PERTH AMBOY, N.J., May 2, 2006 (PRIMEZONE) -- U.S. Starcom, Inc. (Pink Sheets:USTA) announced today that it has signed a definitive agreement for the purchase of Sky Distribution of East Meadow, New York. With $6 million in revenues in 2005, Sky Distribution also brings experience in selling prepaid phone cards and cellular phone products.
"This acquisition is a perfect fit for our distribution strategy," states John DiDomenico, President and CEO of U.S. Starcom. "Sky Communications will be the cornerstone for the prepaid distribution side of our business and this acquisition will greatly expand our revenue growth in the coming months. We plan on running Sky as an independent subsidiary, and incorporating their results in our first quarter. Our VP of sales, Vincent Annunziata, will be assisting Sky management in quickly ramping up sales, while adding thousands of additional retail outlets," said Mr. DiDomenico. "We will be consolidating most of our prepaid card business through Sky, so we would be very disappointed if Sky revenues were not at least $6-10 million in 2006."
About U.S. Starcom: A leader in providing value added prepaid services and solutions to enhance communications and entertainment. With a sales distribution network extending to thousands of urban locations, and with no long term debt, U.S. Starcom will continue its rapid expansion into the distribution of alternative communication products and services, including international long distance, prepaid phone cards, wireless dial around applications, stored value services and internet service enhancements. U.S. Starcom is committed to providing affordable access to the latest entertainment offerings from the recording industry through strategic alliances and joint distribution campaigns.
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