements PentaStar's earlier acquisition of the
communications services agency business of Telecomm Industries, Corp., by
expanding PentaStar's market coverage in the Midwest. Annualized run rate
revenue for NetLink is approximately $1.4 million.
Under the terms of the merger agreement, the consideration for the transaction
includes approximately $1.09 million in PentaStar common stock and cash plus the
assumption of approximately $350,000 in debt and certain operating liabilities.
In addition, there is a potential earnout payment to be made to the owners of
NetLink based upon NetLink's earnings before taxes and amortization during the
period from August 1, 2000 through July 31, 2001.
"We are very excited to welcome NetLink's Head of Operations, Chris Bigelow, and
the NetLink team to PentaStar. In addition to bolstering our presence in the
Midwest with Ameritech, NetLink establishes a solid base from which we can
enhance our market presence into Southwestern Bell's territory. NetLink's focus
on data oriented local and long distance services fits well into PentaStar's
strategy," said Bob Lazzeri, Chief Executive Officer of PentaStar.
PentaStar has strategic agency relationships with all regional bell operating
companies, and other telecommunications service providers including AT&T, Cable
& Wireless, Global Crossing, Intermedia Communications and MCI WorldCom.
ABOUT PENTASTAR COMMUNICATIONS, INC.
PentaStar designs, procures and facilitates the installation and use of
communications services solutions that best meet customers' specific
requirements and budgets. PentaStar was formed in March 1999 to become a
national communications services agent and specializes in being the single
source provider of total communication solutions for its business customers.
PentaStar's common stock is traded on the Nasdaq National Market under the
ticker symbol PNTA. For more complete information about PentaStar, contact
PentaStar Communications, Inc., 1660 Wynkoop St., Denver, Colorado 80202, (303)
825-4400, visit the company's website at www.pentastarcom.com or send an e-mail
to [email protected].
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This press release may contain forward-looking statements. Such
forward-looking statements are subject to certain risks and uncertainties
that could cause actual results or outcomes to differ materially from those
currently anticipated. The following important factors and uncertainties,
among others, could cause our actual results to differ materially from
those described in these forward-looking statements: our lack of combined
operating history and our untested business model; our success in carrying
out our acquisition strategy; our reliance on regional bell operating
companies and other service providers for communications services; our
ability to increase revenues from service providers other than local access
service providers. For a detailed discussion of these and other factors
that could affect actual results or outcomes please refer to PentaStar's
filings with the Securities and Exchange Commission, including PentaStar's
Form 10-KSB for the fiscal year 1999 and all other Securities and Exchange
Commission filings submitted as of this date.
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CONTACT INFORMATION:
Nancy Shipp
PentaStar Communications Inc.
E-mail: [email protected]
Phone: 303-825-4400
