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Tuesday
April 23, 2:01 pm Eastern Time
Company Press Release
North
American DataCom Expands Board and Announces Revised Business
Plan
IUKA,
Miss.--(BUSINESS WIRE)--April 23, 2002--North American DataCom,
Inc. (OTCBB:NADA - news) announced today that it had appointed
two new members to its Board of Directors. Jack Freeman has
stepped down as President of the Company, but has become a
member of the Board. The second new Member is Dr. William
Durham, MD, an investor in the Company.
Jack Freeman, past President of Sun America Communications,
has extensive experience in the construction of broadband
networks throughout the US and Central and South America.
Dr. Durham is a major shareholder of the Company, and has
been active in both domestic and international information
technology development. We are both proud and fortunate to
have these gentlemen add their contacts and experience to
our Board.
The Board has approved a revised Business Plan. The revised
plan continues to focus on immediate revenue growth and immediate
reduction of investment and expenses associated with delayed
broadband infrastructure development. ``Our goal continues
to be development of a state-of-the-art broadband network
in the underserved southeast,'' stated Robert R. Crawford,
chief executive officer of North American DataCom. ``The realities
of the current capital marketplace have limited our access
to funds for the investment. The Company has therefore redirected
its focus to shorter-term goals. As discussed in previous
releases, the Company has directed its marketing efforts to
Application Services revenues, such as provided by Global
PTX, to expand data storage (EDS) and broadband services throughout
the rural South. These three markets provide tremendous opportunities
for immediate revenue growth. Our current broadband facilities
of approximately 500 megabytes per second can support our
marketing program through 2003.''
The Company's plan, which was formulated last year with Cap
Gemini Ernst and Young, calls for the construction of a 3,000-mile
fiber optic network throughout the Southeast United States.
The initial wireless and fiber optic network connects our
facility in Iuka, Mississippi, with Memphis and Atlanta. This
connection is tactically and strategically the most critical.
The Company sees a large opportunity for its broadband services
in this region. This region serves 15 of the 62 smaller population
centers and 3 of the major 7 population centers along the
planned network route. To serve the anticipated demand, the
Company has opened approximately 5,000 square feet in its
Major Data Storage Center. The Major Center will eventually
comprise 60,000 of the planned 125,000 square feet available
in the Company's facility in Iuka, Mississippi.
The capital budget over the next 9 months for the expenditures
of the interim bandwidth network, the interim EDS business
and the Global PTX business is estimated at approximately
$5 million. The Company's Revised Business Plan continues
to project operating cash flow to reach breakeven by this
summer. Under the revised Plan, North American DataCom still
expects to have a positive cash flow by this summer, and to
realize profits in the fall of 2002. The Company expects its
9-month results to show a continuing trend of higher revenues
and reduced expenses.
``We remain determined to develop our network and increase
services in the rural South, an underserved area,'' continued
Mr. Crawford. ``Further, we believe this Plan positions us
to benefit from expanding application service and data storage
growth. We expect the capital market to react favorably to
our Plan, and plan to use the equity line of credit announced
last year for capital funding.''
Safe Harbor Statement Statements in this release express management's
beliefs and expectations regarding future performance. These
statements are forward-looking and involve risk and uncertainties.
These risks include, but not limited to, the ability to negotiate
venture agreements, properly identify acquisition partners,
manage and integrate acquired businesses, react to quarterly
fluctuation in results, raise working capitol and secure other
financing, respond to competition and other rapidly expanding
technology, deal with market and stock price fluctuation,
and other risks. These risks are and will be detailed, from
time to time, in North American DataCom, Inc. Securities and
Exchange Commission filings. Actual results may differ materially
from management's expectations.
North American DataCom's principal executive offices are located
at 751 County Road 989, Building 1000, Iuka, MS 38852. For
further information go to our website, www.nadata.com, or
contact Investor Relations, 662/424-5030, and by e-mail at
investorrelations@nadata.com.
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