Shared Technologies Cellular announced today at its Annual Shareholder Meeting, that it has initiated a series of actions to redirect the Company’s resources in order to compete more aggressively in the marketplace, and to improve the long-term return on investment for shareholders. Included in the structured plan is the reduction and realignment of the Company’s workforce, debt and equity financing, the implementation of new business strategies, the signing of strategic partners, the expansion of distribution channels, and the introduction of new programs to re-energize existing business relationships.
According to Anthony D. Autorino, STC chairman and chief executive officer, the Company has implemented a plan to accomplish three major objectives: improve operating efficiencies, grow top-line revenues, and secure adequate financing to anchor the business. “We reviewed every aspect of our business from top to bottom, to identify the right strategies to accomplish our goals,” said Mr. Autorino. “Our first initiative was to strengthen our management team, which we did by adding David L. Bogue as president and chief operating officer. In this role, David will concentrate on top-line growth, restructuring the corporate and field organizations, eliminating excess overhead, reducing operating expenses, and managing day-to-day operations.”
“My first directive was to develop a structured plan to grow top-line revenues by restructuring the sales and marketing organizations, by strengthening our existing distribution channels, and by penetrating new markets,” added Mr. Bogue. “We have established new policies, procedures and disciplines to ensure profitable future growth. We have taken charge of our own destiny, relying more heavily on our own expertise, innovation, and vision. These initiatives form the essential foundation from which we will launch the only truly national Integrated Communications Program (ICP) in the industry today. Within the parameters of this program, consumers will have access to communication services that range from short-term cellular phone rentals to a full spectrum of prepaid communications services. I believe that STC has a unique asset that clearly differentiates it from the competition, and gives the Company a strategic advantage that will bring added value to customers and shareholders.” STC Sets New Course at Annual Shareholder Meeting Page 2
In the second quarter, the Company secured agreements to provide, for the first time ever in the prepaid industry, the One Card Does It All(TM) platform to retailers, resellers and private label agents. This multi-purpose prepaid card allows consumers to purchase prepaid cellular, paging, long distance, Internet and local access services utilizing a single card. Available in various denominations, these cards are designed to be swiped at the register to control retail shrinkage. Future growth models include the addition of new products including PCS wireless services, Internet devices, and an array of new offers for our prepaid customers.
“In summary, concluded Mr. Autorino, “I believe the actions we are taking are the right ones to spur growth, reduce costs and improve shareholder value. To further strengthen the Company, we have laid the groundwork for raising additional capital, through a combination of warrant exercises and the private placement of Common Stock. We believe with great conviction that we are building a quality company. For STC in 2000, the big challenge is to execute the strategies we’ve put in place.”
Headquartered in Wethersfield, Connecticut, STC is a national cellular services provider with over ten years of cellular experience, offering rental, prepaid, and activation services across the United States. STC offers its rental services through marketing agreements with car rental companies and various airlines and hotels throughout the United States. STC’s prepaid cellular programs are distributed by various partners, including MCI WorldCom, and U.S. South Communications. These programs all employ CellEase®, a universal usage card utilizing technology provided under contract by Telemac Corporation, US/Intelicom, and others. As a reseller or agent for most cellular carriers, STC can offer cellular services to approximately 98% of the U.S. population. Visit the Company’s web sites at www.CellEase.com (retail) and www.sharedcellular.com (corporate).
Any statements released by STC that are forward-looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward-looking statements involve risk and uncertainties which may affect STC’s business prospects and performance. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. It is further noted that data referenced in this release may represent partial data, such as sales results, which are subject to supplementation by other disclosures by the Company. Potential risks and uncertainties may include economic, competitive, governmental, technological, or other factors discussed in STC’s filing with the SEC on forms 10K, 10Q, and 8-K.