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TEK
DigiTel Corporation |
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Investor Relations: |
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Flora Wood/Phil Williams |
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Alphus Inc. |
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1-888-393-4979 or 416-323-3888 |
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TEK DigiTel Reports Successful
Beta Testing of the V-Server iPRO
Second Milestone for Convertible Preferred Shareholders Now Achieved
GERMANTOWN, MD - March 13, 2001 TEK DigiTel Corp. (OTC Bulletin Board: TEKI - news) today announced customer acceptance of the V-Server iPRO which builds on the V-Server iGATE's integration of data routing functionality with a VoIP Gateway in a more robust, scalable and cost effective solution.
The V-Server iPRO was announced as ready for testing January 23 and has undergone testing over the last month in Asia and South America. The iPRO is a model level above the current iGATE product, equipped with 4 voice ports versus the 2-port iGATE, thus accommodating an increased number of simultaneous VoIP calls. Using the underlying core technology and architecture of the iGATE, the iPRO has been designed as a more cost-effective product, by using standardized and widely available components. The iPRO's single LAN, ISDN and Dual-Ethernet interface enables compatibility with any method of Internet access or network configuration. In addition, iPRO can be configured for FXS port or FXO port use facilitating corporate Voice VPN support and the routing of calls to and from PSTN and PBX interfaces. The iPRO has been completely integrated into TEK's proprietary DDA (Dynamic Dialing Administrator) back-office platform, which enables more flexible, faster and easier configuration for end users.
``Now that our iPRO has completed successful beta testing, we are ready to move into full commercial availability, having secured both local and international manufacturing partners to facilitate increased shipment volumes,'' commented Thomas Yang, COO.
This event satisfies the second milestone for conversion of the 2,066,667 outstanding Series A Convertible Preferred shares, which are convertible on a 1:6 basis (one preferred for six new common) in tranches of 25% as each milestone is met. The Board of Directors met on March 5, 2001 in accordance with contractual requirements for the conversion of preferred shares and voted unanimously that beta testing of the iPRO occurred as represented in a customer's written final acceptance and that such testing was reasonably appropriate to evaluate fitness of the tested device for its intended use. The first milestone was for the successful beta testing and written acceptance by a customer of the two port Voice Server, the iGATE. This condition was met in May 1999, although as of December 2000, none of the shares had been converted. TEK had issued the Series A Convertible Preferred shares on July 7, 1998 in connection with its predecessor, Diversified Technologies Inc.'s acquisition of ATC Group LLC. The preferred shares were issued to the prior members of the ATC Group pursuant to the agreement and plan of merger. Shareholders of the Series A Convertible Preferreds are now eligible to convert up to 50% of their outstanding convertible preferred stock subject to the appropriate documentation being supplied to the Transfer Agent. On the fifth anniversary date of the original issuance, the Series A Convertible Preferred shares will be converted into common stock at the above-stated ratio, regardless of whether the remaining milestones have been met. For more information or Transfer Agent coordinates, please call TEK's Investor Relations at 1-888-393-4979.
About TEK DigiTel Corporation (http://www.tekdigitel.com)
Based in Germantown, Maryland, TEK DigiTel Corporation delivers integrated CPE (Customer Premise Equipment) communications solutions optimized for use in SOHO, small- and medium-sized businesses. Working with Service Providers and OEM partners, TEK is focused on integrating fax- and Voice-over-IP (VoIP) technologies with conventional PBX systems and data routing devices to create a low-cost, easy-to-use Internet communications hub. Founded in 1998, TEK is headed by a management team with extensive related experience gained at leading manufacturers and service providers including IBM, Data General, Hughes, Orbital Communications, Bell Atlantic, and GTE.
Statements made in this press release that are not historical or current facts are ``forward-looking statements'' made pursuant to the safe harbor provisions of the Federal Securities Laws. Forward-looking statements represent management's best judgment as to what may occur in the future, but are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected.