TOWSON, Md., April 23, 2004 (PRIMEZONE) -- AMITELO Communications Inc. (Pink Sheets) announced today it is preparing to establish a VoIP Direct Route Network to IRAQ with an initial Capacity of four (4) E1s, expandable to eight (8) E1s.
When accommodating wholesale VoIP traffic on the Iraq IP-Direct Route, the link will translate into a revenue of approx. $150,000 US per E1 per month, a total of approx. $600,000 US/ month with a Gross Margin of approx. 30%. The Gross Margin of the pre-paid retail traffic to be accommodated on the same link has an important Gross Margin of approx. 60%, whereas the traffic volume of the Pre-Paid Card Business will be substantially lower than the wholesale one.
"We can accommodate into such IP Routes a total of three (3) to four (4) million minutes on a monthly basis," stated Amitelo's CEO Khaled Akid. He added: "Some of the accommodated traffic will be wholesale IP-traffic collected from carriers operating in the U.S. and Europe and sent into Amitelo's Network to transport to Iraq and the remaining capacity will be filled by the outbound traffic to be generated in Iraq through pre-paid calling cards." He concluded: "We would like to position ourselves as the Carrier specialised in Hard-to-Reach destinations and the establishment of three (3) to four (4) similar IP Direct Routes until the end of this year will definitely lead to a significant wholesale traffic increase in Amitelo's Network and therefore major revenue enhancement."
About Amitelo Communications, Inc.
Amitelo Communications Inc. is an international telecommunications and internet service provider company. Amitelo`s core business is dealing with the delivery of high quality voice & Internet services. The companies' concentration is on providing both VoIP Voice over IP services and DSL / Broadband via Satellite in regions lacking connectivity. Several parts of southern Europe, many regions in Africa and the Middle East currently lack connectivity. The company is currently dealing with Internet & Voice traffic generated by its international subscribers and is in the process of expanding its services by establishing further POP Points of Presence throughout Africa and the Middle East. The company's Management brings over 70 years of combined experience in almost all aspects of Information Technology and Telecom. For more information about Amitelo Communications, Inc. visit, http://www.amitelo.com.
Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. In addition to the factors discussed in the filings with the Securities and Exchange Commission, among the other factors that could cause actual results to differ materially are the following: adverse changes in the business conditions and the general economy; competitive factors, such as rival companies' pricing and marketing efforts; availability of third-party material products at reasonable prices; the financial condition of the customer; risks of obsolescence due to shifts in market demand; and litigation involving product liabilities and consumer issues. Amitelo Communications, Inc. cautions readers not to place undue reliance upon any such forward looking statements, which speak only as of the date made. Amitelo Communications, Inc. expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the company's expectations or any change in events, conditions or circumstances on which any such statement is based.