Internet America Announces Proposed Deal With TeleShare and Two Victoria-Based Companies

HostReview.com
Saturday, April 21, 2007; 02:46 AM

Internet America, Inc. announced agreements with three Texas-based entities to acquire wireless Internet service customers and related operating assets. Included in these agreements is the signing of a non-binding letter of intent to acquire substantially all of the assets and assume certain stipulated liabilities of TeleShare Communications Services, Inc., a Crosby, Texas-based wireless Internet service provider. Internet America has entered into consulting contracts with certain members of senior management of TeleShare, including its President, Mark Ocker.

The terms of the transaction with TeleShare are subject to final negotiations and approval of the Department of Agriculture. Under a program administered by the Rural Utilities Service of the Department of Agriculture, TeleShare has a loan commitment and certain outstanding loan amounts providing financial assistance for expansion of broadband services in rural areas. As the new owner of TeleShare, subject to government approval, Internet America intends to continue expansion under the existing borrowing facility.

Billy Ladin, Chairman and Chief Executive Officer of Internet America, said, "The proposed transaction with TeleShare provides Internet America with a seasoned executive team, experienced in wireless technology. We are excited about focusing on adding to our wireless Internet customer base, acquiring this regional operator and continuing aggressive growth by utilizing funds available under their existing borrowing facility. Adding TeleShare will contribute to our stability and return to profitability by wireless growth in the rural markets where broadband services, delivered over wireless networks, are needed and are not subject to the same levels of competition."

Mark Ocker added, "After three years of growth as a wireless Internet service provider, we are excited about joining with Internet America, which will provide us with stronger customer service, support, and administrative resources."

Internet America also announced a binding agreement to acquire substantially all of the assets and assume certain stipulated liabilities of NoDial.net, Inc., based in Cuero and serving Cuero, Victoria, and Goliad, Texas.

Additionally, an agreement was reached to acquire substantially all of the assets and assume certain stipulated liabilities of Shadownet, Inc., a wireless Internet service provider with operations in the Victoria, Texas area. Closing of this purchase is subject to final negotiations and the assignment of certain contracts to Internet America. With the closing of these three acquisitions, Internet America's wireless Internet subscriber count will be between 6000 and 6500 subscribers. Billy Ladin said, "These acquisitions will give Internet America a presence in the geographic region in and around Victoria and allow for continued wireless growth in nearby
rural markets. We are pleased to have reached agreements with both of these organizations."