| Tue 18 Apr 2006, 11:08 | | Isolution - Completion of the purchase of a 40% eq |
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ILT
ILT
Isolution - Completion of the purchase of a 40% equity stake in Altonet
INTERCONNECTIVE SOLUTIONS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1997/010640/06)
Share code: ILT & ISIN: ZAE000017943
("Isolution" or "the company")
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 MOELA (PTY) LTD
LPC Manhattan Sponsors (Pty) Ltd
(Registration number 2001/009215/07)
Date: 18/04/2006 11:08:10 AM Produced by the JSE SENS Department
