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EXHIBIT 99.2
TELECOMM INDUSTRIES CORP. COMPLETES SALE OF NETWORK
SERVICE DIVISION TO PENTASTAR COMMUNICATIONS, INC.
NAPERVILLE, Ill.--(BUSINESS WIRE)--July 19, 2000--Telecomm Industries Corp.
(OTCBB:TCMM - NEWS) announced today that it has completed the sale of its
network services division to PentaStar Communications, Inc. (NASDAQ:PNTA -
NEWS), the largest communications services agent in the country.
Under the terms of the transaction, the initial consideration was
approximately $7.36 million in cash and PentaStar common stock, the
assumption of approximately $5.7 million in debt and the assumption of
certain operating liabilities. In addition, under an earn-out provision in
the agreement, Telecomm could potentially earn up to $8.9 million in
additional compensation based on financial results for the period of April 1,
2000 through March 31, 2001, bringing the total value of the deal to $22.5
million. The transaction was ratified at the Telecomm Industries Corp. annual
shareholder's meeting held on June 30, 2000.
Paul Satterthwaite, the President and CEO of Telecomm Industries commented,
"The sale of the network services division is a significant event for the
company. Not only does it provide cash consideration, but it also eliminates
the majority of our current and long-term debt. In addition, it provides an
opportunity to generate substantial value during the earn-out period, and
most importantly allows our shareholders to retain the ability to fully
capitalize on the public market valuation of the network agency business.
Telecomm will now be in a position to focus on the completion of the Internet
strategy commenced last year with the creation of its subsidiary
NetVision.Com. The telecommunications and data equipment installation and
service business of Telecomm provides the platform to launch Internet
infrastructure services to the customer base in our five state region and
beyond."
Telecomm Industries Corp. is a large regional telecommunications and data
equipment value added reseller and service company with offices in Illinois,
Indiana, Ohio, Wisconsin, and Kentucky. Telecomm combines its' technical
service capabilities with products from world-class manufacturers to provide
single source telecommunications and computing solutions to its business
customers. Telecomm owns approximately eighty-five percent of its subsidiary,
NetVision.Com, which operates as an Internet service provider and focuses on
web hosting, e-commerce and other business-to-business applications and
services. For more information please visit the company's website at
www.tcmm.com.
PentaStar designs, procures and facilitates the installation and
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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 SmallCap Market under the
ticker symbol PNTA. For more complete information about PentaStar, contact
PentaStar Communications, Inc., 1522 Blake Street, Denver, Colorado 80202,
(303) 825-4400, visit the company's website at www.pentastarcom.com or send
an e-mail to [email protected]
Certain statements contained in this report that are not historical facts are
forward-looking statements that are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
set forth in the forward-looking statements. Reference is made to the
Company's filings with the Securities and Exchange Commission, including the
Company's annual report for fiscal 1999 on Form 10-KSB, the quarterly report
on Form 10-QSB and the Company's annual Proxy report for fiscal 1999 on Form
14A. Investors should read this release in conjunction with these filings for
a description of these and other factors that could cause actual results to
differ materially from those in the forward-looking statements.
