ICCA Acquires Second Largest ISP in Chile

Abstract

RDC is Chile's second largest Internet Service Provider serving the business community, representing 26% of the dedicated links in Santiago. RDC currently offers Internet access, web-hosting and E-mail to more than 2,800 corporate and individual customers. For the year ending December 31, 1998, RDC's revenues are expected to approximate US$2.1 million, representing a 40% increase over the previous year. RDC also is expected to be EBITDA positive for 1998.

Concurrent with the closing, RDC entered into new three year service agreements with its four largest business customers: SONDA S.A., the largest information technology provider in Chile, and three of the largest universities in Chile, Pontificia Universidad Catolica de Chile, Universidad de Santiago de Chile and Universidad Catolica de Valparaiso. These four customers currently represent approximately 24% of RDC's total revenues.

Oct. 12, 1998--InterAmericas Communications Corp. (NASDAQ: ICCA) announced today that it has acquired 100% of the total shares of Red de Computadoras S.A. (RDC).

RDC is Chile's second largest Internet Service Provider serving the business community, representing 26% of the dedicated links in Santiago. RDC currently offers Internet access, web-hosting and E-mail to more than 2,800 corporate and individual customers. For the year ending December 31, 1998, RDC's revenues are expected to approximate US$2.1 million, representing a 40% increase over the previous year. RDC also is expected to be EBITDA positive for 1998.

Concurrent with the closing, RDC entered into new three year service agreements with its four largest business customers: SONDA S.A., the largest information technology provider in Chile, and three of the largest universities in Chile, Pontificia Universidad Catolica de Chile, Universidad de Santiago de Chile and Universidad Catolica de Valparaiso. These four customers currently represent approximately 24% of RDC's total revenues.

Patricio E. Northland, CEO and Chairman, commented, "This acquisition marks the beginning of what we believe will be InterAmericas/FirstCom's aggressive expansion into the Internet/IP services in the Latin American region. We welcome aggressive ISP entrepreneurs to join the InterAmericas/FirstCom network and are continuing to identify other ISP acquisition candidates in the region."

Mr. Northland added, "The acquisition of RDC provides a platform to offer value added services such as voice-over IP, multimedia broadcasting, electronic commerce and webcasting to the Company's business customers. In addition, it provides RDC's customers access to InterAmericas/FirstCom facilities based state-of-the-art fiber optic network in Chile. We are very pleased with this acquisition and are proud to have RDC's excellent management and its approximately 35 employees joining the InterAmericas/FirstCom family."

InterAmericas Communications Corporation is a new provider of high bandwidth integrated telecommunication services to business customers in Peru and Chile. ICCA is currently completing state-of-the-art fiber optic networks in Peru and Chile and operates a competitive long distance carrier, FirstCom Long Distance in Chile.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The foregoing statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products and prices, and other factors detailed in the Company's filings with the Securities and Exchange Commission which readers are urged to read carefully in assessing the forward looking statements contained herein. SEQN: BW1277