LONDON, June 29, 2007 (PRIME NEWSWIRE) -- IT Group Holdings Inc. (OTCBB:ITGL) announced today that its UK subsidiary Internet Telecommunications Plc (IT) has recently signed up a large new contract with an active Reseller network in the UK for its non-geographic numbering services and telephone call minutes.
This major contract has been entered into with a large Reseller and utilizes their extensive reseller network to provide UK-wide coverage for IT's non-geographic numbering (NGN) services. Based on 10 years of doing business with other Telecom Carriers with annual revenues in excess of $20,000,000, IT believes that they will provide for IT the best partner to rapidly deploy our NGN services across the United Kingdom.
The services will be using IT's installed Nokia Switch in London and IT's new IVR (Interactive Voice Response) infrastructure. It is expected that IT's NGN services will become available to all of our Reseller customer base commencing in approximately a week's time, thanks to our automated provisioning system which is in place with British Telecommunications Plc (BT).
We expect that all new contracts which relate to NGN Resellers will bring a positive impact to IT's revenues and gross profits.
Charlie Yiasemis, the CEO of IT Group Holdings Inc., commented, "These Resellers are taking up our proposition at an increasing rate and we feel that the delivery of these NGN products will make a positive contribution to our gross profits with up to 20% margins in some cases." Charlie Yiasemis goes on to say, "Our fast delivery and excellent value-added services offering is now proving to be attractive to many Resellers. This is also helped by the investments we have made in new IVR equipment and our switched network operation. We estimate that these contracts would generate over $5,000,000 in revenues on an annualized basis and believe that besides the revenues agreed in this contract, we could become a valuable partner for this major Reseller and in future secure part of their existing business as well."
IT is now starting to see the benefits of its investment in its switched network infrastructure and will continue to make constant inroads into the UK Telecom Reseller market with its business propositions.
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 2006, IT achieved $22.7m in revenues (up 14.7% over 2005) and $1.35m in gross profits (up 18% over 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.