EXHIBIT 20
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
--------------------- --------------------------------
Xxxx XxXxxxxx, OPUS Group
(000) 000-0000
e-mail: xxxxxxxx@xxxxx.xxx
AVTEL AND MATRIX SIGN DEFINITIVE AGREEMENT CREATING A BROAD-BASED, SINGLE-SOURCE
--------------------------------------------------------------------------------
TELECOMMUNICATIONS CARRIER
--------------------------
EXPANDED PORTFOLIO OF TRADITIONAL TELECOMMUNICATIONS SERVICES CROSS-MARKETED
WITH ADVANCED DATA NETWORKING BUSINESS SERVICES TO BE OFFERED
Santa Barbara, California, April 30, 1997---AvTel Communications, Inc.
(OTC: AVCO) today announced the execution of a definitive agreement to acquire
100% of Matrix Telecommunications, Inc., a domestic and international long
distance telephone company with a customer base of more than 250,000. All of the
outstanding shares of privately-held Matrix will be exchanged for 34,590,049
shares of newly-issued AvTel common stock, representing approximately 79% of the
outstanding capital stock of AvTel on a fully-diluted basis. Simultaneous with
the closing of the acquisition, AvTel expects to effect a reverse stock split of
its common shares, the ratio for which has not been finalized. The transaction
is subject to approvals by the shareholders of AvTel and Matrix.
Upon completion of the transaction, Matrix will become a wholly-owned
subsidiary of AvTel. Headquarters for the combined companies will remain at
AvTel's location in Santa Barbara, California and Matrix operations will
continue to be located in Ft. Worth, Texas. Management will remain in place at
both companies, with Xxxxxxx X. Xxxx continuing as Chairman of the Board and
Chief Executive Officer, and Xxxxx X. Xxxxxx continuing as Executive Vice
President and Chief Operating Officer. Xxxxxxx Xxxxxx will continue as President
of Matrix.
Xx. Xxxx commented: "This acquisition substantially expands our product
offerings and back office capabilities, enabling both companies to cross-market
an expanded portfolio of voice, data and video services to corporations and
individuals. Customers will now receive value-added service benefits from
Matrix's advanced call center operation and flexible billing capabilities."
-MORE-
20
AVTEL AND MATRIX SIGN DEFINITIVE AGREEMENT
-2-
Xx. Xxxx added: "We will cross-sell Matrix's telecommunication services
with AvTel's integrated portfolio of data, voice and video network services to
corporate customers, forming a variety of robust internetworking solutions for
small- to mid-sized businesses. We also expect to increase Matrix's sales and
marketing activities, and to expand its network infrastructure."
Matrix is fully certified by the FCC and registered in all 48
contiguous states and Hawaii. In addition, the company holds billing agreements
with all the Regional Bell Operating Companies and other independent telephone
companies. Matrix provides domestic and international long distance telephone
service, wireless paging, 800 numbers and calling cards to individuals and
business customers.
AvTel Communications, Inc. is a non-facilities based telecommunications
carrier that provides a comprehensive array of broadband network services
integrating voice, data and video networking solutions for small- to mid-sized
business customers. AvTel markets a variety of products and services tailored
around its PointStream private-line facilities, FrameLink Frame Relay
facilities, and Internet access through its subsidiaries.
###########
All statements in this press release other than statements of
historical fact are forward-looking statements that involve substantial risks
and uncertainties. Reference is made to the Company's Annual Report on Form
10-KSB for the year ended September 30, 1996 and to the Company's other reports
filed with the Securities and Exchange Commission for a discussion of such risks
and uncertainties and other factors that may have material effect on the
Company's business.
####
21
