EXHIBIT 99.1
EGLOBE, INC. NEWS RELEASE
FOR IMMEDIATE RELEASE TRADING SYMBOL: EGLO
DATE: DECEMBER 1, 1999 STOCK EXCHANGE: NASDAQ
COMPANY CONTACT: AGENCY CONTACTS:
Allen Mandel John Heilshorn/Kris Otridge
Senior VP Corporate Affairs Lippert/Heilshorn & Associates
(800) 688-0092 (212) 838-3777/(415) 433-3777
john@lhai.com;kris@lhai-sf.com
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EGLOBE ACQUIRES CIT
- Adding Key Internet and eCommerce Technologies and
Strengthening Outsource Services -
WASHINGTON, D.C., December 1, 1999, eGlobe, Inc. (NASDAQ:EGLO) today announced
that it acquired Coast International Telecom, Inc. ("CIT"). CIT, a small,
privately held Kansas City firm, has developed innovative Internet products and
services which eGlobe management believes will strengthen the eGlobe offerings
in the telephone portal and unified messaging area, as well as adding to its
customer support capabilities in providing services on an outsource basis to
telephone companies and ISPs around the world, and providing eGlobe with its
first paying customers in eCommerce.
CIT, through its wholly owned subsidiary Interactive Media Works ("IMW"), has
just begun offering an interactive response system which interfaces seamlessly
with traditional voice telephone, with Voice over IP, and with data access from
the Internet and the World Wide Web - this kind of dual telephone and Internet
response platform is valuable in eCommerce and in a variety of services that
bridge the gap between the telephone and Internet. IMW initiated a hybrid
service using two platforms, one for voice and one for the Internet, a year ago,
and has had success in selling that service to firms in the advertising,
promotional and marketing industries in a few markets in the U.S. The new,
integrated platform will substantially enhance IMW's capabilities. eGlobe
management anticipates that it will be able to offer this service on a global
basis to and through its existing customer base and that it will be able to
greatly expand market coverage in the United States.
EGLOBE, INC.
PAGE 2
CIT has also begun providing Internet services through out the Midwest over the
last two years, both as an ISP to business customers and as a supplier of
technical support and help desk services to other ISPs.
CIT began as a resale provider of long distance services to business, primarily
in Kansas and Missouri, but almost 40% of its 1999 revenue will be derived from
its new IMW and Internet services. CIT anticipates 1999 revenues in excess of
$12 million with positive EBITDA - CIT has been profitable over the last several
years but the costs of acquiring and developing its new Internet and eCommerce
related businesses eroded bottom line profits over the last eighteen months. The
continued growth of the IMW and Internet businesses should result in strong
positive EBITDA for CIT in 2000.
The acquisition of CIT, accounted for as a purchase, is valued at approximately
$12.6 million, with the issuance of 882,856 shares of common stock and
convertible preferred stock which is convertible into a maximum of 3,220,000
shares of common stock at a conversion price of $5 per share.
"eGlobe welcomes CIT and its team to our growing company," commented Christopher
Vizas, Chairman and Chief Executive of eGlobe. "CIT provides another important
set of technologies and outsource services for our ISP and telephone company
customers. Equally important, its existing business customer base offers an
opportunity for the early launch of new enhanced services in a controlled
environment."
Bijan Moaveni, founder and CEO of CIT, will become Chief Operating Officer of
eGlobe. Details of that appointment are included in a separate announcement to
be released today.
ABOUT EGLOBE, INC.
eGlobe is a leading supplier of global telecommunications and information
services, including Voice over IP, Telephone Portal and Unified Messaging
Services, other international Internet and inter-networking services, and
calling card services, along with related validation, billing and payment
systems. eGlobe operates in partnership with telephone companies and ISPs around
the world. Through its World Direct network, eGlobe originates traffic in 90
territories and countries and terminates anywhere in the world. eGlobe provides
its services principally to large national telecommunications companies, to ISPs
and Portals, and to financial institutions.
Certain statements in this news release are "forward looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 and involve
known and unknown risks, uncertainties
EGLOBE, INC.
PAGE 3
and other factors that may cause the Company's actual results, performance or
achievements to be materially different from the results, performance or
achievements expressed or implied by the forward looking statement. Factors that
impact such forward looking statements include, among others, the ability of the
Company to attract additional business, the ability of the Company to
successfully integrate acquisitions and mergers, complete software development
and offer new products, changes in expectations regarding restructurings,
including tax liabilities and reductions in cost, possible changes in
collections of accounts receivable, risks of competition, price and margin
trends, changes in worldwide general economic conditions, changes in interest
rates, currency rates and worldwide competition.
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