USA: East Coast Beverage Corp. new merger partner signs 3-year contract worth over $12 million in net profits

By Company Press Release | 16 November 2000

East Coast Beverage Corp. (OTCBB:ECBV), the second largest producer of ready-to-drink bottled coffee, yesterday announced that on September 15, its new merger partner, StarTalk Holdings, Inc. signed a three-year contract with a major client. StarTalk is an emerging reseller of wholesale network phone time through the AT&T Network and an Internet Service Provider (ISP) through MCI/WorldCom. Under the terms of the agreement, StarTalk's client agreed to purchase 100 million minutes per month for a 30-month duration. Effective Monday, November 20, all of the circuits will be up and running and StarTalk should begin to generate revenue from this contract. Jack Namer, Chairman and Chief Executive Officer of East Coast Beverage, stated, "By merging with StarTalk and consummating this major contract, management has clearly demonstrated its commitment to leveraging multiple opportunities within today's market. Furthermore, this contract is one of many we intend to deliver through our new telecommunications arm, which is experiencing dynamic growth. Although this contract is unrelated to our beverage division, it will still significantly enhance our shareholder value, which was the ultimate goal of the merge." Continuing, Namer said, "We are extremely excited about the future of our Company and ensure that this blockbuster contract should not undermine the confidence we possess in our beverage division. In both divisions, we will continue to deliver improved shareholder value in the form of rapid revenue and earnings growth. While it may seem an unlikely combination, the opportunities made available by combining the beverage and telecommunications divisions are significant and highlight the trend in both sectors of exploiting cross-marketing methods to enhance overall product sales in both divisions."