TORONTO, Dec. 12, 2001 (PRIMEZONE) -- Orbit E-Commerce, Inc. (the "Company") (OTCBB:OECI) today announced that it has registered Orbit America Inc. in the State of Delaware as a wholly owned subsidiary. Orbit America will build, own, and operate the Company's VoIP network across the United States and will open an office in the New York area in conjunction with the deployment of its first Point of Presence in Newark, New Jersey. This corporate structure allows the Company to continue to operate as a holding company in the same manner as it holds Orbit Canada Inc., a wholly owned subsidiary, which operates the Company's national VoIP network in Canada.
As recently announced, the Company is in partnership with IBM to launch Orbit's services in the New York City area in December 2001 and in six other major urban areas by the end of March 2002. The New York area deployment is on schedule and the Company fully expects to meet its target launch dates for the next six cities. As Company assets will be located in the United States and services rendered directly to American consumers and businesses, it had been advised to establish an operating presence in that country. Indeed, preliminary discussions with major suppliers and potential investors indicate that expansion financing would be more readily available if the Company had an American-based operating entity. Further, with an operating presence in the United States, Orbit America will be better positioned to build relationships with U.S.-based long distance carriers and resellers for the purpose of delivering their traffic over Orbit's networks in that country and Canada.
Orbit's expansion into the United States represents the second phase of the Company's development and follows its successful launch in Canada, where Orbit's services are now available to approximately 80% of the population from Vancouver to Montreal. Over the next 24 to 36 months, Orbit intends to build up to 50 Points of Presence ("POPs") in the United States as well as deploy facilities in major urban centers around the world. The new facilities, as well as the Company's POPs in Canada, will also allow Orbit to market its successfully tested, low-cost Internet-based video conferencing service. It is expected that this service will greatly appeal to the commercial market, which will balance Orbit's strong position in the residential market.
About Orbit Canada Inc. / Orbit E-Commerce Inc.
Orbit Canada Inc. is a wholly owned subsidiary of Orbit E-Commerce Inc. (OTCBB:OECI). Its advanced IP network spans Canada and serves up to 85 percent of the nation's populace. Installation of gateways in the United States is underway. Orbit Canada's VoIP network allows subscribers to use their own telephone equipment to make Internet-routed long-distance calls rather than forcing consumers to connect through PC's or special Internet telephones. The development of this user-friendly VoIP format led Frost & Sullivan to award Orbit the research company's much-sought-after Product Innovation Award. In granting this award, Frost & Sullivan claimed that Orbit's network was a model for entrants into the telecommunications field who want to use the new VoIP technologies.
Forward-Looking Statements
Forward-Looking Statements contained in this press release that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the current views of management with respect to future events and are subject to certain risks, uncertainties and assumptions including potential issues relating to interoperability, inability to introduce new products, changes in market conditions, government regulations, technological changes and other factors. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.