Global Capacity, Inc., (parent: Capital Growth Systems, Inc. (OTCBB: CGSY)), the telecom industry’s first logistics company, today announced a significant expansion of an existing network optimization agreement with a long-standing global telecommunications client. Within the scope of the expanded contract, Global Capacity will now provide network optimization services on this customer’s access and voice networks in Europe, Asia Pacific and North America. The term of the initial agreement has been extended to June 30, 2009.
The new agreement builds on Global Capacity’s initial engagement that focused on identifying inefficiencies and cost reduction opportunities across access networks in several targeted countries. Due to the initial success of these projects, the contract has been expanded and extended to encompass both access and voice networks across a broader network footprint representing billions of dollars of annual network spend.
“The extension of our original contract is a resounding validation of our logistics business model," said Patrick Shutt, Chief Executive Officer for Global Capacity. "By expanding our relationship and implementing our optimization analyses across a more expansive network infrastructure, we will help our client maximize the efficiency of its network spend and achieve its long-term profitability goals. We look forward to generating additional cost savings for this customer, while at the same time driving significant revenue for Global Capacity.”
Global Capacity estimates it will generate cost savings of at least 15% of the total annual spend for the networks it analyzes and optimizes. Global Capacity earns contingency fees based on a percentage of the savings identified and implemented on the client’s access and voice networks. In past network optimization engagements substantially similar to this, Global Capacity has identified savings significantly higher than 15%, in some cases exceeding 40% savings.
“We see this contract expansion and extension as a significant confirmation of Global Capacity’s acceptance as a valued partner by market leaders,” said George King, President of Global Capacity. “We are confident that our distinctive network optimization services will continue to drive our robust growth metrics in 2008 and going forward.”
About Global Capacity
Global Capacity is the operating arm of Capital Growth Systems, Inc. (OTCBB: CGSY). The telecom logistics company provides a fully integrated supply chain management system that streamlines and accelerates the process of designing, building and managing customized communications networks. It offers a comprehensive suite of services to enterprises, systems integrators and carrier customers worldwide. Global Capacity has operational centers in Waltham, MA; Manchester, England and Houston, TX; with offices in Chicago, IL; New York, NY; Minneapolis, MN; and Lisbon, Portugal. For more information, please visit www.globalcapacity.com or contact 866.226.4244.
Forward-Looking Statements
Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements.
Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; uncertainty as to the scope or margin associated with future network optimization services, the Company's potential ability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. For further information on factors which could impact the Company and its subsidiaries, and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission, including annual reports on Form 10-KSB, quarterly reports on Form 10-QSB and current reports on Form 8-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Contacts:
Global Capacity, Inc.
Jack Lodge
SVP,
Sales Operations
+1 781-902-5196
jlodge@globalcapacity.com
or
Media,
Analysts:
FD-Ashton Partners
Patrick Van de Wille
+1
312-553-6704
patrick.vandewille@fdashtonpartners.com
or
Investors:
Salzwedel
Financial Communications, Inc.
Jeff Salzwedel
+1 503-722-7300
jeff@sfcinc.com
