PORTLAND, Ore., Nov. 16, 2004 (PRIMEZONE) -- Ontus Telecommunications Corp. (Pink Sheets:ONTC), an FCC licensed international, long distance communications carrier and business class VoIP wholesaler, today announced that further to the news release dated November 1, 2004 announcing that certain shareholders of the Company had exchanged 55,213,900 ONTC common shares for 5,000,000 Series A preferred shares of the Company, David Hoffman and Ken MacDonald have agreed to exchange an aggregate of 74,889,480 restricted and free trading ONTC common shares for an equitable combination of ONTC Series B and ONTC Series C preferred shares. The exchange has reduced the availability of ONTC free trading common stock by 81%.
With the exchange, the executives maintain all voting rights, and long term conversion provisions based on predetermined milestones.
About Ontus Telecommunications Corporation:
Ontus Telecommunications Corporation wholesales business class VoIP phone services domestically and internationally. The Company markets VoIP services through co-branded marketing programs and partnerships. Gross margins are expected to be above industry averages due to reduced communication expense from utilizing ONTC's international network.
For additional information, see www.ontus.com.
Forward Looking Statement
This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events and the future financial performance of Ontus Telecommunications Corporation ("Ontus") that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry and in various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market; the timing of orders and manufacturing lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; the ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; increased competition in the networking industry; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, intellectual property, antitrust, shareholder and other matters; the ability to recruit and retain key personnel; our ability to manage financial risk; currency fluctuations and other international factors; potential volatility in operating results and other factors listed in Ontus' most recent reports. Ontus' results of operations are not necessarily indicative of Ontus' operating results for any future periods. Any projections in this release are based on limited information currently available to Ontus, which is subject to change. Although any such projections and the factors influencing them will likely change, Ontus will not necessarily update the information, since Ontus will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.