Exhibit 99.1 Press Release
FOR IMMEDIATE RELEASE
CONTACT:
Bob Bannon Jennifer Haas
Director, Investor Relations Communications Coordinator
Net2000 Communications, Inc. Net2000 Communications, Inc.
703-654-2000 703-654-2000
[email protected] [email protected]
Net2000 to Acquire Interactive Video Service Provider
FreBon International Corporation
High-End Video Applications Added to Net2000 Bundle of Services
Herndon, VA (June 28, 2000) -- Net2000 Communications, Inc. (Nasdaq: NTKK), an
innovative provider of integrated broadband telecommunications services to
medium and large businesses, today announced it has signed a definitive
agreement to acquire FreBon International Corporation (FreBon), a privately-held
provider of interactive video services headquartered in McLean, Virginia.
Founded in 1991, FreBon is a leader in the transport of video, data and
Internet-based technologies that support face-to-face communications over
interactive networks. FreBon currently provides services to a wide variety of
domestic and international users, including federal and state government
agencies, telemedicine providers, healthcare organizations, universities,
businesses and associations.
FreBon's expertise in the design, hosting and delivery of Visual Dialtone(TM)
interactive video provides the interactive, digital transmission of integrated
voice, video, and data, (including Internet) between two or more remote
locations. Through Visual Dialtone(TM), the use of different transport methods
and communications standards are transparent to the end-user(s), thereby
facilitating communications between users deploying different systems.
"We firmly believe that streaming video and desktop video conferencing will
quickly become a ubiquitous part of our daily lives," stated Charlie Thomas,
Net2000 CEO. "FreBon is a leader in the broadband video services and distance
learning markets and was among the first to implement an IP-based video
solution."
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"This acquisition vastly strengthens our integrated bundle of service offerings,
and now provides a high-end `sticky' application that will further fuel demand
for our broadband network services to our base of larger customers. In addition,
FreBon's strong customer base in the state and federal government markets
ideally complements our commercial base."
"Our broadband portfolio of services including local, high-speed data, Internet,
hosting and collocation, long distance, and now video - all delivered via a
single broadband connection, and on a single invoice is unparalleled in the
industry, and truly positions Net2000 to further our success in winning business
customers", continued Thomas.
Under the terms of the agreement, Net2000 will purchase all of the outstanding
shares of FreBon in a cash and stock transaction valued at up to $33 million,
including an earnout of up to $15 million upon attainment of certain financial
milestones. The transaction is expected to close within thirty days.
"We are very excited to join the excellent management team at Net2000, and feel
that this combination creates a formidable array of services for business and
government customers," said Fred Mueller, FreBon founder and CEO.
About Net2000 Communications, Inc.:
Net2000 is an innovative provider of broadband data and voice telecommunications
services to businesses across the United States. Net2000 provides premium
quality local, long distance, data, voice and Internet access services delivered
over a single broadband connection and billed on a single invoice. Net2000
currently operates sales offices in Boston, Providence, New York City, Long
Island, Northern New Jersey, Baltimore, Washington, DC, Richmond and Virginia
Beach.
For more information about Net2000 Communications, Inc., please visit
www.net2000.com or call 800-825-2000. For Investor Relations, contact Bob Bannon
at 703-654-2222 or [email protected].
About FreBon International Corporation:
FreBon is an Inc. 500 corporation and a preeminent leader in the network
integration of voice, video, data and Internet-based technologies for
commercial, healthcare, legal, educational and insurance markets both
domestically and internationally. FreBon holds seven state Visual Dialtone(TM)
contracts, including Massachusetts, New York, Georgia, Florida, Missouri,
Pennsylvania, and Delaware and currently provides interactive video services to
over 650 college, universities and other distance learning classrooms. For more
information on FreBon's services and capabilities, visit its web site at
www.frebon.com.
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FreBon International Corporation Fact Sheet
Financial Metrics:
Fiscal year ended January 2000 Revenues: $10.5 million
Number of customer sites: over 1,000
Number of employees: 55
Number of sales employees: 10
Acquisition Agreement Details:
Purchase price consists of:
o $9 million cash
o 400,000 shares of Net2000 common stock
o Assumption of $2.8 million of FreBon International debt
o $15 million earnout if certain financial milestones are met during the
calendar year following the acquisition
Under the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995, Net2000 cautions investors that any forward-looking statements or
projections made by the company, including those that may be made in this press
release, are based on management's expectations at the time they are made, but
they are subject to risks and uncertainties that may cause actual results to
differ materially from those projected. Net2000's future results may be impacted
by factors such as technological changes, market acceptance of the company's
existing and new services, Net2000's ability to continue to expand and fund its
network, Net2000's ability to successfully integrate its acquisition of FreBon
International Corporation, general economic conditions, regulatory and
legislative developments, and competitive market pressures. Net2000's future
results also may be impacted by other risk factors listed in its registration
statement dated March 6, 2000 and periodic reports filed with the Securities and
Exchange Commission. By making these forward-looking statements, Net2000
undertakes no obligation or intention to update these statements after the date
of this release.
