Contact Information: Contact: Jack Eversull The Eversull Group 972-378-7917 972-378-7981 (fax) E-mail: Web Site: www.atsi.net
Wells Fargo Provides $3 Million Financing to ATSI Communications
| Source: ATSI Communications
SAN ANTONIO, TX--(Marketwire - December 12, 2007) - ATSI Communications, Inc. (OTCBB : ATSX )
today announced that the Company has entered into a $3 million accounts
receivable financing agreement with Wells Fargo Business Credit, a division
of Wells Fargo Bank, N.A. (NYSE : WFC ). This transaction provides ATSI
with a consistent source of flexible, low-cost financing that will enable
it to significantly reduce its factoring expense and strengthen its capital
structure while funding its growth initiatives in its global VoIP business.
Brad LeFevre, VP of Wells Fargo Business Credit, stated, "We are impressed
with the Company's track record and financial performance and are pleased
to have the opportunity to work with ATSI. We expect that our accounts
receivable funding will facilitate the Company's continued growth and
business expansion. We look forward to working with ATSI in meeting its
future goals."
Antonio Estrada, ATSI's VP of Finance and Corporate Controller, added, "The
financing with Wells Fargo will support the execution of our business plan
for FY2008 and provide us with increased cash management flexibility. This
is a great example of how we are securing new sources of capital while
reducing costs. As we grow our customer base, accounts receivable financing
will become an increasingly important source of
low-cost funding for our business."
ATSI Communications, Inc. operates through its two wholly owned
subsidiaries, Digerati Networks, Inc. and Telefamilia Communications, Inc.
Digerati Networks, Inc. is a premier global VoIP carrier serving rapidly
expanding markets in Asia, Europe, the Middle East, and Latin America, with
an emphasis on Mexico. Through Digerati's partnerships with established
foreign carriers and network operators, interconnection and service
agreements, and a NexTone powered VoIP network, ATSI believes it has clear
advantages over its competition. Telefamilia Communications provides
specialized retail communication services that includes VoIP services to
the high-growth Hispanic market in the United States. ATSI also owns a
minority interest of a subsidiary in Mexico, ATSI Comunicaciones, S.A. de
C.V., which operates under a 30-year government issued telecommunications
license.
The information in this news release includes certain forward-looking
statements that are based upon management's expectations and assumptions
about certain risks and uncertainties that can affect future events.
Although management believes these assumptions and expectations to be
reasonable on the date of this news release, these risks and uncertainties
may cause actual events to differ material from managements those contained
in this news release. The risks and uncertainties include, but are not
limited to, continuing as a going concern, availability and cost of our
present vendors and suppliers, and absence of any change in government
regulations or other costs associated with data transmission over the
Internet or termination of transmissions in foreign countries.