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Titan Corporation Announces the Execution of Definitive Agreements in Nine Countries to Provide Telecommunications Equipment and Services Through Sakon LLC, a Titan Minority Owned Subsidiary Titan and Sakon to Provide Telephone, Internet and Rural Telephony Products, Systems Integration and Services |
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San Diego (April 26, 1999) --
The Titan Corporation (NYSE:TTN) announced today that it has executed
ten definitive agreements with companies in nine countries to provide
satellite based telecommunications equipment and services. The nine
countries where companies that Titan and Sakon have entered into
definitive agreements with include El Salvador, Cameroon, Egypt, Ghana,
Jordan, Kuwait, Pakistan, South Africa and Vietnam.
Under the terms of the agreements, Titan will be designing and deploying a global network of extremely cost effective sophisticated satellite earth station gateways. These centrally managed gateways will also form the basis for offering rural and community Telephone and Internet services. They will utilize Titan Wireless's patented Xpress Connection(TM), Single Channel per Carrier (SCPC), Very Small Aperature Terminals (VSAT) and our powerful Demand Assigned Multiple Access (DAMA) network control systems in these countries. This global network will enable our in-country partners to provide for the first time the full range of new services such as voice, data, Internet, virtual private networking (VPN), faxes and other innovative services in prepaid and conventional customer care arrangements to unserved communities and remote locations. These services are in great demand in these countries to better serve consumers, small and medium enterprises (SME), Multinational Companies (MNC) and Small Office/Home Office (SOHO). This global network will provide service later in 1999 utilizing existing conventional geostationary satellites and will enable Titan and Sakon to provide our partners in these countries with these new services at lower costs than any other technology available today. In addition to selling or leasing the satellite ground equipment, under the terms of the agreements, Titan will also participate in the revenue and profit generated by the traffic carried over the system. Commenting on the release, Titan's President and Chief Executive Officer, Gene W. Ray stated, "In 1998, Titan entered into a strategic relationship, which included an ownership position, with Sakon LLC, to help accelerate the growth of our commercial telecommunications business. We believe that the Titan and Sakon team is successfully executing that strategy, while also providing Sakon and its customers enhanced service and capability through Titan's satellite ground equipment and overall system integration expertise." Ray went on to say, "Our arrangement with Sakon allows Titan the opportunity not only to sell, lease and integrate our satellite ground equipment, but also an opportunity to share in the revenue from the traffic that the system generates." Ray concluded, "We believe that the Titan and Sakon arrangement affirms our strategy of working with strategic partners to help generate growth for our businesses and of creating value for our shareholders." The Titan Corporation is a leading provider and integrator of state-of-the-art information technology, satellite communications systems and services, and medical product sterilization and food pasteurization products and services. In addition to maximizing internal growth, Titan employs a strategy of acquiring businesses that can be readily integrated into its existing core businesses in order to increase profitability and grow market share. The firm has annualized sales in excess of $340 million with a total backlog of more than $800 million and has 2,200 employees. Titan Corporation is headquartered in San Diego, CA. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the Company's entry into new commercial businesses, dependence on continued funding of U.S. Department of Defense programs, government contract procurement and termination risks, and other risks described in the Company's Securities and Exchange Commission filings.
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