Business Services Industry
Winncom Technologies Announces Ex-Im Bank Guarantee of $48 Million Portion of Financing for Kazakhstan Communications Network
Business Wire, June 6, 2005
WHEAT RIDGE, Colo. -- ARC Wireless Solutions, Inc. (OTCBB:ARCS) today announced that the Ex-Im Bank has committed to guarantee a portion of the financing necessary for the previously announced turnkey telecommunications project in Kazakhstan of its wholly owned subsidiary, Winncom Technologies Corp. Of the $48 million loan, approximately $44 million would be available for project costs, and $4 million is estimated as financing fees. At this time, financing of an additional $11 million, in addition to any additional fees, is still needed for the estimated $55 million of equipment, engineering, construction and other costs. Societe Generale, New York, NY, would be the guaranteed lender on this portion of the transaction.
Winncom competed with several other telecommunications companies and was awarded the Kazakhtelecom contract, which is subject to certain contingencies, in October of 2004. The contract specifies, among other things, that Winncom is responsible for locating and presenting funding of project costs of approximately $55 million, plus any financing or other fees, to the national telecommunications provider, Kazakhtelecom, which must approve the loan agreement. Winncom will now seek the balance of the financing and respective approvals from Kazakhtelecom in order to satisfy the terms of the Kazakhtelecom contract.
"We are very excited that Ex-Im Bank has agreed to guarantee this portion of the funding for the project," stated Gregory E. Raskin, CEO of Winncom. "It is our intention to now aggressively pursue the remainder of the funding required to proceed with this project and, after the financing and other requirements of the Kazakhtelecom contract are satisfied and approved, ultimately begin construction of this state-of-the-art data network."
Randall P. Marx, CEO of ARC Wireless Solutions, said: "We believe that Winncom has firmly established itself as a leading provider of telecommunications networks both domestically and internationally. We are extremely pleased to have the opportunity to pursue this and other international opportunities with such upside potential. The Company intends to take advantage of the momentum achieved by this news and will do its best to see the project to final approval."
Ex-Im Bank, the official export credit agency of the United States, is in its 71st year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance and direct loans. In fiscal year 2004, Ex-Im Bank authorized financing to support $17.8 billion of U.S. exports worldwide. For more information, visit www.exim.gov.
About ARC Wireless Solutions, Inc.
ARC Wireless Solutions, Inc. is involved in selective design, manufacturing and marketing, as well as distributing and servicing, of a broad range of wireless components and network products and accessories. The Company develops, manufactures and markets proprietary products, including base station antennas (for cellphone towers) and other antennas, through its Wireless Communications Solutions Division; it is a value added distributor of Wi-Fi(R) and other wireless networking products through its Winncom Technologies Corp. subsidiary; and it designs, manufactures and distributes cable assemblies for cable, satellite and other markets through its Starworks Wireless Inc. subsidiary. The Company's products and systems are marketed through the Company's internal sales force, OEMs, numerous reseller distribution channels, retail, and the Internet. ARC Wireless Solutions, Inc., together with its Wireless Communications Solutions Division and its Starworks Wireless subsidiary, is headquartered in Wheat Ridge, Colorado. The Company's Winncom Technologies Corp. subsidiary is located in Solon, Ohio. For more information about the Company and its products, please visit our web sites at www.arcwireless.net, www.antennas.com, www.winncom.com and www.starworkswireless.com.
This is not a solicitation to buy or sell securities and does not purport to be an analysis of the Company's financial position. This Release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in the forward-looking statements and assumptions upon which forward-looking statements are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. See the Company's most recent Quarterly Report on Form 10-Q, Annual Report on Form 10-K and Form 8-K filed on May 12, 2005, for additional statements concerning important factors, such as specific contingencies and uncertainties related to the Kazakhtelecom project, as well as general demand for products, manufacturing costs, customer approvals and competition, that could cause actual results to differ materially from the Company's expectations.
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