StratoComm's Cameroonian Partner Plans Expansion

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Jul 15, 2010, 10:31 ET

ALBANY, N.Y. and EATONTOWN, N.J., July 15 /PRNewswire-FirstCall/ -- StratoComm Corporation (STCO) StratoComm has issued a Purchase Order to acquire the assets required to put into production its first Transitional Telecommunications System, which is earmarked for delivery to Evergreen ISP Platforms, its joint venture partner located in Douala, Cameroon.

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StratoComm's proprietary telecommunications payload commenced operations during the first quarter of this year and presently provides broadband services to the city of Douala, Cameroon. Although the operating system has not as yet reached its subscriber capacity it was determined necessary to go into production of a fully operational TTS to assure uninterrupted expansion of services and achievement of defined milestones.

StratoComm's Interim Telecommunications System operating in Cameroon has successfully validated its capabilities however its limited subscriber capacity, when compared to StratoComm's TTS, requires a planned introduction of expanded capabilities as early as the December 2010 – January 2011 time frame.

A fully operational and subscribed TTS will support annualized revenue in excess of $400,000,000 while operating at EBITDA of approximately 60%. Given the demonstrated quality and reliability of the StratoComm payload presently operating in Cameroon it is anticipated that Evergreen could achieve a minimum of 50% subscriber capacity during its first three years of the TTS's operation. It is presently forecasted that the transition from Interim System to TTS will generate revenue at an annualized rate of $36,000,000 within twenty-four months of launch of TTS services and continue to grow at an accelerating rate to achieve full subscriber capacity during 2014.

StratoComm Corporation is a developer and provider of telecommunications infrastructure technologies with a specific focus to the delivery of ubiquitous and cost sensitive communication services to the developing world. The company is further committed to the allocation of a portion of each system's service capacity for the provision of low cost/no cost social and economic outreach programs.

Safe Harbor Disclosure – This Press Release contains or incorporates by reference "Forward-looking statements," including certain information with respect to plans and strategies of StratoComm Corporation. For this purpose, any statements regarding this announcement, which are not purely historical, are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including StratoComm Corporation beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and based on information available to StratoComm Corporation as of such date. There are a number of important factors that could cause actual events or actual results of StratoComm Corporation and its subsidiaries to differ materially from those indicated by such forward looking statements.

Company web site: www.stratocomm.net

SOURCE StratoComm Corporation