MONTREAL, June 3, 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 closed the acquisition of Avenue Reconnect, Inc. ("Avenue") announced in a release dated April 21st, 2005.
CUSTOMER BASE TO INCREASE BY 60%
As part of the transaction, Avenue will be rolled into TelePlus Connect Corp. ("TelePlus Connect") increasing that subsidiaries customer base by 2,000 bringing it to 5,300 users.
The closing of this latest acquisition is the third this year. Keda Consulting and Freedom Phone Lines were closed April 1st. The Company has also entered into definitive agreements for the acquisition of Canada Reconnect and Telizon earlier this year. These two remaining acquisitions are expected to be closed within 120 days subject to the company obtaining necessary financing and completing its due diligence.
SCHEDULED ACQUISITIONS TO INCREASE REVENUE RUN RATE TO $37M
The Company's recently announced acquisitions are part of a plan to leap frog its original revenue and earnings objectives by 18 months. Assuming closure of all acquisitions the Company's revenue run rate is expected to increase to $37M while earnings (before taxes) are expected to increase by $3.2M.
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 cash consideration valued at $560k to the shareholders of Avenue in exchange for 100% of Avenue's shares.
"We are delighted to have closed the acquisition of Avenue" stated TelePlus CEO Marius Silvasan. "The completion of this latest transaction is in line with our corporate objectives. Assuming closure of the two remaining acquisitions we anticipate our revenue run rate to increase to $37M and our earnings (before taxes) to increase by $3.2M 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 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.