RENO, Nev., Aug. 2, 2004 (PRIMEZONE) -- ICM Telecommunications, Inc. (Pink Sheets:ICMH), a rapidly growing provider of prepaid stored value credit cards activated at Point of Sale (POS) and ATM machines nationwide, reported today that its Chairman & CEO, Doug Hamby, has issued the company's latest operational report to shareholders. The full text of his message follows:
August 2, 2004
Dear Fellow Shareholders:
Since our last report to you, the company has made substantial progress in getting its prepaid stored value card program ready for full launch. The sheer logistics of getting this program up to operating speed has required us to recalibrate our revenue outlook. While we earlier had anticipated revenues in the current quarter, that anticipation has been tempered by the reality of many interlocking steps required to roll out a seamless suite of products with nationwide access.
However, the good news is that the necessary investments of time and money have been made, and we now anticipate that, starting in September, ICM will begin to record revenues with the first shipments of prepaid products already on order. Moreover, we have received the second phase of the $750,000 investment committed to the company by BullBear Capital Partners, LLC, which is providing this funding over a three-month period to accelerate the program's launch. We are very grateful to that firm's Managing Director, Brian Corday, for his unflagging support.
With our relocation to Nevada completed, economies of scale in terms of taxation will enable us to use those savings to our advantage in executing our business plan. Shareholders can now see on the company's new web site, www.icmtelecom.net, a more detailed explanation of our partnerships and our key product offerings, including prepaid debit cash cards, payroll cards and gift cards, accessible at ATM and POS terminals nationwide.
We are now the exclusive distributor of debit instruments for 1st Financial Solutions Inc., which is in partnership with Sutton Bank. That bank's status as a premier card issuing financial institution will permit our customers all the benefits of other ATM debit cards, and be accessible at all ATM and POS locations, and virtually all retail establishments. This level of convenience will give card users several hundred thousand places where their cards will be immediately acceptable and honored, especially since their funds are federally insured. We also expect in the near future to be able to finalize our international debit card program.
We believe that between the September launch through December, ICM will realize incremental and recurring revenues from its stored value credit cards of approximately $250,000, and be profitable by year's end. We also believe that in 2005 the company will realize revenues from its programs in excess of $10 million, with higher gross margins and increasing profitability, enroute to our long-held goal of becoming a fully listed security...It's all coming together.
Sincerely,
Doug Hamby, Chairman & CEO
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance, or expectations expressed or implied by such forward-looking statements.