MONTREAL, Feb. 22, 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 provide a corporate update highlighting 2004 and looking ahead to 2005.
2004 -- Record Revenues and Strategic Growth
TelePlus, under the guidance of our experienced management staff, with over 60 years of experience in Management, Finance and Operations, underwent considerable growth in 2004.
TelePlus Retail added 16 branded stores in Canada, an increase of 72%. This was achieved by TelePlus opening stores in Vancouver and Toronto, the acquisition of Smart Cell in Western Canada and CELLZ in the Golden Horseshoe, which also includes Metropolitan Toronto. The Golden Horseshoe accounts for 22% of the total population of Canada. These acquisitions solidified TelePlus as a National Retail Chain.
TelePlus Wireless was introduced into the United States. The MVNO (Mobile Virtual Network) market originated in Europe where there are now over 20 MVNO's. Some industry watchers estimate that U.S. MVNO's could potentially command up to 5% of the wireless market share by 2008 and perhaps sooner. TelePlus has started to sign distributors across the United States including "Mr. PrePaid" nationally and StarTel in the Midwest United States. TelePlus wireless has access through these two distributors to over 800 points of distribution for its private label service.
TelePlus' third and newest subsidiary is TelePlus Connect. Through two strategic acquisitions, Freedom Phone Lines and Telizon Inc., TelePlus was able to add over 40 years of experience in reselling landline, long distance and internet access services. Once closed, these acquisitions will add over $14.5M USD in revenue and over $1.9M USD in earnings before interest depreciation and amortization (EBITDA).
TelePlus is pleased to announce that preliminary year end results show an increase in revenues of 62% to $12.4M as compared to $7.6M last year. TelePlus' loss as a percentage of sales continued to decrease in 2004 versus the same period a year ago. TelePlus' growth also allowed the company to strongly benefit from economies of scale. The company is currently in line to reach all objectives in its business plan.
2005 -- A Bright and Prosperous Future
-- Current revenue run rate is $16M.
-- Original expectations for 2005 were revenues of $18.5M and
earnings before interest, depreciation and amortization (EBITDA)
of $250K.
-- Upon completion of the Company's latest two acquisitions --
Freedom and Telizon -- the revenue run rate will increase to $30M
and EBITDA will be well in excess of $1M. The Freedom acquisition
is expected to close in early March. The Telizon acquisition is
expected to close within 150 days and is subject to TelePlus
obtaining financing.
-- Current expectation is to accelerate the Company's original
business plan by 18 months based on opportunities tabled.
-- TelePlus has enjoyed exceptional annual revenue growth, increasing
143% over the past three years. The Company anticipates continued
growth as it executes its business strategy.
-- The Company is evolving in the fastest growing consumer segment in
history -- the wireless industry -- with specific exposure in
retailing and network access.
The recent emergence of TelePlus as a potentially dominant player within the North American wireless communications sector is best characterized by a series of milestone initiatives over the past 12 months that have set the stage for accelerated North American expansion and record revenues through fiscal year 2004 and beyond.
This press release is available on the TelePlus' Investor Relation's site for investor questions, commentary and feedback. Investors are asked to visit http://www.agoracom.com and select the TelePlus Investor Relations HUB. Alternatively, investors can e-mail their questions or comments directly to TLPE@agoracom.com or asked to be placed on the TelePlus investor e-mail list to receive all future press releases 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.
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 changes, 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.