PERTH AMBOY, N.J., May 3, 2005 (PRIMEZONE) -- U.S. Starcom, Inc. (Pink Sheets:USTA) announced today it has signed a distribution agreement with Hispanic Communications of Los Angeles for the distribution of prepaid phone cards featuring soccer stars and entertainers at related events. The agreement is for 12 months with a renewal clause.
Joseph Macaluso, founder and COO of U.S. Starcom said, "This campaign has begun, featuring nine soccer stars on collector prepaid phone cards. Hispanic Communications will distribute these to thousands of fans. We expect the cards to both provide easy communication between Mexico and the U.S. and to remain a valuable collector's item."
"We anticipate the average monthly sales of $5 prepaid phone cards to grow to 90,000 cards per month," states John DiDomenico, President and CEO. "This announcement is the second of many that we expect to make for other markets nationwide within the next several weeks. These first two agreements should more than double our revenues from last year and because we have no debt, we anticipate strong earnings."
The agreement with Hispanic Communications will be managed by the Los Angeles office of U.S. Starcom and will provide for prepaid long distance phone cards for calls originating in either the U.S. or Mexico.
About Hispanic Communications: With headquarters in Los Angeles since 1997, Hispanic Communications has been providing prepaid calling cards to fans at concerts and soccer events and via Univision TV nationwide in both the U.S. and Mexico, primarily targeting the Latino communities. Univision is the largest Latin broadcasting network in the United States.
About U.S. Starcom: A leader in providing value added prepaid services and solutions to urban neighborhoods to enhance communications and entertainment. With a sales network extending to thousands of urban locations, more than 50 VoIP gateways and no long term debt, U.S. Starcom continues 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 Internet enhancements. U.S. Starcom's wider goal is to use its distribution network in urban neighborhoods to sell other services through strategic alliances and joint distribution campaigns; in effect becoming a massively specialized distribution enterprise. Regional offices are located in Reno, Los Angeles, Atlanta and Perth Amboy. The company is poised for significant growth.
Safe Harbor Statement
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Act of 1934. These statements include all that are not historical fact regarding the expectations of the Company among other things: trends affecting the financial condition or results of operations and growth strategy. Investors are cautioned that such statements are not guarantees of future performance and involve risks, many which are beyond the Company's control, and that results may differ materially from those projected.