DALLAS, Jan. 8, 2007 (PRIME NEWSWIRE) -- IElement Corporation (OTCBB:IELM) (Frankfurt:SZQ1) (Frankfurt:IELM), a nationwide provider of advanced communication services and Voice over Internet Protocol (VoIP) solutions, announced today that it has entered into a non-binding Letter of Intent to merge with Dallas based Compeware Technology Associates, Inc., dba Comware.
Comware is an award winning industry leader in providing efficient network security solutions. Comware has been recognized by leading manufacturers throughout the United States with awards such as the Trend Micro Partner of the Year, McAfee's Top SMB Performer and as a Cisco Advanced Technology Growth Partner. Due to its expertise and proven track record, Comware holds high-level partnerships with the "best of breed" industry leaders in the network security and telephony markets. These partnerships allow Comware to provide customized network security solutions to its end users, and specifically to those in the SMB market space. The products and services that Comware offers are a great complement to IElement's personalized service with VoIP solutions, T1s, integrated T1s for voice and data, wireless Internet/data services, and Layer 2 Private Network (L2PN(tm)) solutions.
Charles Carlson, CEO of Comware, was appointed to IElement's board of Directors on December 7, 2006. Both companies are based in Dallas, TX and will continue to operate as they currently are.
Comware's revenue exceeded $10 million in 2004 and 2005, and 2006 numbers are expected to remain consistent with previous years. The combination of IElement and Comware will create a corporation with historical combined annual revenue of over $17 million while servicing over 10,000 businesses within the SMB space.
Terms of the merger have not yet been disclosed and are subject to further due diligence by both parties. A Definitive Agreement is expected to be reached within 30 days of this Non-Binding LOI. The transaction is expected to close on or before March 31, 2007.
IElement's CEO, Ivan Zweig, added, "The merger with Comware creates a captive audience of 11,000 installed and active business customers. This new customer base allows IElement to immediately enter the Professional / IT Service market, where Comware has enjoyed award winning success over the past 6 years. We expect to 'sell through' Comware's products and services to each and every one of IElement's customers. Conversely, we desire to sell Hosted Microsoft Exchange, traditional voice, VoIP as well as hosted VoIP applications to Comware's customers. We feel the combination of Comware and IElement provides both companies with an immediate opportunity to increase sales. We continue our commitment to creating shareholder value by leveraging our existing capabilities. Needless to say, we are very excited about the synergies created and the vast incremental 'sell through' opportunities presented by the addition of these customers."
About IElement Corporation
IElement is a facilities-based nationwide communications service provider that offers state-of-the-art telecommunications services to small and medium sized businesses ("SMBs"). IElement provides broadband data, voice and wireless services by offering integrated T-1 lines as well as a Layer 2 Private Network and VOIP solutions. These solutions provide SMBs with dedicated internet access, customizable business solutions for voice, data, wireless, internet, and secure communications channels between the SMB offices, partners, vendors, customers and employees without the use of a firewall or encryption device. IElement has a network presence in 18 major markets in the United States, including facilities in Los Angeles, Dallas and Chicago.
For more information on IElement, please visit http://www.ielement.com/
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About Comware
Comware is an industry-leading provider of network security solutions incorporating products, professional services, and implementation. Our elite team of experts understands complex security issues and works with a wide range of best-of-breed technologies to develop comprehensive, customized solutions that precisely and efficiently meet each client's specific needs. From intrusion detection and prevention to Internet filtering to the most current anti-virus remedies, Comware's sole mission is to protect its customers' business assets from any internal or external worldwide threat.
For more information on Comware, please visit http://www.comware.com/
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