MONTREAL, April 21, 2005 (PRIMEZONE) -- TelePlus Enterprises, Inc. (OTCBB:TLPE) (http://www.teleplus.ca), a vertically integrated provider of wireless and landline communications products and services across North America, is pleased to announce today that it has signed a Definitive Agreement (SPA) for the acquisition of 100% of the shares of Avenue Reconnect, Inc. ("Avenue"), a reseller of landline, long distance and Internet prepaid services.
Following the closing of the transaction, Avenue will be rolled into TelePlus Connect Corp. ("TelePlus Connect"), increasing that subsidiaries customer base to 11,500 users.
The acquisition of Avenue comes less than a week after the announcement of the acquisition of Canada Reconnect. The 4 acquisitions (Freedom, Telizon, Canada Reconnect and Avenue) announced by TelePlus since December 2004 will increase Teleplus' revenue run rate to $37M and contribute in excess of $3.2M to the company's earnings (before taxes).
The announced acquisitions are part of the company's plan to leap frog its original revenue and earnings objectives by 18 months. All acquisitions, except Freedom Phone Lines, which closed April 1st, 2005, are expected to close within 150 days subject to the company obtaining necessary financing.
Avenue currently provides local, long distance and Internet prepaid services to over 2,000 residential users primarily in Ontario, Canada. The transaction calls for TelePlus to pay a combination of cash and stock valued at $655k to the shareholders of Avenue in exchange for 100% of Avenue's shares.
"We are delighted to have concluded a transaction with Avenue," stated TelePlus CEO Marius Silvasan. "The acquisition of Avenue is the 4th acquisition we announced since December of last year. Assuming closure of all acquisitions, our revenue run rate would increase to $37M and would deliver in excess of $3.2M to earnings (before taxes) and this without any organic growth," added Silvasan.
"We are excited to have concluded the transaction with TelePlus," said Avenue's President, Damon Winney. "I believe our customers and our company will gain through this transaction," added Winney.
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This press release is available on the company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com and view the TelePlus Investor Relations Hub. Alternatively, investors are asked to e-mail all questions and correspondence to TLPE@agoracom.com where they can also request addition to the TelePlus investor e-mail list to receive all future press releases and updates directly.
About TelePlus http://www.teleplus.ca
TelePlus Enterprises, Inc. ("TelePlus") is a vertically integrated provider of wireless and landline products and services across North America. The Company's retail division -- TelePlus Retail Services, Inc. -- owns and operates a national chain of TelePlus branded stores in major shopping malls, selling a comprehensive line of wireless and portable communication devices. TelePlus Wireless, Corp. operates a virtual wireless network selling cellular network access to distributors in the United States. TelePlus Connect, Corp. is a reseller of landline and long distance services including Internet services.
About Avenue
Avenue Reconnect, Inc., headquartered in Windsor, Canada, is a reseller of landline, long distance and Internet prepaid services to over 2,000 residential users primarily in Ontario, Canada.
The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development and acquisition of new product lines and services, government approval processes, the impact of competitive products or pricing a technological change, the effect of economic conditions and other uncertainties, and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. TelePlus Enterprises, Inc. takes no obligation to update or correct forward-looking statements.