PERTH AMBOY, N.J., Dec. 1, 2005 (PRIMEZONE) -- U.S. Starcom, Inc. (Pink Sheets:USTA), a leading provider of valued added prepaid services and solutions to the urban market, announced today that it signed the definitive agreement to acquire Infinite Technology Group, Inc., of Bethpaige, New York, scheduled to close on or before December 15, 2005. Established in 1991, Infinite Technology Group is a broad-based supplier of information technology and other technical services to a variety of Fortune 1000 companies. Their clients include companies such as JP Morgan Chase, Citicorp, Time, Inc. and Hewlett-Packard. They have partnership agreements with Sun Microsystems and Apple Computer.
"This is going to be a very important addition to U.S. Starcom," said John DiDomenico, president of U.S. Starcom. "They bring much-needed technological depth into our organization. Their integration experience brings additional 'tip of the sword' dimensions to TeamStarcom, most notably in financial stored value and eCommerce applications. As the prepaid international and wireless businesses converge with point-of-sale, ATM and other platforms, Starcom is positioning itself to reap the benefits. With Infinite Technology Group CEO Jim Mcgowan and CFO Barry Hintze being added to our management team, we envision our customers being able to enjoy incredible value in using our cards and prepaid cell phones to access money, music and minutes. While we build the products, Jim and Barry bring the capability to integrate entire new systems, within casinos, store networks and other point-of-sale locations. We see huge growth ahead," said Mr. DiDomenico.
"This agreement puts together the first pieces of a puzzle that will take shape over the next several months," said Mr. DiDomenico. "Infinite Technology opens doors to the large corporate systems customer for us. Banks, casinos, sport franchises and betting outlets, resorts and retail chains all become prospective customers for stored value cards and systems. We believe prepaid systems are the wave of the future. Not only do they promote brand loyalty, but billions of dollars are lost in the telecom industry alone due to billing and uncollectible costs. Many potential customers in the faster growing demographics can not buy their products due to stringent credit standards. When you add the burdensome costs spent on wiring money home, it spells huge opportunity," said Mr. DiDomenico.
"We are in active negotiations and expect to announce in coming weeks deals with major industry partners that will start underlining our strategy," said Mr. DiDomenico. "We expect to announce soon a contract with a major record label that will package our cards with their music. We are working with a prominent religious organization that will use our cards for a variety of information delivery purposes and fund raising. We are also in talks with a key electronics supplier in forming a joint venture with a manufacturer of prepaid cell phones that would be loaded with our proprietary cards and pins, allowing calls to and from strategic countries around the globe, with an added ATM/remittance dimension," continued Mr. DiDomenico. "We see where the consumer is heading, and we intend to be there."
Jim McGowan, president and CEO of Infinite Technology Group, said, "We are thrilled to be part of U.S. Starcom and part of a public company. With the joint marketing opportunities this merger provides, and with the several million in retail sales of products and services, we have the potential to add substantially to the revenues of the combined companies."
About Infinite Technology Group, Inc.
Infinite Technology Group, a privately held company headquartered in Bethpaige, New York, is a full service provider of information technology services, including computer back-up, HIPAA, SOX and NASD compliance, as well as internal corporate governance solutions. Their partners include Sun Microsystems, Apple Computer and other Fortune 100 technology providers. Their technical engineers helped rebuild bank clearance systems after 9/11, allowing the markets to reopen 9/15.
About U.S. Starcom
A leader in providing value added prepaid services and solutions to enhance communications and entertainment. With a sales distribution network extending to thousands of urban locations, and with no long term debt, U.S. Starcom will continue its rapid expansion into the distribution of alternative communication products and services, including international long distance, prepaid phone cards, wireless dial around applications, stored value services and Iinternet service enhancements. U.S. Starcom is committed to providing affordable access to the latest entertainment offerings from the recording industry through strategic alliances and joint distribution campaigns.
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