Message #10 From:
NewsBot Date: October 19, 2006 05:00:00 AM
TLCO News Teleconnect Signs Letter of Intent to Acquire Majority Stake in Star Mobile Solutions S.L.
MADRID, Spain--(BUSINESS WIRE)--Teleconnect, Inc. (OTCBB:TLCO) announced today that it has signed a
Letter of Intent to purchase a majority stake in Star Mobile Solutions
SL (SMS); a Spanish mobile phone repair company. Though the terms of the
agreement have not yet been released, the acquisition, which is expected
to be executed before the end of December 2006, will immediately double
Teleconnect’s turnover and bring a positive
Net Income contribution to the Company’s
consolidated financials.
Teleconnect Inc. President, Gustavo Gomez explains, “We
have identified SMS as an attractive potential acquisition due to its
complementary nature to our expansion strategy and its bottom-line
profitability. SMS will allow Teleconnect to start offering value-added
services to mobile phone users in line with our business plan. Expanding
to other markets will be more attractive if we include in our portfolio
mobile prepaid services in addition to our fixed-line prepaid service
offering.”
About Star Mobile Solutions SL:
Star Mobile Solutions SL is a privately held mobile phone repair
organization set up in 2002 in Madrid Spain. They have grown
exponentially in the market, becoming number 5 of 14 similar companies.
SMS has experienced 90% annual growth since inception reaching an
estimated 7,8M€ turnover by the end of 2006.
Today, SMS has over 100 people on staff and 4 locations and require
investment to keep up with customer demands for additional service. They
plan to again double turnover and profit within the next 2 years.
About Teleconnect:
Teleconnect Inc. through its wholly-owned subsidiary Teleconnect
Comunicaciones S.A., a Spanish telecommunications company, is a major
player in the prepaid telecoms industry in Spain. Teleconnect Inc. is
traded on a U.S. stock exchange, the Over The Counter Bulletin Board
(OTCBB) with trading symbol TLCO. Teleconnect provides commercial and
residential users in Spain with a very competitive array of prepaid
services. www.teleconnect.es
Forward Looking Statements:
Except for the historical information contained herein, the statements
in this press release are forward-looking statements that involve risks
and uncertainties. Potential risks and uncertainties include, without
limitation, continued competitive pressures in the marketplace; the
effect competitive and economic factors and the Company's reaction to
them may have on consumer and business buying decisions with respect to
the Company's products; the ability of the Company to make timely
delivery of new products and successful technological innovations to the
marketplace; the continued availability of certain components and
services essential to the Company's business currently obtained by the
Company from sole or limited sources. More information on potential
factors that could affect the Company's financial results is included
from time to time in the Company's public reports filed with the SEC.
