DESOTO, Texas, Sept. 7, 2005 (PRIMEZONE) -- eTelcharge.com, Inc., (the "Company") (Pink Sheets:ETLC) www.etelcharge.com, a financial diversified merchant services company, and The American Home Market Corporation (AHM), a privately held company that serves as a Certified Closing Agent for the United States Department of Housing and Urban Development today announced an outline of the merger expected to close in November, 2005 pending due diligence.
Both companies expect significant mutual benefits through customer optimizations. Upon successful completion of the merger and as the common ownership of the two companies is realized, eTelcharge.com will offer American Home's growing client base the ability to establish a viable online payment alternative system for the working class and those concerned with internet transaction fraud.
"The innovative and revolutionary qualities of the soon to be released 1.1 version of the phone billing option by eTelcharge, we contend, will readily demonstrate that it was worth the market's wait for its release," stated Ray Jackson, President and CEO of AHM Corporation. As previously announced, Mr. Jackson would become Chairman of the Board for the newly merged company.
The main elements of the Letter of Intent include:
-- The newly merged company would do business as eTelcharge.com, Inc.
-- eTelcharge.com, Inc. will continue operations as a publicly
traded corporation.
-- AHM shareholders would receive an issuance of up to 152 million
shares of restricted common stock and a minimum of $3,000,000.
With a two-year restriction on the stock, AHM intends to hold the
stock.
-- AHM would infuse $3 million in capital to assist in launching an
effective advertising and marketing campaign for eTelcharge.com's
new online currency
Other material terms of the LOI are as follows:
-- Former shareholders of AHM would have the right to appoint four
directors to the Board of the new eTelcharge.com, Inc.
-- Former board members of eTelcharge.com may continue to serve on
the new board representing three members.
"Over the next few weeks our companies will continue to move forward in the direction of completing this planned merger," stated Carl Sherman, President and CEO of eTelcharge.com, Inc. "This merger should provide eTelcharge with the financial strength and built-in customer base to capitalize on the market opportunities to be had for the company that brings a simple, yet viable solution to identity fraud -- the fastest growing crime of the 21st Century," expressed Mr. Sherman.
eTelcharge.com's 1.1 version of the phone billing option will focus on two-primary markets -- Baby boomers and the Hispanic market. "Both markets have been underserved on the Internet and I believe that the market will be attracted to the ease and secure benefits offered by this innovative, but conventional way to buy online," asserted Mr. Jackson.
About eTelcharge.com
eTelcharge.com (Pink Sheets:ETLC) offers the traditional credit card merchant services, checks and other existing financial infrastructure offered by banks, as well as the proprietary new online currency that provides online shoppers the exclusive choice to charge items to their telephone bill. Designed to reduce the risk of identity fraud and identity theft by providing an Internet credit option for online shoppers to charge a number of items sold over the Internet. This payment option is a perfect match for the 70 million Americans who do not own a credit card. eTelcharge.com started as the only company with the ability to charge a variety of products to the home phone bill. Clearly, past electronic commerce solutions have not employed effective security and privacy techniques that adequately address consumer concerns about privacy and security on the Internet today. The release of the latest version of the proprietary phone billing option is scheduled to be launched summer 2005. For more information, go to http://www.eTelcharge.com.
About The American Home Market Corporation
The American Home Market Corporation (AHM) and its subsidiaries are a Fee Office of Title Texas (Formerly Safeco Land Title of Dallas). We have assembled one of the most experienced commercial and residential closing teams in the State of Texas, if not the nation. The combined expertise of our escrow officers, in-house attorney closers, support legal staff and escrow support staff is unequaled in the business. A strong and widely diversified repeat customer base (individual, developer, lender, attorney) is a powerful testimony to our success. We are Certified Closing Agents for the United States Department of Housing and Urban Development (HUD) and as such we are the closing agents for any home sold by HUD in 42 counties throughout the State of Texas. With over $100 million dollars in yearly revenues, we are strongly committed to providing the finest products and services available.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements involve a number of known and unknown risks and uncertainties that may cause eTelcharge.com, Inc. and actual results or outcomes to be materially different from those anticipated and discussed herein. These include its historical lack of profitability, limited working capital, the need for additional capital, end-use customers' acceptance of new products and actual demand, the need for eTelcharge.com, Inc. to manage its growth, and other risks associated.