INDIANAPOLIS, Nov. 25, 2009 (GLOBE NEWSWIRE) -- InteleCom, Inc. (Pink Sheets:IECM) (www.intelecomplus.com), a leading provider of international VoIP communications who has sold telephones and VoIP service to over 122 countries, announced today that the company has terminated its alliance with WorldTel Xchange, Inc.
In a press release dated March 24, 2009, the company reported that "The powerful alliance between WorldTel Xchange and InteleCom was undertaken to respond to this unique market niche and will give MSI and its members a considerable advantage in the marketplace to attract home and small business owners to this new cutting edge technological advance in telecommunications."
According to a release dated March 16, 2009, the alliance was to further incorporate "The '1 Button to Wi-Fi' solution developed by WorldTel Xchange as the first and only, consumer-located, Voice over Internet Protocol ("VoIP") switching device that enables both Fixed VoIP (Home Phone) and Cellular VoIP (Cell Phone Wireless Calling) for the individual and commercial enterprise consumer." Further, "Projected revenues for 2009 are forecasted to be in excess of $30 million in addition to the $402,000 of earned revenues. This projection is partially based on the sale of the two products currently being sold, but primarily on the 1 Button to WiFi and a World Cell Phone soon to be introduced. Master distributors have been lined up in over 10 countries and an exclusive distributorship is being negotiated for the country of Israel, which has over 7 million cell phone users."
InteleCom entered the alliance with WorldTel Xchange after a lengthy due diligence period. The structure of the alliance was strong; unfortunately WorldTel Xchange could not and did not provide the equipment nor the services required to fulfill the projected plan. InteleCom relied on internal management but more importantly relied heavily on outside consultants to perform the necessary due diligence of WorldTel Xchange. The alliance began to unravel recently as orders could not be met by WorldTel Xchange and upon even more recent investigation, WorldTel Xchange, a private company, is now embroiled in numerous lawsuits involving a hostile takeover, upon learning of these most recent events, InteleCom terminated the alliance with cause and cut all ties with WorldTel Xchange.
InteleCom did not stand idle during the past months, but rather made internal changes to decrease costs, created a stronger corporate structure, and posted their first quarterly profit. InteleCom president and CEO John A. Roberts, Jr. added the following comments, "The past months have been very disappointing in respect to WorldTel Xchange. We have also terminated certain contractors and/or associates involved with said process." Mr. Roberts is enthused about future prospects for InteleCom and went on to state, "We have made numerous tough decisions that changed the direction of the company. With this said, we posted our first quarterly profit, and plan to continue down the road of profitability. We have restructured our new and improved VoIP plan at a more affordable rate to the consumer, our distributors are very enthusiastic, and we plan on announcing this plan in the very near future."
About InteleCom, Inc.: InteleCom, Inc. is an 11-year-old company that has provided value-added telecommunication and technology products, including Internet phone service through its other division InteleFone.
Statements contained in this news release, other than those identifying historical facts, constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions as contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company's future expectations, including but not limited to revenues and earnings, technology efficacy, strategies and plans, are subject to safe harbor protection. Actual Company results and performance may be materially different from any future results, performance, strategies, plans, or achievements that may be expressed or implied by any such forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements.