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US Starcom Closes Merger With Bell Latino25 October 2006
US Starcom (Pink Sheets: USTA) is pleased to announce that it has consummated a merger agreement with Bell Latino Multiservices, LLC. of Long Branch, New Jersey. The company will function as an independent subsidiary of US Starcom. Michael Burns, the current General Manager of Bell Latino, will join US Starcom as division President of Bell Latino, while Joseph Betro, principal with Bell Latino with many years of telecom network experience, will join the company as VP of Telecom. "This merger marks a milestone in the growth of US Starcom," said John DiDomenico, President of US Starcom. "This division will become the foundation that bonds together our separate divisions and strengths. Not only will it add over $3 million to our 3rd quarter revenues, it should add significantly to 2007 revenues. We plan on tripling the number of locations over the next 12-18 months, funded by internal cash flow. We will be able to remit money for our Hispanic customers, handle their telecom and prepaid needs, while also taking care of their tax preparation needs." "We are very excited about the synergies between the 2 companies," said Michael Burns, President of Bell Latino. "Our goal is to double our net margins over the next 12 months by adding many of US Starcom's products to our locations. We feel this business has the potential to grow to over $100 million annually over the next several years." About U.S. Starcom: The company is a leader in providing value added prepaid services and solutions to enhance communications and entertainment. With a sales distribution network extending to thousands of urban locations, U.S. Starcom will continue its rapid expansion into the distribution of alternative communication products and services, including international long distance, prepaid phone cards, wireless dial around applications, stored value services and money debit cards, and internet service enhancements. U.S. Starcom is committed to providing affordable access to the latest entertainment offerings from the recording industry through strategic alliances and joint distribution campaigns. The company can provide product development, distribution, and system installation through its two independent subsidiaries, Sky Distribution and U.S. Starcom Technologies, formerly known as Infinite Technology, Inc. Safe Harbor Statement: This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," "promise," "seeking to," "negotiating to" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Contact: U.S. Starcom, Inc. Jack Lennon (508) 362-4420 http://www.usstarcom.com
Source: prnewswire
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