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EXHIBIT 99.1
CONTACTS:
Sonera Corporation Metro One Telecommunications, Inc.
Heikki Jamsanen, Senior Vice President Timothy A. Timmins
tel. +358 400 405 099 President and CEO
e-mail: [email protected] (503) 643-9500
Mikko Raunio, Vice President Duane Fromhart
tel. +358 400 500 113 Vice President, Finance
e-mail: [email protected] (503) 524-1266
Morgen-Walke Associates, Inc.
Jim Byers, Danielle Scheg
(415) 296-7383
Eric Gonzales
(212) 850-5600
Media Inquiries: Peter DeLauzon
(415) 296-7383
SONERA INVESTS $68 MILLION FOR 25.5% EQUITY INTEREST
IN METRO ONE TELECOMMUNICATIONS
COMPANIES TO COOPERATE IN DEVELOPING AND DELIVERING ENHANCED SERVICES WORLDWIDE
Portland, Oregon/Helsinki, Finland - November 9, 2000 - Metro One
Telecommunications, Inc. (Nasdaq: MTON), a leading United States provider of
enhanced telecom services including its Enhanced Directory Assistance(R) (EDA)
and Sonera Corporation (Nasdaq: SNRA and HEX: SRA), one of the world's leading
developers and providers of mobile value-added services, announced today that
they have entered into a definitive agreement, whereby Sonera will purchase four
million newly-issued shares of Metro One common stock at a price of US $17.00
per share, for an aggregate price of US $68 million and an approximately 25.5%
ownership position.
Under the terms of the agreement, Sonera will gain representation on
Metro One's Board of directors and can acquire up to an aggregate 33% ownership
position in Metro One, which may be achieved by open-market purchases or
otherwise. The two companies have also agreed to start a business co-operation,
to be documented by a future agreement, aiming to further develop enhanced
directory and other information services.
In addition to the benefits generated by the strategic relationship,
the transaction will provide Metro One with substantial capital to both fund
future growth and to pay down approximately US $35 million in debt, adding
nearly US $4 million to its future annual pretax income in the form of interest
savings. After the transaction, Metro One will have US $100 million in potential
borrowing capacity and more than US $100 million in shareholders' equity. It
will also retain approximately US $30 million in cash from the investment after
repayment of debt.
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Directory and related information services are among the most popular
value-added services offered through mobile phones and the Internet. By
combining expertise and service provision in mobile and network communications,
Sonera offers directory services by acquiring, processing and distributing
content through various channels. In addition to short message services (SMS),
wireless application protocol (WAP) and Internet services, the services include
human-assisted voice and automated voice services, and printed telephone
directories. By contrast, to date, Metro One's principal strength and focus has
been operator-assisted voice services provided through a network of
strategically located call centers.
"On behalf of our shareholders, we are pleased to enter into a
financially attractive transaction with such a well-positioned,
`credentializing' investor," said Timothy Timmins, president and chief executive
officer of Metro One Telecommunications. "Additionally, our partnership with
Sonera should allow us to leapfrog our own past efforts on the electronic side
of the telephony business, particularly in the areas of wireless application
protocol (WAP), wireless web, enhanced messaging and e-business."
"The demand for enhanced directory services is expected to grow rapidly
hand-in-hand with the mobile phone penetration," said Heikki Jamsanen, senior
vice president of Sonera. "The United States has great market potential and
demanding customers; we have actively looked at opportunities for expanding our
presence there. We were attracted to Metro One because of its strong management,
its superior market position and its track record of delivering innovative
features for its customers. The combination of Sonera's and Metro One's
expertise in directory and information services businesses ensures the
development of additional, ground-breaking enhanced services for mobile
customers."
The two companies see the transaction as a possible step toward the
development of a global network of enhanced services providers that could allow
carriers a deeper portfolio of services over a far greater geographic scope than
is available today.
The transaction is expected to close by the end of the year. The
transaction is subject to regulatory filings and possibly other approvals. Metro
One was advised in the transaction by Credit Suisse First Boston and further
assisted by D.A. Davidson & Co. and Needham & Company, Inc.
Metro One will host a conference call and webcast on Thursday, November
9, at 4:30 p.m. Eastern Time to discuss this announcement. The dial-in number to
access the call is (800) 633-8581. A taped replay of the call will also be
available beginning approximately one hour after the calls' conclusion and
remaining in effect until 6:30 p.m. ET on Saturday, November 11, and can be
accessed by dialing (800) 633-8284 with access passcode 1691-5166. The replay
may be accessed from international locations by dialing (858) 812-6440 and using
the same passcode. To access the live webcast, got to Metro One's website at
WWW.METRO1.COM. A webcast replay of the call will also be available at Metro
One's website.
ABOUT SONERA CORPORATION
Sonera Corporation, an international forerunner in mobile communications and
mobile-based services and applications, is one of the world's leading providers
and developers of mobile value-added services. By combining its expertise in
mobile communications, the Internet and
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service provision, Sonera aims to develop into a global communications operator
and provider of transaction and content services. Sonera has also been a leader
in advanced two-way messaging, a service popular in the highly
wireless-penetrated areas of Europe. One of Sonera's goals is to become the
foremost provider of enhanced directory services globally. Sonera has several
directory service investments and joint ventures: Conduit Plc in Ireland, 118
Ltd in the UK, Intra Call Center SA in France and Gilla Spa in Italy. Sonera
will incorporate its directory service business on December 1, 2000. The name of
the company will be Sonera Info Communications Ltd. In 1999, Sonera's revenues
amounted to EUR 1.85 billion and profit before extraordinary items and taxes was
EUR 0.5 billion. For more information, visit Sonera Corporation's web site at
http://www.sonera.com.
ABOUT METRO ONE
Metro One Telecommunications, Inc. is a leading developer and provider of
enhanced telecom services and Enhanced Directory Assistance services for the
telecommunications industry. The company operates a network of strategically
located call centers throughout the U.S. The company handled approximately 142
million requests for directory assistance and information services on behalf of
its carrier customers in 1999 and approximately 210 million requests in the
first nine months of 2000. Metro One has recently been included in Fortune's
comprehensive annual list of America's 100 Fastest-Growing Companies and Forbes
annual list of the 200 Best Small Companies in America. For more information,
visit the Metro One Telecommunications web site at http://www.metro1.com.
This press release contains forward-looking statements that are made pursuant to
the safe harbor provisions of The Private Securities Litigation Reform Act of
1995. The forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking statements,
including, but not limited to, factors detailed in the Company's Securities and
Exchange Commission filings. The forward-looking statements should be considered
in light of these risks and uncertainties.
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