U.S. Starcom, Inc. Signs Letter of Intent to Purchase Sky Communications


PERTH AMBOY, N.J., Feb. 14, 2006 (PRIMEZONE) -- U.S. Starcom, Inc. (Pink Sheets:USTA) announced today that it has signed a Letter of Intent for the purchase of Sky Distribution, Inc. of East Meadow, New York. With $6 million in revenues in 2005, Sky Distribution also brings experience in selling pre-paid phone cards and cellular phone products to complement U.S. Starcom's overall business.

"This acquisition is a perfect fit for our distribution strategy," states John DiDomenico, President and CEO of U.S. Starcom. "Sky Communications will be the cornerstone for the pre-paid distribution side of our business and this acquisition will greatly expand our revenue growth in the coming months. We plan on closing the transaction quickly, and incorporating their results in our first quarter. Our VP of sales, Vincent Annunziata, will be assisting Sky management in quickly ramping up sales, while adding thousands of additional retail outlets," said Mr DiDomenico.

About U.S. Starcom: A leader in providing value added prepaid services and solutions to enhance communications and entertainment. With a sales distribution network extending to thousands of urban locations, and with no long term debt, U.S. Starcom will continue its rapid expansion into the distribution of alternative communication products and services, including international long distance, prepaid phone cards, wireless dial around applications, stored value services and Internet service enhancements. U.S. Starcom is committed to providing affordable access to the latest entertainment offerings from the recording industry through strategic alliances and joint distribution campaigns.

Safe Harbor Statement: This press release contains forward-looking statements that involve risks and uncertainties. This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," "promise," "seeking to," "negotiating to" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.


            

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