Company Forecasts Annual OverHead Cost Reduction of $180,000 USD
Thursday August 26, 2004 10:00 am EDT
MADRID, Spain --August 26th, 2004 -- ITS Networks Inc (OTCBB:ITST) today
announced the implemention of another important step in cost reduction by
moving its European Head Office from Marbella to Malaga.
ITS Networks, Inc., announces moving their corporate offices as well as the
head office of its fully-owned Spanish company, Teleconnect, from Marbella
to Malaga. Teleconnect has signed a three-year renewable lease for office
space in the technology park of "Parque Tecnológico de Andalucía", the newly
created and government sponsored office valley for telecommunications and
technology companies.
The site will house the executive offices along with all the core business
activities which include: finance, operations, sales & marketing, technology
and customer support. Any non-core activities will be subcontracted out to
realize additional savings in fixed overhead costs. The new building offers
ample space to meet the Company´s current needs along with the opportunity
for ITS/Teleconnect to expand as the company continues its steady growth.
ITS Vice President and Teleconnect CEO, Herman de Haas states, "The
principal reason for moving is to achieve the maximum cost reductions in
order to reach operational breakeven before the end of the year. The
decision to select modest but modern offices outside of Marbella is in line
with our tough "no frills" philosophy of conserving cash as long as possible
and investing shareholders money in revenue-generating activities. This
move will add over 13,000 euros (nearly $16,000 USD) a month to our bottom
line or more than 150,000 euros ($180,000) per year. "
ITS President, Gustavo Gómez, continues, " In addition, we have also
renegotiated our lease in Madrid´s Carrier House 1; where our switching
equipment is currently located. We have slightly reduced the space leased
and reorganized the equipment in place in order to bring additional savings
to our operational costs.
"Madrid is the telecommunications centre of Spain where all major telecom
deals are negotiated and closed. If we are going to maximize the
probability of success in realizing the desired cost reductions while at the
same time launching new services for our clients, we must be ready to play
on the same playing field as our competitors. Our location at Carrier House
1 in Madrid provides ITS Networks with an ideal base from which to launch
the new products and services we have planned as well as to interconnect
with other carriers". Gomez added.
The expected Corporate Headquarters move date is October 1st, 2004.
About ITS Networks:
ITS Networks, Inc. through its wholly owned subsidiary Teleconnect
Comunicaciones S.A., a Spanish telecommunications company, is a major player
in the prepaid telecoms industry in Spain. ITS Networks, Inc. is traded on a
U.S. stock exchange, the Over The Counter Bulletin Board (OTCBB). ITS
Networks provides commercial and residential users in Spain with a very
competitive array of prepaid services. www.teleconnect.es
Contact Information:
Rick Lutz
LC Group
404-261-1196
lcgroup@mindspring.com
Forward Looking Statements:
Except for the historical information contained herein, the statements in
this press release are forward-looking statements that involve risks and
uncertainties. Potential risks and uncertainties include, without
limitation, continued competitive pressures in the marketplace; the effect
competitive and economic factors and the Company´s reaction to them may have
on consumer and business buying decisions with respect to the Company´s
products; the ability of the Company to make timely delivery of new products
and successful technological innovations to the marketplace; the continued
availability of certain components and services essential to the Company´s
business currently obtained by the Company from sole or limited sources.
More information on potential factors that could affect the Company´s
financial results is included from time to time in the Company´s public
reports filed with the SEC
|