Teletouch Ends Contracted Call Center Help Desk and Answering Service Businesses; Company Exchanges Current Answering Service A
April 13 2006 - 12:18PM
Business Wire
Teletouch Communications, Inc. (AMEX:TLL) announced today that it
has ended its Answering Service and related Help Desk Services
businesses, effective April 5th. In preparation for the completion
of the previously announced sale of Teletouch's paging assets, the
Company executed an asset exchange agreement with OnCall, a
Tennessee-based paging and answering services company, to exchange
all of Teletouch's answering service accounts for all of OnCall's
paging assets and customer base. The asset exchange agreement
became effective upon the completion of the telecommunications
cutover from the current call center to OnCall. In addition,
Teletouch agreed to cancel the remaining two years of its
previously announced three-year call-center and help-desk services
agreement with Pontiac, Michigan-based GPSi, a leading provider of
Guidepoint(TM) consumer vehicle theft recovery services and
commercial fleet management solutions. The financial impact of both
operations on those of the Company was immaterial, and there would
be no expected service impact on existing answering service clients
or GPSi customers who have purchased vehicle tracking services
through Teletouch or its affiliates. Notwithstanding the above,
Teletouch will continue to work with GPSi as a dealer and
distributor of the Michigan firm's GPS technology and related
services. In July 2005, Teletouch announced a comprehensive dealer
agreement aimed at providing cost-effective fleet-management
solutions for small- to mid-sized businesses and government vehicle
fleets. Guidepoint provides Teletouch with a private-label fleet
management solution, originally sold under the V100(TM): Powered by
Guidepoint(TM) brand. GPSi products can also operate on Teletouch's
own GeoFleet branded location based services application software.
"The answering business and related call center businesses were
primarily eliminated under our continuing efforts to cut non-core
business expenses," said T.A. "Kip" Hyde, CEO of Teletouch. "We are
pleased to have assisted in Guidepoint's growth over the past few
years, the opening of its new call and distribution center and look
forward to continuing our relationship with GPSi, as a core
distributor of its products and services to fleet operators, school
districts, 12-volt retailers." About Teletouch Communications, Inc.
Teletouch offers a comprehensive suite of telecommunications
services to enterprise users, including cellular, two-way radio
communications, GPS-telemetry and wireless messaging services
throughout the United States. TLL acquires, bills and supports a
large, primarily business and government base of subscribers, under
its own network of FCC licensed spectrum in Texas, Louisiana,
Arkansas, Oklahoma, Alabama, Missouri, Mississippi, Tennessee, and
Florida. Teletouch's common stock is traded on the American Stock
Exchange under stock symbol: TLL. Additional information about
Teletouch can be found at: www.teletouch.com. All statements in
this news release that are not based on historical fact are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the provisions of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended (which
Sections were adopted as part of the Private Securities Litigation
Reform Act of 1995). While management has based any forward-looking
statements contained herein on its current expectations, the
information on which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties, and other factors, many of which are outside of our
control, that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors
include, but are not necessarily limited to, those set forth under
the caption "Additional Factors That May Affect Our Business" in
the Company's most recent Form 10-K and 10-Q filings, and
amendments thereto. In addition, we operate in a highly competitive
and rapidly changing environment, and new risks may arise.
Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. We
disclaim any intention to, and undertake no obligation to, update
or revise any forward-looking statement.
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