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IPVO - IPVoice Communications Inc. and TekVoice Communications Inc. Launch Latin America Merger and Acquisition Campaign
Latin America Joint Venture Kicks Off with $3 Million in Annualized Sales Revenue and $20 Million in Sales Revenue under Letter of Intent for Acquisition
6/9/2004 11:37:00 AM

DALLAS, Jun 9, 2004 (BUSINESS WIRE) -- IPVoice Communications, Inc. (IPVO) and TekVoice Communications, Inc. announced today a Latin America merger and acquisition campaign that is part of an overall plan to duplicate the IPVoice business model in the Latin American market.

IPVoice and TekVoice have worked in partnership for more than a year selling IP communication products and services specifically designed for the Latin American market. Recently, the two Companies agreed to convert an IPVoice note into a twenty percent equity stake in TekVoice. IPVoice had previously provided debt financing to TekVoice to support the joint Latin American market development.

Currently TekVoice Communications, Inc. serves an ever-growing Hispanic community in the U.S., and has carrier customers in Central and South America and the Caribbean. Together, the two Companies intend to obtain a public listing for TekVoice by September 2004. TekVoice already has over $20 million in revenue under a Letter of Intent (LOI) agreement for acquisition, in addition to a core $3 million revenue run rate. TekVoice will concentrate on strategic acquisitions specific to the Latin American market in Voice over Internet Protocol (VoIP), Online Banking and Electronic Security.

Mr. Henryk Dabrowski, CEO of Tekvoice, stated, "We are enthusiastic about duplicating the IPVoice business model for the Latin American market. In addition to helping TekVoice accelerate the process toward establishing an independent public listing, IPVoice will continue to provide TekVoice with support services they have delivered to TekVoice over the last year. We, of course, see the recently acquired subsidiary in Latin America, RKM IT Solutions, as a valuable addition to IPVoice's overall value as a Latin America business partner."

"We believe small companies are the best platform for funding new technologies and winning the initial sales for those new technologies," stated Philip Verges, CEO of IPVoice. "Small companies can provide investors exceptional return potential for these first-to-market successes, whereas the first-to-market success in a larger company is likely to have a minimal impact on stock appreciation. That is provided the larger company can even overcome typical corporate bureaucracy and realize that first-to-market success. With our 20% equity stake in TekVoice, this initiative with TekVoice is intended to expand the overall opportunity for IPVoice shareholders to benefit from first-to-market opportunities in keeping with a small company approach."

About TekVoice Communications, Inc.

TekVoice Communications, Inc. was founded in 2002. It currently provides services in Miami, Fla. and Dallas, to a large number of Hispanic corporate and residential customers. It also provides a complete outsourced billing and call accounting solution to small and medium carriers, with full support for VoIP and WiFi services, as well as providing wholesale carrier services and technologies. Its current market footprint covers almost all countries between Mexico and Argentina, including the Caribbean. (www.tekvoice.com)