| Thu 13 Apr 2006, 15:30 | | Interconnective Solutions Limited - Announcement |
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ILT
ILT
Interconnective Solutions Limited - Announcement
Interconnective Solutions Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/010640/06)
("Solutions" or "the Company")
Share code: ILT & ISIN: ZAE000017943
("the group" or "the company")
SENS ANNOUNCEMENT
Interconnective Solutions Limited (ILT), announces that it has completed the
purchase of a 40% equity stake in Altonet (Pty) Ltd which provides Internet and
network services. Interconnective has, in addition to the 40%, secured an
option to acquire a further 11% after 12 months. For this purpose, 3 571 429
shares at an issue price of 21c each have been issued to the vendors, for a
total of R750 000.00.
Altonet is a first tier hosting and data networking company offering world-class
Internet services. Altonet provides dial-up, ADSL and Diginet access. In
addition, Altonet also provides website hosting, server hosting and website
development. These products are complementary to the services offered by
Interconnective, and many synergies are expected from this acquisition.
Interconnective specialises in a broad range of telecommunication services,
including Fax2Email, PC2Fax, Data Storage, VOIP Calls, SMS, Auto
Receptionist and other business services. CEO of Interconnective Solutions,
Mark Smith, said that "The acquisition of 40% in Altonet was an exciting
strategic move for the group, particularly as the group, via its wholly owned
subsidiary, Foneworx, was increasing its business bouquet of services and being
able to package Internet connectivity and related network services was paramount
to our strategy." Smith added that "Foneworx is launching an exciting and
innovative on-line product known as the "Virtual Business Centre" (VBC") which
incorporates over 14 business applications aimed at the SMME market and includes
services such as Voice Over Internet Protocol ("VOIP") and therefore we wanted
to provide users of VBC with affordable and reliable connectivity using the
latest in Internet technology which is monitored 24 / 7 / 365 to ensure maximum
up-time. By packaging the VBC product with connectivity, the client receives a
phenomenal product, with affordable bandwidth and Foneworx will enhance its
earnings via its equity in Altonet. The Virtual Business Centre, which
is an on-lineapplication, is best operated on ADSL or Diginet speeds and will
incorporate email, web hosting and design. It therefore makes good strategic
sense to own equity in the company supplying some of these packaged value-added
services to our VBC clients."
Furthermore Smith says that, "Due to the phenomenal growth of our Fax2Email
subscriber base, the group"s own bandwidth requirements were becoming more
demanding and a large percentage of our expenses was becoming attributable to
bandwidth and it made absolute sense to have equity in Altonet and also re-
direct a large portion of network connectivity via this company, so we enjoy the
upside of the earnings via Altonet and at the same time grow Altonet and its
client base. We are very excited about bundling some of the products and
services offered by Foneworx with those of Altonet and vice versa."
Johannesburg
13 April, 2006
Sponsor: LPC Manhattan (Pty) Ltd
Date: 13/04/2006 03:30:15 PM Produced by the JSE SENS Department
