LOS ANGELES, June 8, 2004 (PRIMEZONE) -- FoneFriend, Inc. (OTCBB:FFRD) is pleased to announce that the Company has entered into an agreement with Infinicom Networks, Inc. to acquire 50,000 Voice over Internet Protocol (VoIP) customers.
The Agreement provides for the purchase of 50,000 customers, each paying $15 per month for VoIP telephony service. FoneFriend may also acquire additional subscribers at a later date. Infinicom will also provide FoneFriend with a complete network technology infrastructure and customer billing solution.
FoneFriend Chairman Gary Rasmussen stated, "This initial acquisition of InfiniCom's VoIP customers provides us with an immediate annual revenue base of $9,000,000. More importantly, the InfiniCom network infrastructure provides us with the ability to immediately penetrate overseas telephony markets in Western Europe and Eastern Asia, and to offer customers with high telephone bills vastly reduced long distance and international calling rates, making FoneFriend a global provider of VoIP services."
The purchase price of $7,500,000 requires a cash payment of $750,000 and the balance in shares of common stock. Boston-based Dutchess Private Equities Fund, LP has agreed to finance the cash portion of the purchase. The Company also has a $3 million equity credit line with Dutchess which it obtained several months ago. The final closing and transfer of the customer base is scheduled to occur on or about July 1, 2004.
About Infinicom Networks, Inc.
Infinicom is a leading provider of VoIP services with a subscriber base in excess of 2 million U.S. customers, supported with a complete back end infrastructure and a state of the art network that allows for efficient handling of customer calls as well as a customer management and billing solution.
About FoneFriend, Inc.
FoneFriend is an emerging business in the fast growing VoIP industry. FoneFriend provides its customers with access to extremely low cost, long-distance calling via the Internet (VoIP) using only a standard telephone handset.
About Equity Capital Market Information Systems, Inc. (EMIS)
FoneFriend has contracted with EMIS to organize and manage an investor awareness program. Their website can be viewed at http://www.traderpower.com.
Forward Looking Statements
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of wireless networks or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.