ATLANTA, March 25, 2004 (PRIMEZONE) -- Sanswire Technologies, Inc. (Pink Sheets:SNWR) announced today that it has entered into a Binding Letter of Intent to sell substantially all its assets to GlobeTel Communications Corp. (OTCBB:GTEL). The acquisition is subject to various due diligence terms and the execution of a definitive Asset Purchase Agreement. It is anticipated that the transaction will be completed by the end of March, 2004.
Under terms of the proposed transaction, GlobeTel will issue shares of its common stock to Sanswire at closing. The Board of Directors of Sanswire Technologies will provide its shareholders with a dividend of one GTEL share for each SNWR share owned as of the close of business on the day the transaction is closed.
Sanswire shareholders may be entitled to additional equity in GTEL, should the Company's Stratellite project meet or exceed various benchmarks and milestones outlined in the Definitive Agreement.
A Stratellite is similar to a satellite, but is stationed in the stratosphere rather than in orbit. At an altitude of only 13 miles, each Stratellite will have clear line-of-site to an entire major metropolitan area. The Stratellite will allow subscribers to easily communicate in "both directions" using readily available wireless devices. In addition to the Company's National Wireless Broadband Network, proposed telecommunications uses include cellular, 3G/4G mobile, MMDS, paging, fixed wireless telephony, HDTV and others. To learn more about the Stratellites, visit the Company's website at www.sanswire.com.
Michael K. Molen, CEO of Sanswire Technologies stated, "In order for us to reach our objectives, it is necessary for us to align the Company with partners that understand our out-of-the-box vision. We are convinced that GlobeTel's management team is a perfect fit to help bring our National Wireless Broadband Network to fruition. The demand for this type of network has never been greater. When completed, the entire country will become a 'hot spot' and provide voice (telephone), video (television), and data (Internet) to our subscribers whenever and wherever they choose. GlobeTel also solves the telecom element of our bundled package and increases our access to the international marketplace."
Timothy Huff, CEO of GlobeTel stated, "We are looking forward to the beta test demonstration of the Stratellite in Atlanta and the completion of the research and development work that will be gathered from the test that will aid in the commercialization of the Stratellite. Then, we will be able to begin selling Stratellites and the various services they will provide to our customers. We expect this to open up new and exciting doors for us. This will allow us to deploy a complete IP network in a country virtually overnight. This will greatly speed up the deployment of our Super Hub technology by solving the last mile issue that most countries face. Uses like deploying Stratellites over the Atlantic corridor traveled by commercial airliners to provide uninterrupted phone and Internet service is one of many services that can be offered. This technology will change the face of telecommunications by making the need for expensive cabling and last mile solutions obsolete. The coupling of our bundled services and Sanswire's deployment capabilities makes this a very potent combination."
GlobeTel is an IP solutions/applications based company. Although international carrier termination business is the base and the beginning of the Company's services, GlobeTel's goal is to provide strategic advantages to commodity telecommunications based products. Taking such products as voice termination, prepaid calling cards, store valued debit cards and IP adapters and giving these products and services unique market advantages through the deployment of unique software and IP platforms. In each of these cases, GlobeTel has developed unique approaches that give the Company market advantages worldwide. For more information about GlobeTel, visit the Company's website at www.globetel.net
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about Sanswire's ability to complete the transaction with GlobeTel and is also based on, (i) GTEL's assumption that it will be satisfied with the results of its due diligence investigation of Sanswire, (i) the ability of Sanswire and other third parties to meet all of the required closing conditions set forth in the Binding Letter of Intent, (iii) the ability of GTEL and Sanswire to execute a definitive Asset Purchase Agreement on or before April 2004, (iv) the successful commercial development of the Stratellites, including but not limited to the ability of Sanswire to complete a beta test of the Stratellite. The statements contained in this press release are not guarantees that Sanswire will complete the transaction with GTEL and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors.