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| Cygnal Technologies launches CygnalConnex network services business |
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| July 19, 2005 |
MARKHAM, ONTARIO, July 19, 2005 – Cygnal Technologies Corporation (TSX:CYN) today announced the launch of CygnalConnex, a network services business that sells bandwidth and internet services to Canadian enterprise, retail, commercial and municipal customers. CygnalConnex has signed approximately 45 customers to service agreements which, when fully operational, will generate recurring revenues totaling more than $235,000 per month.
Combined with Cygnal’s core expertise in the design, installation and management of wide area networks, CygnalConnex enhances the Company’s position as a single source provider of services that bridge the gap between customers’ traditional voice systems and next generation Voice over Internet Protocol (VoIP) technology.
“CygnalConnex is an example of our ongoing strategy to broaden the range of complementary network services and integration support we offer our customers,” said Todd Rutherford, President, Cygnal Network Solutions. “As Canada’s largest independent communications and networking integrator, our strength is an ability to select the most suitable network from numerous service providers and offer our customers a premier solution that delivers advantages in price, performance, redundancy and reliability.”
Through CygnalConnex, the Company sells network services at a fixed monthly price with contract lengths ranging from one to 10 years. Once the services are fully implemented, existing contracts will generate $2.7 million of revenues on an annualized basis, and $14.2 million over their lifetime. These revenue figures include several previously announced customer relationships. Cygnal recently stated a goal of growing its network services sales over the next few years to approximately 15-20% of Network Operations revenues, which were $74 million in fiscal 2004.
Cygnal has signed master or service agreements with selected telecom carriers, cable companies, internet service providers, utilities, wireless providers and a number of specialty market providers. Collectively these agreements provide a range of choice that enables CygnalConnex to offer competitive solutions both for clients’ primary network services and their diverse secondary or redundant network strategy.
About Cygnal
Cygnal Technologies Corporation is a leading Canadian provider of network communication solutions including the design, installation, maintenance and management of wired and wireless communication networks. The Company offers a full range of technologies and solutions for service providers and enterprise customers. Cygnal has expertise in voice, video and data solutions over traditional and next generation converged technologies.
Cygnal Technologies Corporation is headquartered in Markham, Ontario and supports end-user customers and business partners through 14 offices across Canada, including Vancouver, Edmonton, Calgary, Winnipeg, London, Burlington, Brampton, Toronto, Sudbury, Ottawa, Montreal, Quebec City and Halifax. Cygnal common shares are listed on the Toronto Stock Exchange under the symbol CYN.
No stock exchange or regulatory authority has approved or disapproved of information contained herein. Certain information included in this news release is forward-looking and is subject to important risks and uncertainties. When used in this news release, the words "believe", "intend", "estimate", "expect", "plan" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things, the impact of price and product competition, the ability of the Corporation to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner, general industry and market conditions and growth rates, the impact of consolidations in the telecommunications industry and stock market volatility. For additional information with respect to certain of these and other factors, see the reports filed by Cygnal Technologies with applicable Canadian securities administrators. Cygnal Technologies disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
David Horsley
Senior Vice President and Chief Financial Officer
Cygnal Technologies Corporation
905-944-6500
dhorsley@cygnal.ca
Jeff Codispodi
Investor Relations
The Equicom Group Inc.
416-815-0700 ext. 261
jcodispodi@equicomgroup.com
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