PORTLAND, Oregon, Dec. 09, 2003 (PRIMEZONE) -- Nettel Holdings Inc. (OTCBB:NTTL) is pleased to announce a six month status update on the Company's progress and various lines of business.
Since its inception over two years ago as a provider of residential and commercial long distance using VoIP, Nettel has diversified and expanded its operations substantially. Today Nettel, through subsidiaries and offices in the U.S, Russia, India, and Vietnam, provides a full range of services in telecommunications, software development, digital animation, and import-export of computers electronics, metals, commodities, and foods.
Over the past six months the Company has developed a strategy to reshape itself, taking stock of the dramatic changes occurring in the hi-tech industry. This strategy should enable us to grow and prosper in this environment.
The reshaping of Nettel Holdings involves six core businesses, these are:
Nettel Global Communication -- Nettel Global Communication is a high growth, cutting edge telephony company in the exploding VoIP industry. Current products and services include residential and commercial long distance, prepaid calling card, PC to phone, unified messaging, and teleconferencing.
For more information on Nettel Global Communication, please visit the website at http://www.nettelcommunication.com
VoipXchange.net -- With additional customer service and technical support offices recently added in Vietnam to handle the demand, VoipXchange.net has partnered with over 1,600 major VoIP network termination partners worldwide to access their network infrastructure. This allows VoipXchange.net to provide high-quality, low-cost "any-distance" call termination to over 250 countries and territories. We operate our own, or in cooperation with other providers, a network of VoIP gateways throughout the world. These gateways are located mostly in difficult-to-reach countries or regions and provide local termination of international calls. VoipXchange.net offers this service to any international carrier, which is interested in reliable and inexpensive completion of its traffic to the VoipXchange.net's On-Net destinations.
For more detailed information on VoipXchange.net, please visit the website at http://www.voipxchange.net
Entec Software -- Based in Portland, Oregon, with programming offices in Vietnam, creates and develops software for small, medium, and large businesses. Entec has, or is currently, developing Accounting, Finance, Project Management, Inventory System, Database Management, Presentation Tools, E-mail, Voice Recognition, and Word Processing software.
For more information on Entec Software, please visit the website at http://www.entecsoftware.com
Talking Technologies -- Based in Beaverton, Oregon, with programming offices in Latvia, India, and Vietnam, is a next generation telecom application service provider. The Company provides our customers with ground-breaking, value-added voice services that are unique in their user utility, ease of application and use, presentation to users and cost advantage. Talking Technologies is making IVR technology more affordable and accessible to customers through standards-based technology. Talking Technologies next-generation IVR -- using VoiceXML enables companies to easily and quickly deploy automated phone services that can improve employee productivity, reduce costs, increase customer satisfaction, and create new revenue opportunities. This IVR allows companies to extend existing or new Web applications to be accessible by any phone at the lowest total cost of ownership
For more detailed information on Talking Technologies, please visit the website at http://www.talkingtechnologies.com
Tougi -- Based in Seattle, Washington, with programming teams based Europe and Asia. Tougi is a developer of interactive entertainment software and technology for a variety of consoles and computer platforms. Currently employing over 25 full-time programmers, artists, animators and game designers, Tougi is dedicated to the business of developing computer games. Current and future projects are being developed for the following platforms: PC Games, Nintendo GameCube, Game Boy, Game Boy Advance, Playstation, PS2, Dreamcast, and Xbox.
For more detailed information on Tougi, please visit the website at http://www.tougi.com
Nettel Trading -- Based out of Portland, Oregon, Nettel Trading's business scope covers import and export of computer electronics, machinery, equipment, instruments, light industry products, textiles and chemicals, seafood products and investment in different enterprises. Over the past year, Nettel Trading has established excellent connections and cooperative relations with over 1,000 companies in more than 40 countries and regions in the world. Through these important connections the Company has been able to branch into importing items necessary for advanced plant and production lines, key equipment and technologies, know-how in the fields of textiles, machinery, electronics, chemicals, light industry, building materials, transportation and agriculture.
For more detailed information on Nettel Trading, please visit the website at http://www.netteltrading.net
Performance in the last six months since the merger
Nettel Trading Corporation
-- 3rd quarter 2003, Nettel Trading exported over 45 forty foot
containers of computers and electronics overseas.
-- Received order for products and services worth $127 million.
The majority of these orders should be filled by third quarter
of 2004.
-- Profit generated from Nettel Trading operations has continued
to provide the needed funding to finance Nettel Global
Communication, Entec Software, Talking Technologies, Tougi,
and VoipXchange.net into 1st quarter of 2004.
Nettel Global Communication
-- Received purchase order for over $38 million worth of prepaid
calling cards from several nationwide distributors. The first
batch of prepaid calling cards will be delivered to distributors
by the middle of January 2004.
VoipXchange.net
-- Completed the relocation, installation and upgrading of bandwidth
capacity to a redundant OC-48 connection
-- Commissioning an additional three Cisco AS5800 models for
placement on the network.
-- Since June 2003, has received orders for over $164 million worth
of wholesale minutes from domestic and international carriers.
-- Over the past three months, VoipXchange.net learned that lack of
quality customer service and technical support has been a problem
in fulfilling many of these orders.
-- In response to increasing requests from clients concerned about
personal technical support and customer service, VoipXchange.net
has recently completed the hiring and training of 17 additional
customer service and technical support personnel.
-- Once the new customer service and technical support department is
in full operation, the Company will be able to start fulfilling
orders. To date the Company has successfully completed and
received payments on a few of these orders.
Outlook and Forecast
Looking ahead, we are on track for solid full-year performance. The long-term strategy is to remain focused on the core skills of providing telecommunication and software development services, and to seek opportunities for strategic partnerships in these areas.
Nettel Global Communication -- Based on current orders and market condition, estimates revenue generated from Nettel Global Communication could be over $40 million for the year 2004 with profit margins of 9-12%.
VoipXchange.net -- Based on current, pending orders, and market conditions estimates revenue could be well over $150 million with profit margins of 2-4% in 2004.
Entec Software -- A plan to spin off Entec Software into a publicly traded company by the second quarter of 2004 is being discussed with management. Based on current orders, industry averages, and current market conditions, estimated revenues for Entec Software could be over $7 million, with profit margins of 65 -- 85% for 2004.
Talking Technologies -- Based on current orders, industry averages, and current market conditions, estimated revenues for Talking Technologies in 2004 could be over $5 million with profit margins of 65 -- 85%.
Tougi -- Based on current orders, industry averages, and current market conditions, estimated revenues for Tougi could be well over $10 million with profit margins of 75 -- 90%.
Nettel Trading -- Nettel Trading revenues fall into two categories: Import and export of metals and commodities, we have booked over $127 million in revenue with profit margins of 2-4%. Revenues from exporting of computers and electronics, we expect to book well over $6.5 million in 2004 with profit margins of 59-68%.
The reshaping of Nettel Holdings, which has taken place over the last six months and continuing through the 4th quarter 2003, is essential to delivering future value to our shareholders. Although much has already been achieved, there are still many challenges ahead. We intend to pursue growth in each of our strategic core businesses both from within and where appropriate, through acquisitions. We have no shortage of opportunities and are actively pursuing the ones we feel will add value to the Company.
Safe Harbor
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the company's ability to attract qualified management, raise sufficient capital, and effectively compete against similar companies.