XFONE USA Completes Merger With I-55 Internet Services and I-55 Telecommunications, Inc.
03 April 2006 - 3:15PM
PR Newswire (US)
JACKSON, Miss. and HAMMOND, La., April 3 /PRNewswire-FirstCall/ --
XFONE, Inc. (AMEX:XFN), an international diversified communications
services company, today announced the completion of its mergers
with both I-55 Internet Services, Inc. and I-55 Telecommunications,
LLC. into its wholly-owned subsidiary XFONE USA, Inc. In exchange
for all of the capital stock of I-55 Internet, the Company issued a
total of 789,863 shares of common stock valued at $2,380,178. The
Company also issued 603,939 warrants with an exercise price of
$3.31 for a value of $1,284,722, based on a Black Scholes option
pricing model. In consideration of the merger with I-55
Telecommunications, LLC, XFONE issued 223,702 shares of common
stock with a value of $671,687, and also issued 79,029 warrants
with an exercise price of $3.38 for a value of $166,667, based on a
Black Scholes options pricing model. Additional details of the
mergers can be found in an associated 8K to be filed with the U.S.
Securities & Exchange Commission. "Although we have been
working side-by-side with I-55 since fall of last year pursuant to
our management agreements, we are pleased to formally welcome the
companies to the XFONE organization. Moreover, working with them to
overcome the devastation caused by Hurricane Katrina has led to a
deep and abiding respect for the entire I-55 team, which makes this
merger that much more significant to us. With I-55 aboard, XFONE
USA's growth potential is greatly enhanced and provides us with a
very formidable platform from which to aggressively cross-sell our
bundled services to our expanded customer base, while pursuing
increased share of the telecommunications market in the U.S. gulf
coast region," stated Wade Spooner, Chief Executive Officer of
XFONE USA, Inc. I-55 Internet, a corporation organized under the
laws of the State of Louisiana, is one of the largest privately
held Internet Service Providers (ISP) in the Southeast region of
the United States. Established in 1996 and headquartered in
Hammond, Louisiana, I-55 Internet serves both residential and
commercial customers in Louisiana, Mississippi and Alabama,
offering a full complement of Internet services, including digital
high speed access, dial-up access, email services, professional web
development, web hosting and co- location and networking services.
I-55 Telecommunications was built to provide businesses with all
the advantages of competition -- higher service quality,
competitive pricing and technological advancements. Operating as a
fully licensed, facility-based CLEC, I-55 Telecommunications
currently provides service to commercial clients in second and
third-tier markets in Louisiana and Mississippi where there are
fewer competitors than in larger metropolitan areas. The Company,
with a next generation class 5 switching solution, offers
state-of-the-art telecommunications products - voice, data and
Internet -- all from a single source, on one affordable bill. Its
infrastructure is based on the latest developments in network
operations, engineered to provide businesses with cutting edge
products and truly exceptional customer service. Guy Nissenson,
Chief Executive Officer of XFONE, Inc., added, "Execution of these
key acquisitions represent a notable step forward in XFONE's global
growth strategy and considerably strengthens our foothold in the
U.S. marketplace. Further enhanced by our recent asset purchases of
Canufly.net and EBI Comm, XFONE USA will represent a sizable
revenue contributor to our Company." About XFONE USA, Inc.
Headquartered in Jackson, Mississippi, XFONE USA is a fully
integrated communications company providing residential and
business customers with high quality local, long distance and
data/Internet solutions throughout the Southeastern United States.
Combined with telephony services, XFONE USA also provides CATV and
high speed Internet services to planned communities and
multi-dwelling apartment communities, utilizing integrated
multi-media offerings - combining digital voice, data and video
services over broadband technologies - all on one single itemized
bill. About XFONE, Inc. A U.S.-domiciled corporation, XFONE is an
international voice and data communications services provider with
operations in the United Kingdom, the United States and Israel, and
offers a wide range of services which include: international and
long distance telephone services, prepaid calling cards; cellular
services and reselling opportunities. The Company serves customers
in 75 countries across Europe, Australia, North America, South
America, Asia and Africa. This press release contains
forward-looking statements. The words or phrases "should," "would
be," "will allow," "intends to," "will likely result," "are
expected to," "will continue," "is anticipated," "estimate,"
"project," or similar expressions are intended to identify
"forward-looking statements." The Company's financial results
reflected above should not be construed by any means as
representative of the current or future value of its common stock.
All information set forth in this press release, except historical
and factual information, represents forward-looking statements.
This includes all statements about the company's plans, beliefs,
estimates and expectations. These statements are based on current
estimates and projections, which involve certain risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. These risks and
uncertainties include issues related to rapidly changing technology
and evolving standards in the industries in which the Company and
its subsidiaries operate; the ability to obtain sufficient funding
to continue operations, maintain adequate cash flow, profitably
exploit new business, and license and sign new agreements; the
unpredictable nature of consumer preferences; and other factors set
forth in the Company's most recently filed annual report and
registration statement. Readers are cautioned not to place undue
reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof. The Company
undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the
date hereof. Readers should carefully review the risks and
uncertainties described in other documents that the Company files
from time to time with the Securities and Exchange Commission. For
More Information, Please Contact: At XFONE, Inc. Alon Mualem, Chief
Financial Officer, 011-972-39254446 or via email at Or Elite
Financial Communications Group Dodi Handy, 407-585-1080 or via
email at At XFONE USA Ted Parsons, Executive Vice President/CMO
601-420-6461 or via email at DATASOURCE: XFONE, Inc. CONTACT: Alon
Mualem, Chief Financial Officer of XFONE, Inc., +011-972-39254446,
or ; or Dodi Handy of Elite Financial Communications Group,
+1-407-585-1080, or ; or Ted Parsons, Executive Vice President/CMO
of XFONE USA, +1-601-420-6461, or Web site: http://www.xfone.com/
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