For Immediate Release
Guest-Tek and Golden Tree Communications to Combine Operations
Irvine, California – (March 2, 2005) – Golden Tree
Communications (“Golden Tree”) today announced that is has entered into a
Letter Agreement to be purchased by Guest-Tek
Interactive Entertainment Ltd., ("Guest-Tek"
or "the Company") (TSX:GTK), a world-class provider of broadband
technology solutions to the hospitality industry.
Golden Tree Communications is a leading provider of
easy-to-use, secure, and affordable high-speed Internet access systems for
hotels principally in the
Merging the operations of the two companies will
create the largest single provider of hospitality broadband services worldwide
with installations in over 2,100 hotels and approximately 300,000 rooms under
Internet connectivity support agreements worldwide. The combined entity will be
the hospitality industry's most complete broadband service provider offering
customers superior service and a broad range of product lines tailored to full
service and select service hotels.
Arnon Levy,
Guest-tek's CEO commented: "By combining our
organizations we have created the leading provider of high-speed Internet
access services to the hospitality industry. As the industry leader, we are
positioned to be the natural choice for customers looking for a long-term
partner that can provide exemplary service and innovative products. This merger
will help facilitate the expansion of services beyond high-speed Internet
access including video-on-demand (VOD), voice-over-IP (VoIP)
and management of the many ancillary in-room internet (IP) enabled services
under one platform. The Company also plans to expand its product offerings into
new markets such as apartments, condos, and university housing."
The Letter Agreement has
received unanimous board of director approval of the respective companies. The
transaction is subject to certain conditions, including completion of formal
documentation, shareholder approval by the GTC shareholders and there being no
material adverse change in the business and affairs of Golden Tree between
The combined entity will be
headquartered in
About Guest-Tek
Based in
About Golden Tree Communications
Golden Tree Communications is a
The above disclosure contains
certain forward-looking statements that involve substantial known and unknown
risks and uncertainties. These forward-looking statements are subject to
numerous risks and uncertainties, certain of which are beyond Guest-Tek's control, including: the impact of general economic
conditions, industry conditions, increased competition, the lack of
availability of qualified personnel or management, fluctuations in foreign
exchange or interest rates, stock market volatility and market valuations of
companies with respect to the announced transactions and the final valuations
thereof, and obtaining required approvals of regulatory authorities. Guest-Tek's actual results, performance or achievement could
differ materially from those expressed in, or implied by these forward-looking
statements and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if
any of them do so, what benefits, including the amount of proceeds, that Guest-Tek will derive there from.
For further information:
Arnon Levy, President & CEO, Guest-Tek,
(403) 444-8488, arnon.levy(at)guest-tek.com;
Geoff Clark, CFO, Guest-Tek, (403)
444-8427, Geoff.clark@guest-tek.com;