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Wednesday
April 25, 7:55 Eastern Time
Company Press Release
North
American DataCom Announces Bandwidth Agreement
IUKA, Miss.--(BUSINESS WIRE)--April 25, 2002--North American
DataCom, Inc. (OTCBB:NADA - news) announced today the purchase
of bandwidth through December 2003 and the sale of 505 miles
of fiber optic conduit. These transactions are in support
of the Company's revised Business Plan. The revised Plan,
which was approved by the Board last week, focuses on immediate
revenue growth and immediate reduction of investment and expenses
associated with delayed broadband infrastructure development.
The Company's current broadband facilities of approximately
500 megabytes per second can support its application service
business until the larger network is completed.
The wireless bandwidth was acquired from Corban Communications
in exchange for approximately 2.7 million shares of NADA restricted
common stock. This transaction is valued at $377,622. Also,
the Company entered into a transaction with Qwest Communications
to exchange its 505 miles of conduit from New Orleans to Jacksonville,
FL for $15.12 million of current liabilities. The Company
realizes $721,109 of non-operating income from this transaction
that will be reported in its third quarter 10Q. Management
believes that the exchange of current debt for the conduit
asset has a beneficial impact on its financial condition and
balance sheet.
Robert R. Crawford, chief executive officer of North American
DataCom stated, ``While our goal continues to be development
of a state-of-the-art broadband network in the underserved
southeast, the current capital marketplace forced us to continually
reevaluate our plans. It seems prudent to reduce our investment
at this time.'' The capital budget over the next 9 months
for the interim bandwidth network, the EDS business and the
Global PTX business has been reduced to $5 million. The Company
expects its 9-month results to show a continuing trend of
higher revenues and reduced expenses supporting the revised
plan.
As stated in earlier releases, the Company has redirected
its focus to shorter-term goals emphasizing immediate revenues.
These revenues are being developed through the expansion of
application services (such as provided by Global PTX), the
development of its data storage (EDS) services and the marketing
of broadband services throughout the rural south and elsewhere.
These three services are global in scope and provide tremendous
opportunities for immediate revenue growth. The Company plans
to develop these services throughout the global economy.
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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