RENO, Nev., Sept. 8, 2004 (PRIMEZONE) -- ICM Telecommunications, Inc. (Pink Sheets:ICMH), a rapidly growing provider of prepaid stored value debit cards activated at Point of Sale (POS) and ATM cash machines nationwide, announced today that it has signed a Letter of Intent to acquire GLOBALCash, Inc., a Nevada corporation.
GLOBALCash is the stored value ATM debit card division of PayStar Corporation (Pink Sheets:PYST). This proposed acquisition further accelerates ICM's strategic growth program. The agreement calls for an undisclosed amount of cash and ICM stock, as well as future shared revenue earn outs between ICM and PayStar Corporation.
"This acquisition, scheduled to close by October 1, offers ICM an immediate opportunity to increase the company's assets and revenues. We also will gain a significant advantage by inheriting PayStar's experienced management team," said ICM's Chairman & CEO, Doug Hamby.
"We look forward to completing the ICM agreement," said PayStar's Chairman & CEO, William Yotty. "GLOBALCash's prepaid and stored value products will benefit ICM, and the completed transaction will enhance shareholder value as GlobalCash has an agreement to provide a nationwide federal government project with prepaid ATM debit cards to millions of underserved and unbanked individuals."
"The revenue potential coming out of the nationwide federal government project makes this proposed acquisition extremely attractive for ICM," said Hamby. "At an estimated rate of 40,000 cards per quarter, during the first 12 months of operations, the company will generate more than $1.5 million in revenues. In the second year, the addition of another 40,000 cards per quarter, along with a steadily growing stream of residual commissions, result in cumulative revenues under this contract of more than $7 million. By the end of 2006, cumulative revenues could reach the $9 million level."
Headquartered in Lodi, California, PayStar Corporation (www.paystar.com) is a growing provider of stored value products, financial services and Internet terminals through three fully integrated divisions. It provides its distributors and clients with a suite of prepaid, stored value products. PayStar is also a partner in a program for a federal government project that will enable millions of underserved, unbanked, and subsidized housing individuals access to prepaid ATM cards.
ICM Telecommunications Inc. (www.icmtelecom.com) is the exclusive distributor of debit instruments for Secure Financial Solutions Inc. which is in partnership with Sutton Bank. That bank's status as a premier card issuing financial institution permits its customers all the benefits of other ATM debit cards. ATM locations, and virtually all retail establishments, give card users several hundred thousand places where their cards will be immediately acceptable and honored.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance, or expectations expressed or implied by such forward-looking statements.