SOURCE: Continan Communications, Inc.

March 29, 2007 09:33 ET

Continan Signs a Letter of Intent to Acquire Pacific Telecom Services -- A Key Technical Step to Deploy Its Breakthrough New Super Travel "Kit"

LOS ANGELES, CA -- (MARKET WIRE) -- March 29, 2007 -- Continan Communications, Inc. (OTCBB: CNTN) and Pacific Telecom Services, Inc. ("PTS") announced today that they have signed a Letter of Intent ("LOI") outlining the terms of a proposed acquisition of PTS by Continan. The share exchange agreement is anticipated to be closed by April 30, 2007. Pending a standard due diligence, PTS will become a wholly owned subsidiary of Continan, and will continue operating its switching facilities from its current Los Angeles headquarters.

PTS is a facilities-based long distance carrier and provides A-Z international termination to over 240 countries as well as international origination using local, in-country phone numbers and toll free numbers. These services are used by business and tourist travelers while in various countries to call back to their home country. The company's primary focus in recent years has been in establishing agreements to operate in the Asia-Pacific and Middle East regions and currently manages several operational service contracts in Japan, South Korea and China.

PTS' customer base includes the following International telecommunications companies -- Onetel, Inc (Korea), Polylink Holdings, Inc. (mainland China), Hanaro Telecom, Inc. (Korea), and Legotel (USA and Middle East).

PTS has a longstanding operational history and has built up its business by exhibiting honesty & integrity with its customers and suppliers. PTS' core competency is in offering a high quality telecom network, and a rapid response to customer needs. PTS has succeeded by always emphasizing quality over quantity.

Upon the successful close of the transaction, Continan intends to establish a redundant platform within the PTS Los Angeles facility that will support its proprietary software for the US market. Continan's primary service platform is currently located in Paris, France. The Paris platform will continue to support the company's travel-related services rollout for the European market.

"This is a great opportunity," said Mike Haley, PTS' CEO, "to increase the company's international business objectives while growing our worldwide traffic. We now have an immediate opportunity to develop, through the new services offered by Continan, additional markets. We anticipate that these new market segments will increase our sales in the countries where we have been developing relationships in for many years. We have an established and highly trusted professional relationship with the Continan management team and feel confident that our newly combined team will offer the best opportunity for us all to accomplish the Continan goals."

"We are excited to have PTS join our company," said Continan CEO, Claude Buchert.

"PTS' emphasis on delivering superior network services coincides with our strategy to deliver the highest level of quality to our traveling customers. I don't know of any comparably sized operator having and maintaining such a high standard of termination and technical support," said Claude Buchert. "The synergies are readily apparent and the economies of incorporating the PTS network into Continan and its subsidiaries directly correlate to additional savings that enhance our bottom line. We are looking forward to the close of the transaction."

Continan is expected to continue growing its traditional voice origination/termination business as well as developing its Voice Over Internet (VoIP) backbone to support an emerging market for the company.

Continan is the parent company of VocalEnvision, a business unit whose Vocalyz™ wireless Super Travel "KIT" will be released into the market later this second quarter. Vocalyz™ is the first of many wireless solutions being offered by Continan, and comprises a "global mobile" phone for mainstream travelers and business professionals. VocalEnvision maintains its network operations and primary customer service center at its Los Angeles headquarters, and has strategic relationships with several service networks throughout the United States, Europe, and Asia.

The Vocalyz™ service features a teleconcierge; a live operator trained to provide real time interpretation, concierge, reservations, emergency local support and other travel-related services to its users. The service will be available in most major world languages (120 languages) giving users native-language content (NLC) that will maximize their security and convenience while traveling. In addition, the company, through a proposed agreement with an industry leading travel insurance company, will offer a comprehensive in-country travel assistance including emergency services, local health care, and other in-country support to users of its Vocalyz™ international phone service.

Information about the company can be found at http://www.vocalenvision.com

Safe Harbor

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications may arise which could prevent the prompt implementation of any strategically significant plan(s) outlined above. Continan cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in Continan's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise. All product or service names mentioned herein are the trademarks of their respective owners.

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