EXHIBIT 99.1
Rapid Link Completes Acquisition of Telenational
Communications
LOS ANGELES, CA - May 8, 2006 - Rapid Link, Inc. (OTCBB: RPID.OB), one of
the leading providers of Internet Phone services to niche markets like the
military, today announced that it has closed the previously announced
acquisition of Telenational Communications, Inc.
Rapid Link has financed this acquisition through the issuance of a
Promissory Note in the aggregate principal amount of $1,000,000 paid to Apex
Acquisitions, Inc., in its capacity as the sole stockholder of Telenational
Communications, Inc. The Company notes that the use of the Promissory Note
to provide near-term financing of the acquisition will expedite the closing
and therefore the integration of the two companies. This allows Rapid Link
to begin executing on its growth strategy for the remainder of 2006. Under
the terms of the Promissory Note, the Note shall be due the earlier of 18
months or upon Rapid Link's closing of an equity or debt financing with
gross proceeds equal to or greater than $2 million. The Note accrues
interest at an agreed upon rate of 8% and is collateralized by the stock
of Telenational.
Rapid Link's strategy will be achieved through both organic growth and
by extending and complementing the Company's niche market target through
selective acquisitions. As previously announced, Rapid Link has identified
Telenational as a highly successful and an ideal partner with a highly
complementary business.
The potential synergies that may contribute to Rapid Link's growth efforts
moving forward include the following:
* Immediately accretive to Rapid Link's earnings
* Acquisition should more than double Rapid Link's
current revenue run rate
* Complementary technologies in synergistic niche
retail focus and brand
* Operating and cost efficiencies deriving from the
consolidation of back office foundations
* Highly complementary and experienced management team
"We are very pleased to complete the acquisition of Telenational using
a flexible financing strategy that allows us time to achieve the optimal
financing package in the marketplace which best serves the interest's of our
share holders," said John Jenkins, CEO of Rapid Link. "Both Rapid Link and
Telenational have a long tradition of focusing very carefully on user needs.
We share a similar customer base and a strong commitment toward standards.
With this new relationship, the Company is at a point where the business
vision can best be realized and customer needs met most effectively by
merging. Going forward, this will improve our bottom line and create the
critical mass necessary to take Rapid Link to the next stage in its growth
strategy."
About Telenational Communications, Inc.
Founded in 1988 as Telenational Communications LP, the Company specialized
as a long distance carrier with operations in the North America and Europe.
Incorporated in 1997 as Telenational Communications, Inc. ("TNC"), the
Company has continued to operate from its global headquarters in Omaha,
Nebraska.
About Rapid Link, Inc.
Founded in 1997 as Dial Thru International Corporation, Rapid Link provides
value-added Internet Phone (IP) communication services to customers, both
domestically and internationally. Rapid Link is a leading niche market
provider that has focused on the US military and other key niche markets
through its proven, high-quality Internet telephony products, services and
infrastructure for service providers, businesses and individuals worldwide.
The Company's IP service offerings include multiple service plans that
reside on Rapid Link's state-of-the-art IP network. The Company offers
PC-to-PC, PC-to-phone, phone-to-phone calling on their unique set of IAD's
-- Internet Access Device's -- that provide a new low cost phone service
that is delivered through a broadband connection. Rapid Link's back office
provides billing, operations management, marketing support, inventory
management, accounts payable, accounts receivable, sales force automation,
commission management, trouble ticket reporting. Customers can manage their
telecommunications services in a real-time environment through the Company's
tested back office support structure. Rapid Link's network spans more
than 15 countries on five continents. For more information, visit
www.rapidlink.com.
Forward Looking Statements:
This press release contains forward-looking statements, involving risks
and uncertainties. Such statements are based on management's current
expectations and are subject to certain factors, risks and uncertainties
that may cause actual results, events and performance to differ materially
from those referred to or implied by such statements. In addition, actual
future results may differ materially from those anticipated, depending on a
variety of factors which include, but are not limited to, Rapid Link's
ability to attract investors, Rapid Link's future operating results,
and general economic conditions affecting consumer spending, including
uncertainties relating to global political conditions. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date hereof. The Company does not intend to update any of the
forward-looking statements after the date of this release to conform these
statements to actual results or to changes in its expectations, except as
may be required by law.
Contacts:
David Hess
President and COO
Rapid Link, Inc.
Tel.: 310-566-1701
The Ruth Group
Investors:
John Quirk
Tel.: 646-536-7029
Media:
Susan Kim
Tel: 646-536-7032