TORONTO, Dec. 17, 2001 (PRIMEZONE) -- Orbit E-Commerce, Inc. (the "Company") (OTCBB:OECI) today announced that as anticipated in a recent release, the Company is now delivering traffic for a major American wholesaler carrier in to Toronto, Montreal and Vancouver. In the coming weeks, the Company will be delivering calls for this carrier to all 12 Points of Presence (POP's) on its Canadian network, covering approximately 80% of the Canadian population.
In the same period, the Company will commence using these carrier for the delivery of calls originating on the Company's network into the United States and other destinations around the world. From a cash management perspective, this will result in a "minute trading" program that will ultimately reduce the Company's payments for call delivery while using only excess capacity on its own network. Over the coming year, the Company expects to generate revenue in excess of U.S. $2.5 million from its relationships with wholesale carriers around the world, while reducing costs and improving quality and service for its own clients.
While this relationship enables Orbit to produce immediate revenue from the utilization of surplus capacity at its Canadian Points of Presence, both parties recognize that Orbit's first priority is to its clients. This means that as consumer demand for the Company's services continues to increase, network capacity will be re-allocated to serve these retail clients. In effect, this is a win-win situation for Orbit in that the Company will be generating additional cash flow at virtually no incremental cost by utilizing existing network infrastructure.
About Orbit Canada Inc. / Orbit E-Commerce Inc.
Orbit Canada Inc. is a wholly owned subsidiary of Orbit E-Commerce Inc. (OTCBB:OECI). Its advanced IP network spans Canada and serves up to 85 percent of the nation's populace. Installation of gateways in the United States is underway. Orbit Canada's VoIP network allows subscribers to use their own telephone equipment to make Internet-routed long-distance calls rather than forcing consumers to connect through PC's or special Internet telephones. The development of this user-friendly VoIP format led Frost & Sullivan to award Orbit the research company's much-sought-after Product Innovation Award. In granting this award, Frost & Sullivan claimed that Orbit's network was a model for entrants into the telecommunications field who want to use the new VoIP technologies.
Forward Looking Statements
Forward Looking Statements contained in this press release that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the current views of management with respect to future events and are subject to certain risks, uncertainties and assumptions including potential issues relating to interoperability, inability to introduce new products, changes in market conditions, government regulations, technological changes and other factors. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.