TORONTO, Nov. 29, 2001 (PRIMEZONE) -- Orbit E-Commerce, Inc. (the "Company") (OTCBB:OECI) today announced that the Company has signed two-way agreements with one of the largest Asian-based telecommunications companies and a major American-based wholesale carrier. In the first year of these one-year renewable agreements, Orbit looks forward to generating additional revenue in excess of US$2.5 million from these new relationships. As a result of these agreements, Orbit expects to deliver millions of minutes worth of calls each month in Canada over its national VoIP network on a wholesale basis -- utilizing excess network capacity. At the same time, these agreements allow Orbit to reduce its costs and improve the quality of international calls originating on its network.
While these agreements enable Orbit to produce immediate revenue from the utilization of surplus capacity at any of its Canadian Points of Presence, as a condition of these agreements, all parties recognize that Orbit's first priority is to its retail clients. This means that as consumer demand for the Company's services continues to increase, network capacity will be re-allocated to serve these retail clients. In effect, these agreements represent a win-win situation for Orbit in that the Company will be generating additional cash flow at virtually no incremental cost by utilizing existing network infrastructure. Orbit is also in the process of negotiating similar agreements with two other significant telecommunications companies in North America to provide similar services in order to diversify the Company's client base.
These agreements also provide Orbit with lower costs for the delivery of calls originating on its network and by "trading minutes" with these organizations rather than paying cash for the delivery of international calls, the Company's cash flow will improve. These agreements also validate Orbit's VoIP network and its underlying technology as these organizations will only work with partners that can deliver calls with demonstrable reliability and quality.
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 PCs of 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.