LONDON, April 4, 2007 (PRIME NEWSWIRE) -- IT Group Holdings, Inc. (OTCBB:ITGL) announced today that its UK subsidiary Internet Telecommunications Plc (IT) has recently signed up six new contracts with active Resellers (Service Providers) in the UK for its wholesale line rental and airtime business.
These contracts represent a mixed base of revenues of approximately 60% from small and medium-sized enterprises (SMEs) and approximately 40% from residential consumers.
All the six new Resellers are now being fully integrated onto IT's automated billing system and will start generating line rental and telephone call traffic once deployed over IT's switched network.
James Gillett, Director of Business Development with IT, commented, "This demonstrates that Resellers like our proposition and that IT is now delivering good value with its new switched network in operation. We estimate that these contracts, once deployed, could generate over $5,000,000 in revenues on an annualized basis at margins commensurate with IT's standard Reseller (Service Provider) rates for wholesale line rental and telephone call charges. IT is now starting to see the benefit of its investment in its switched network infrastructure and we are working hard to make significant inroads into the UK Reseller market in line with expectations."
The two largest of these Resellers are also taking on extra VoIP and SIPP-based products from IT's portfolio to specifically target corporate businesses including blue chips which they were previously not in a position to service, and at the same time reselling these additional products back into their own extensive customer base.
IT is now positioned as one of the most recognized brand names for Wholesale Line Rental in the UK aside British Telecom, and according to our existing Resellers (Service Providers), offers them a more competitive and profitable business solution due mainly to IT's low cost wholesale line rental and telephone call product offerings.
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About IT Group Holdings Inc.
IT Group Holdings, Inc. (formerly Green Mountain Capital, Inc.) trades through its wholly owned UK subsidiary Internet Telecommunications Plc (IT). IT is fast becoming a leading global provider of telecommunications services. In its first full year of business, IT achieved $19.8m in revenues and $0.5m EBITDA in 2005 through its successful and seasoned management team. IT Group Holdings is now established as a fast expanding wholesale carrier-operator supplying service providers and businesses with low-cost telecommunications lines as well as competitive and high-quality telephone call services including voice, data, value-added services such as SMS, and carrier services such as Voice-over-Internet Protocol (VoIP).
Forward-Looking Statements
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.