Expanding into the U.S.Phonetime Purchases International Long Distance Carrier Combined
Phonetime Inc. (TSX VENTURE: PHD)(OTCBB: PHOEF), one of Canada's leading suppliers of long distance telecommunication services, announced today that it has agreed to purchase all of the outstanding shares of Symphony Telecom LLC, a private Virginia-based telecom service provider. Once completed, the acquisition will result in Phonetime having combined annualized revenue of nearly $150 million. The purchase price consideration includes cash, a convertible debenture and treasury shares of Phonetime. The transaction is scheduled to close in November 2007, subject to the execution of the definitive purchase documentation and regulatory approval. Wayne Silver, Phonetime's President and CEO, stated that, 'We believe that Symphony is an excellent fit for Phonetime; its business is synergistic and we expect it to immediately improve the profitability of our Company. We expect that Symphony's numerous worldwide routes will complement our existing customer base and will help us to continue our growth. Our plan in 2008 is to expand Symphony's direct routes with a goal of achieving $200 Million in sales.' Jason Mumper, Senior V.P. of Sales for Symphony commented, 'combining Symphony and Phonetime creates a dynamic International Carrier. Symphony specializes in direct telecom routes to some of the most challenging destinations worldwide, including many in Africa and South East Asia. We will benefit from Phonetime's expertise in managing a fast growing public telecom company with access to capital and government financing. Furthermore, Phonetime's Retail business will benefit organically from our International destinations. The owners and staff look forward to continuing operating and managing Symphony and working as part of a rapidly growing public company.' Rodney Franklin, Phonetime's Chairman and CFO, added, 'Symphony is a well regarded international long distance carrier that brings a tremendous network and new worldwide contacts to Phonetime. It has a very good reputation in the industry for providing high quality service with cost competitive direct routes.' About Symphony Symphony Telecom is a privately held Delaware Corporation with operations in Capetown, South Africa and an Administrative office in Virginia. Formed in 2002, Symphony has direct relationships with nearly 200 International Telecom Providers worldwide, with particularly strong routes to Countries in Africa and the South East Asia. About Phonetime Established in 1994, Phonetime is a leading Canadian supplier of International Long Distance telecommunication services for individual consumers and businesses as well as wholesale long distance call delivery to large and small domestic and international carriers. Phonetime Inc. is publically traded, listed on the Toronto Venture Exchange (TSX VENTURE: PHD). Licensed in Canada as a Class A International Carrier by the CRTC, Phonetime operates one of the largest and most advanced private telecommunications networks in Canada. In Canada, Phonetime has 40 Points-of-Presence covering most major metropolitan areas, effectively offering on-net service to approximately 85% of Canada's population. Phonetime also has connections in 140 countries around the world, with facilities in London, England and Frankfurt, Germany and administrative offices in Miami, Florida. Caution Regarding Forward Looking Information: This press release contains forward-looking statements within the meaning of securities laws, including the 'safe harbour' provisions of the Ontario Securities Act and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as 'anticipate', 'believe', 'expect', 'plan', 'intend', 'forecast', 'target', 'project', 'may', 'will', 'should', 'could', 'estimate', 'predict' or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to Phonetime concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: incorrect assessments of value when making acquisitions; increases in debt service charges; fluctuations in foreign currency and exchange rates; inadequate insurance coverage; changes in tax laws; and Phonetime's ability to access external sources of debt and equity capital. The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release, and Phonetime does not undertake any obligation to up-date publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The TSX Venture Exchange has neither approved nor disapproved the contents of the press release.