Telco Systems Acquired from World Access
BATM Advanced Communications Ld
10 April 2000
BATM ADVANCED COMMUNICATIONS
COMPLETES PURCHASE OF TELCO SYSTEMS FROM WORLD ACCESS
BATM Advanced Communications Acquires Telco Systems in a Deal
Valued at $330 Million
ATLANTA, GEORGIA - April 7, 2000 - World Access, Inc. (Nasdaq:
WAXS) announced today that it has completed the sale of Telco
Systems, Inc. to BATM Advanced Communications Limited (London
Stock Exchange: BVC) for $260.8 million in cash and 960,000
shares of BATM stock. Telco Systems, based in Norwood,
Massachusetts, manufactures network transport and access
solutions for leading telecommunications service providers.
BATM, based in Rosh Ha'ayn, Israel, is a fast-growing data
communications technology company that is quickly establishing a
global leadership position in next generation data communications
equipment, including edge access devices, multi-protocol
switches, fiber-based networking equipment and IP mux switching
solutions.
John D. Phillips, Chairman and Chief Executive Officer of World
Access, said, 'The sale of Telco Systems represents a major step
in our plan to add approximately $450 million in net cash to our
balance sheet through the divestiture of our Equipment Group.
This financial strength should allow us to aggressively pursue our
strategy to establish a leadership position in the rapidly growing
European telecommunications market. With our recent acquisitions
of FaciliCom International and NETnet International, and our
pending mergers with Star Telecommunications and WorldxChange
Communications, World Access will likely have an annual service
revenue run rate in excess of $2.5 billion. We expect the Star
and WorldxChange mergers to close early in the third quarter of
this year.'
'BATM designs and manufactures high performance data
communications systems that have been consistently praised for
their innovative technology and high quality. We've been
extremely impressed with BATM's financial performance over the
past year and believe that Dr. Marom and his team will continue
to develop revolutionary new switching and integrated access
solutions that will quickly establish them as a major player in
the worldwide data and telecommunications markets.'
Dr. Zvi Marom, Chief Executive Officer of BATM, said,
'BATM's acquisition of Telco Systems is consistent with our
stated strategy of establishing a stronger presence in the U.S.
telecommunications equipment markets. Telco System's innovative
EdgeLink products naturally complement BATM's switching and
access solutions that cater to the network edge. On a combined
basis, we anticipate that our bundled service offerings will
become a compelling proposition to all telecoms companies
involved in developing the next generation of high speed telecoms
services. Furthermore, Telco System's direct sales force and
well-developed direct and indirect sales channels establish a
broad sales and marketing presence for BATM, especially in the
United States telecommunications equipment markets. We intend to
utilize Telco System's customer development and retention
programs as a basis for further retail account growth.'
In December 1999, World Access announced that it was
pursuing strategic alternatives for its Equipment Group as part of
a strategy to concentrate on the international telecommunications
services market. In December, the Galaxy Engineering Services
Division was sold to a private investment group. Earlier this
week, the Wireless Local Loop Division was sold to Nera ASA, a
Norwegian equipment manufacturer. The Company continues to
evaluate offers for its NACT Switching Division.
About BATM
BATM Advanced Communications designs and manufactures data
communications equipment primarily for use in local and wide area
networks. Building on the success of its Titan T4, a LAN switch
which supports the new small form factor optical fiber
connections to the desktop, BATM has recently launched Titan T5,
capable of twice the switching capacity of the Titan T4. These
products combine fast switching with high levels of flexibility
of network connectivity across both copper and fiber optic
networks, including recent vDSL modules. Additionally, BATM has
been developing a non-blocking Titan T6 switch, a prototype of
which was recently profiled at the Geneva Telecom Show in October
1999. This generic switch demonstrated non-blocking switching
capacity of 256 gigabit. As a next generation product, BATM is
working on the development of a photonic switch, the Titan T8,
capable of switching optical signals without conversion to
electronic form. For additional information regarding BATM,
please refer to the company's website at www.batm.com.
About World Access
World Access is focused on being a leading provider of bundled
voice, data and Internet services to key regions of the world.
The company competitively provides end-to-end communications
services through its redundant digital network which is capable
of supporting voice and data services, including frame relay,
Internet Protocol (IP), asynchronous transfer mode (ATM) and
multimedia applications. Located strategically throughout the
U.S. and 13 European countries, World Access' network backbone
consists of gateway and tandem switches, linked by an extensive
fiber network encompassing tens of millions of circuit miles.
For additional information regarding World Access, please refer
to the Company's website at www.waxs.com.
This press release may contain financial projections or other
forward-looking statements made pursuant to the safe harbor
provisions of the Securities Reform Act of 1995. Such statements
involve risks and uncertainties which may cause actual results to
differ materially. These risks include: potential inability to
identify, complete and integrate acquisitions; difficulties in
expanding into new business activities; delays in new service
offerings; the potential termination of certain service
agreements or the inability to enter into additional service
agreements; and other risks described in the Company's SEC
filings, including the Company's Annual Report on Form 10-K for
the year ended December 31, 1999 and the Company's Registration
Statement on Form S-3 (No. 333-43497), both of which are
incorporated by reference into this press release.
For further information please contact:
BATM Advanced Communications
Dr Zvi Marom, Chief Executive Tel 972 393 86 888
Ofer Bar-Ner, Chief Financial Officer
World Access http://www.waxs.com
Michael F. Mies, Senior Vice President - Tel +1 404-231-2025
Finance & Treasurer
Ludgate Communications
Edward Macquisten Tel: 0207 253 2252