OVERLAND PARK, KS--(Marketwire - 07/05/11) - Flint Telecom Group, Inc. (www.flinttelecomgroup.com) (OTC.BB:FLTT - News), an international telecom technology and financial processing organization, today announces that its wholly owned subsidiary, Ingedigit International Inc., has agreed with American First Equity LLC ("AFE") to offer EmpaSys™ services to existing AFE merchant locations across the United States. In addition, AFE will market EmpaSys™ to independent retail locations that use its affiliated merchant processing services. Under the agreement, Flint will share in the customer transaction fees generated from these locations.
American First Equity LLC is a private investment company that, among other activities, owns and operates gas stations with convenience stores. It is a partner in MerchantOne (www.merchantone.com), one of the largest and fastest growing merchant processors in the United States. MerchantOne currently serves over 90,000 retailers, processing their credit and debit card transactions for all major card brands and networks. MerchantOne will immediately begin offering EmpaSys™ to its qualified retail customers.
AFE has successfully completed its first EmpaSys™ installation at one of its South Florida gas station convenience store locations. Training, testing and compliance have been completed at the location and the sale of EmpaSys™ products and services has commenced. During the next month, AFE plans to use this location to train its personnel for installation of EmpaSys™ at other South Florida locations and also to train its sales agents to market EmpaSys™ to independent retailers. As retailers are recruited, EmpaSys™ connects each location to the network and completes the required training and technical support without any direct cost to AFE, MerchantOne or the retailers. Thereafter, the parties share the transaction fees generated from customer transactions.
Oren Manelis, CEO of American First Equity LLC, stated, "We have been searching for quite some time for exactly this type of all-in-one product to add at our retail locations and to offer to retailers that are serviced through MerchantOne. The way we see it, EmpaSys™ services are very competitively priced with excellent profit margins and our portion of the net fee income is pure profit to us. In many of the markets we serve, there are significant populations that require these services every month that currently have to go elsewhere to get them at higher costs and less convenience. Now instead of these customers having to go to one location to pay their utility bills, then another to remit money, another to load a debit card and yet another to buy mobile airtime, they can now come to us, buy gas, their groceries, load debit cards, pay bills, remit money or buy airtime all in one convenient location. It is definitely the way to go to retain existing customers and attract new ones. We are very excited to be working with Flint in this innovative new offering to our clients and customers alike."
Oren Manelis further stated, "With MerchantOne, EmpaSys™ adds a significant new service not traditionally offered by merchant processors giving us a broader product appeal and giving our customers new sources of revenue and profit with no cost or investment and without having to deal with a third party. We have a large marketing force and will get the word out quickly. In our current customer base we believe we have up to 6,000 retailer customers who are suitable merchants for selling EmpaSys™ services immediately. We will, of course, be offering EmpaSys™ to our entire customer base and to new customers right away. At MerchantOne we have many high transaction volume customers and we currently process over 400,000 transactions per day. We therefore expect thousands of daily transactions at approved EmpaSys™ locations as the service is rolled out."
Vincent Browne, Chairman and CEO of Flint Telecom Group, commented, "We are very pleased to partner with American First Equity and its affiliates so early in our relationship with EmpaSys™. This is an excellent opportunity for Flint to partner with leading companies that have been operating for many years that have built up loyal customer bases that trust and rely on them and MerchantOne to successfully run their businesses on a daily basis. We now have the ability to participate in the thousands of transactions per day by American First Equity customers delivering immediate revenue opportunities for Flint. In addition, Flint's own prepaid card and mobile customers will be able to use these locations to reload our cards and 'Flint Mobile' airtime and also to shop in their stores creating a true 'win-win' situation for both companies. We look forward to being a strong and reliable partner to American First Equity and their partners for a long time as we jointly build on each other's strengths."
Mr. Browne concluded, "It is too early to say exactly how much revenue Flint will generate from this relationship in the short term but we expect that the existing market reach of American First Equity and MerchantOne will bring high growth and sustainable revenues starting immediately. This is yet another step toward our stated target of processing in excess of $2 million in daily customer transactions by the end of 2011 from which Flint will generate approximately 1% in fees. If fully achieved, this would see Flint record over $7 million in annual recurring revenues with approximately $3 million in net income from our financial transaction processing segment."
About Flint Telecom Group, Inc.
Flint Telecom Group, Inc. is an international Telecoms Technology Organization with a portfolio of companies that deliver VoIP and wireless communications and prepaid financial products and services globally. Headquartered in Overland Park, Kansas with offices throughout the US, India and Ireland, Flint Telecom Group is a fully reporting company trading on the OTC Bulletin Board® (OTCBB) under the ticker symbol: FLTT.OB. Flint Telecom ranked number 72 in the 2010 Deloitte Technology Fast 500™, Deloitte's ranking of 500 of the fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America. Flint Telecom was founded by a team of telecom and technology experts with a proven track in building and maintaining international technology companies. Additional information may be found at www.flinttelecomgroup.com.
This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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