TORONTO, Dec. 7, 2001 (PRIMEZONE) -- Orbit E-Commerce, Inc. (the "Company") (OTCBB:OECI) today announced the Company has engaged the services of e-bitda, inc., a New York and Toronto based venture banking firm, to secure capital investment funds. These funds will be used to finance the expansion of the Company's award-winning VoIP service, which has been operating successfully in Canada for a year, into the United States. Orbit also announced today it is finalizing an operating capital investment to ensure its near-term financial obligations are satisfied until the Company generates positive cash flow from the growth of its revenue and subscriber base in Canada and the United States.
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 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.
"Since the announcement of our partnership with IBM, Orbit has been approached by many reputable investment bankers seeking involvement with the leader in VoIP services. Our choice of e-bitda is a reflection of their recognized expertise in working with rapidly growing companies. Their relationships with U.S.-based institutional investors will greatly assist Orbit in realizing its business expansion plans in the United States," said Donald G. Payne, Chief Financial Officer of Orbit. "Engaging e-bitda is a further step in implementing our business plan and will complement the recent agreement to partner with IBM and Cisco to expand our Internet Telephony service into the United States and beyond."
"We are impressed by the quality of Orbit's VoIP technology; the successful commercialization of its services in Canada; and by the technical and administrative ability of the Company's senior management," said Peter D'Cruz, Director of e-bitda. "We look forward to assisting Orbit in sourcing the investment funds required for the expansion of Company's business into the United States".
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.
About e-bitda
With its head office in New York City and an office in Toronto, e-bitda is a premier venture banking firm. From due diligence, deal structuring and mergers and acquisitions advisory, to the development of solid capital structures, the building of objectively researched financial models, and ultimately, the closing of additional rounds of financing by institutional investors, e-bitda's financial managers work with select companies in the post-seed to pre-IPO space to create quickly executable solutions to the complex business issues found in early stage ventures. e-bitda's expertise and clients are in the technology, bio-tech and new media sectors.
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.