WINNIPEG, Nov. 24, 2011 /CNW/ - Exchange Income Corporation (TSX: EIF)
(the "Corporation" or "EIC"), announced today that its subsidiary,
WesTower Communications, was selected by AT&T Mobility LLC ("AT&T"), a
North American provider of telecommunication services, in a competitive
tendering process as either the primary or secondary provider of
infrastructure services in five geographical regions in the United
States. The award is for a three-year infrastructure service contract
AT&T recently completed a tendering process for its network
infrastructure. This process involved selecting primary and secondary
providers of infrastructure services for all its United States service
areas, which have been divided into 11 geographical regions.
There is no specific dollar amount that is guaranteed as part of the
contract award. The total dollar amount of the award will depend on
AT&T's infrastructure plan, which may vary significantly year to year,
including the type, amount, and location of the work. As a result, it
is difficult for Exchange Income Corporation to quantify the financial
impact of this contract. However, based on the history of AT&T's
infrastructure work over the past couple of years, EIC management
believes that the additional revenue potential from this contract could
be in excess of $500 million over the three-year term of the contract.
This estimate is subject to a number of variables, including the fluid
nature of the telecom environment and the ongoing introduction of new
technology, both of which could significantly impact AT&T's
infrastructure requirements. Accordingly, there can be no assurances of
the revenues that will be generated from the contract.
"The contract significantly extends the work that WesTower currently
performs for AT&T and provides WesTower with a solid base of work in
multiple regions over the next three years," said Mr. Mike Pyle, CEO of
Exchange Income Corporation. "We are very pleased that WesTower was
successful in strengthening its relationship with a company that has
the reputation and presence of AT&T. The award of this contract speaks
volumes about the quality of service that WesTower provides and its
growing presence in the industry."
Mike Jarvis, the CEO of WesTower stated, "For the past number of years,
WesTower has been positioning itself to have the resources,
capabilities, and proven service record with AT&T to be awarded a
contract of this scale. The capital and financial support that EIC
provided to us was a key contributing factor to AT&T awarding us this
About Exchange Income Corporation
Exchange Income Corporation is a diversified acquisition-oriented
company, focused on opportunities in the industrial products and
transportation sectors which are ideally suited for public markets
except for their size. The strategy of the Corporation is to invest in
profitable, well-established companies with strong cash flows operating
in niche markets in Canada and/or the United States.
The Corporation is currently operating in two niche business segments:
aviation and specialty manufacturing. The aviation segment consists of
the operations by Perimeter Aviation, Keewatin Air, Calm Air
International and Bearskin Lake Air Service and the specialty
manufacturing segment consists of the operations by Jasper Tank,
Overlanders Manufacturing, Water Blast Manufacturing, Stainless
Fabrication and WesTower Communications. For more information on
Exchange Income Corporation, please visit www.exchangeincomecorp.ca.
Additional information relating to the Corporation, including all public
filings, is available on SEDAR (www.sedar.com).
SOURCE Exchange Income Corporation
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