American Multiplexer Corporation Signs Memorandum of Agreement With Strategic Investor|
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--June 9, 1998-- American Multiplexer Corporation (AMC) (OTC BB:AMUT - news) announced today that it has entered into a memorandum of understanding (MOU) with Pioneer Communications Pte Ltd., a Singapore-based company.
AMC has appointed Pioneer as its exclusive sales and marketing agent in the Far East. According to the MOU, Pioneer will purchase 1,000,000 shares of AMC stock at $4.50 per share. Pioneer has also agreed to buy an additional 1,000,000 shares within the next 12 months. Pioneer will purchase the additional shares directly from the company or in the open market at a maximum of $8.00 per share. AMC intends to use the proceeds from the initial Pioneer purchase for marketing and sales.
AMC has developed a unique digital subscriber loop (DSL) called DigiCop(TM), which enables transmission of both voice and data over conventional copper telecommunications lines. In the following weeks, Pioneer will demonstrate DigiCop to three major companies in Malaysia, Indonesia and Thailand.
''DigiCop offers these companies a unique solution to DSL service without the risk of premature commitment to a technology that may not be adopted as a standard,'' said Edward Tan, president and CEO of AMC. ''In addition, AMC is in discussion with telephone companies in the United States and Canada.''
AMC estimates that DigiCop will work on 80 percent of the existing telecommunications and data networks. This new product can operate from 64 kbps to 2 mbps without the use of a modem, and allows simultaneous digital and voice traffic on the same line.
The DigiCop technology is protocol independent. It allows telephone companies to offer a high-speed digital Internet service at an affordable price to their subscribers. Telephone companies can purchase DigiCop at a nominal cost because it is easy to install and requires no expensive central office equipment. More over, it offers maximum flexibility for expansion to higher bandwidths.
About American Multiplexer Corporation
American Multiplexer Corporation was created through the acquisition of Temasek Telephone Company. Temasek has developed and marketed advanced telecommunications products including multiplexers since 1991.
AMC also produces the MUX-6 product which is capable of creating six separate, standard telephone lines from one single pair of twisted copper wire. The MUX-6 is a further development of the original Temasek technology geared for commercialization to a worldwide customer base. A wholly owned AMC subsidiary in Malaysia is dedicated to research and development activities.
Corporate headquarters are in South San Francisco, Calif. For more information, please visit our Website at www.amux.com.
Patricia Colby, 408/293-8600
American Multiplexer Corp.
Edward Tan, 650/875-6666