TORONTO, Oct. 31, 2002 (PRIMEZONE) -- Telesis (TSX Venture Exchange:TNC) (OTCBB:TNCVF), a leading developer of data acceleration software, announced today that it has executed a letter of intent to acquire all of the issued and outstanding shares of Terra Telecommunications Corp.
With 2001 revenues of US $24.5 million, Terra is a profitable facilities-based telecommunications provider that offers services between the United States and Latin America. Terra, based in Florida, has been operating for 12 years and has developed an extensive network throughout the Americas.
Derek Woods, President and CEO of Telesis said: "The combination of Telesis and Terra will provide benefits to the shareholders of both companies. Telesis will focus on adding value to Terra's existing extensive relationships with carriers and Internet Service Providers in Latin America. Terra will also be introduced to business partners with whom Telesis has strong relationships in North America, Europe and Asia."
Joel Esquenazi, President and CEO of Terra, stated, "The solutions that Telesis offers will enhance our service offerings, differentiate our network from our competitors and diversify our revenue sources."
Consideration for the transaction will be common shares of Telesis. While the number of shares is still subject to adjustment, it will not exceed 25% of the currently issued and outstanding shares of Telesis.
The closing of the transaction is subject to final due diligence, completion of a definitive agreement and board approvals.
About Telesis
Founded in 1989, Telesis North Communications Inc. ("Telesis") (TSX Venture Exchange:TNC) (OTCBB:TNCVF) develops and markets data acceleration software for wireless and landline networks. The Company's core product, OVERDRIVE(tm), allows ISPs and wireless carriers to accelerate the effective performance of their networks by up to 10 times, resulting in cost savings and greater customer satisfaction. For accessing email, the Web, or any corporate application, Telesis "makes data move faster." Telesis is headquartered in Toronto, Canada with regional offices in the United States and the UK. The Telesis Web site can be found at www.telesis.ca.
About Terra Telecommunications Corp.
Terra Telecommunications Corp. is an international facilities-based communications and information services company serving residential and commercial customers in the U.S., Latin America and the Caribbean. Terra Telecommunications Corp. is poised to become a major player in the trillion dollar global communications market. Its vision is to become the preferred provider of local, long distance, and other telecommunications services to Hispanic communities in the U.S. and Latin America. Terra Telecommunications Corporation was founded in 1991 and is based in a major communications hub in Miami, Florida, the "Gateway to Latin America." Since its inception, Terra Telecommunications and its affiliates have developed as single source providers of leading edge integrated communications services with the objectives of providing their customers with a full array of voice, data and video transmission products and services, unparalleled management expertise, innovative design and engineering, and responsive customer service.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Such forward-looking statements, particularly as related to the business plans of the Company, expectations of strategic relationships, business opportunities, acquisitions of capital equipment, availability of investment capital and future financing, and the Company's ability to gain market share, are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the Company's expectations and estimates.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.