MADRID, Spain, Jan. 20, 2004 (PRIMEZONE) -- ITS Networks, Inc. (OTCBB:ITST) announces that it has closed its financing round for 2.9 million euros with a Dutch Investor Group headed by Hendrik van Elst.
ITS Networks, Inc. President, Gustavo Gomez, states, "We are pleased to announce that we have successfully negotiated the entry of a new investor which will invest 2.9 million euros. Under the terms of the agreement the company will receive 2.9 million euros by the end of January 2004 in exchange for restricted common stock. This investor has committed to ensuring the viability of the new business plan and of the company for the following years. This year 2004 marks the start of a promising new era at ITS Networks with the incorporation of this new shareholder".
Herman de Haas, Vice President of ITS Networks and CEO of Teleconnect, continues, "As we anticipated, the arrival of these funds will enable the Company to affront our last existing financial obligations and will be used to create a healthy balance sheet, for working capital, to increase network capacity, as well as for marketing and to help to facilitate potential acquisitions. Teleconnect has recently been restructured in the prior year 2003 from an organizational, legal and financial point; the company on a go forward basis for the year 2004 will now be able to ascertain all of their goals. In addition the new funding will allow us to become one of the Top 3 prepaid telecom operators in Spain providing EBIT positive result in 2004."
About ITS Networks:
ITS Networks, Inc. through its wholly-owned subsidiary Teleconnect Comunicaciones S.A., a Spanish telecommunications company, is a major player in the prepaid telecoms industry in Spain. ITS Networks, Inc. is quoted on a U.S. stock exchange. ITS Networks provides commercial and residential users in Spain with a very competitive array of prepaid services. Visit our website, www.teleconnect.es
Forward-Looking Statements:
Except for the historical information contained herein, the statements in this press release are forward-looking statements that involve risks and uncertainties. Potential risks and uncertainties include, without limitation, continued competitive pressures in the marketplace; the effect competitive and economic factors and the Company's reaction to them may have on consumer and business buying decisions with respect to the Company's products; the ability of the Company to make timely delivery of new products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the SEC.