MONTREAL, March 24, 2005 (PRIMEZONE) -- TelePlus Enterprises, Inc. (FRANKFURT:YT3) (OTCBB:TLPE) (http://www.teleplus.ca) is pleased to announce that it has signed a Definitive Agreement (SPA) for the acquisition of 100% of the shares of Keda Consulting Corp. ("Keda") and Freedom Phones Lines ("Freedom").
Immediately following the transaction, Keda will change its name to TelePlus Connect Corp. ("TelePlus Connect") and Keda's management will take over the operations of TelePlus' prepaid landline and long-distance telephone service division. The TelePlus Connect business plan calls for the company to reach yearly revenues of US$18M and EBITDA of US$5.6M within 48 months. The terms of the transaction call for TelePlus to pay the shareholders of Keda on an earn-out basis based on the achievement by TelePlus Connect of specific EBITDA benchmarks during the next 48 months.
Simultaneous to the acquisition of Keda, TelePlus has also signed a Definitive Agreement for the acquisition of 100% of the shares of Freedom. The Terms of the transaction call for TelePlus to pay a combination of cash and stock valued at US$1.3M to the shareholders of Freedom. The Cash compensation which represents 75% of the purchase price will be paid from cash on hand and will result in no dilution to current shareholders. Freedom shall be rolled in TelePlus Connect and its management will join TelePlus Connect following closing.
Freedom currently services 3,300 customers in Ontario, Canada with local and long-distance prepaid telephone services. Freedom currently generates yearly revenues of US$2.5M and EBITDA $300k. This transaction is set to close in the first week of April.
Investors are asked to e-mail all questions and correspondence to TLPE@agoracom.com where they can also request to be added to the TelePlus investor e-mail list to receive all future press releases and updates directly.
About TelePlus http://www.teleplus.ca
TelePlus Enterprises, Inc. ("TelePlus") through a subsidiary owns and operates 39 TelePlus branded stores in major shopping malls selling a variety of wireless and portable communication devices. The company's product lines include wireless handsets and services from major Canadian carriers, international phones, satellites, home phones and other mobile electronic devices including an exclusive line of international GSM world phones. TelePlus, through a US wholly owned subsidiary, TelePlus Wireless, Corp., operates a virtual wireless network selling its branded wireless products to distributors in select U.S. cities.
The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development and acquisition of new product lines and services, government approval processes, the impact of competitive products or pricing a technological changes, the effect of economic conditions and other uncertainties, and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. TelePlus Enterprises, Inc. takes no obligation to update or correct forward-looking statements.