Revolving Credit Agreement to Provide Operational
Needs for the Balance of the Year
DENVER and COLUMBUS, Ohio, May 30 /PRNewswire/ -- Douglas H. Hanson, CEO
and chairman of RMI.NET, Inc. (Nasdaq: RMII), and Steven B. Jaffee, President
of RFC Capital Corporation, announced today that RFC has extended a $12
million Revolving Line of Credit facility to RMI.NET, a national e-commerce
and connectivity company based in Denver.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO )
RMI.NET has pursued an aggressive growth strategy, primarily through
strategic acquisitions and the development and offering of new products
focused on the small to medium size business market. The RFC facility will
serve as another capital component that will enable the company to continue
its growth, both organically as well as through acquisitions when attractive
opportunities exist. Additionally, this capital will offer a valuable
resource to RMI.NET as it continues to make significant progress towards its
stated goal of EBITDA neutral by December 2000.
"The 199 percent growth in revenue from 1998 to 1999 is evidence of
RMI.NET's rapid growth rate," said Jaffee. "We see a bright future for RMI as
it continues its plans to integrate acquisitions and expand its existing
customer base."
RMI.NET has built a nationwide footprint through many strategic
acquisitions. The Company has long offered products beyond the traditional
Internet Service Provider mindset. Products such as AdAdapt, Simplified
Domains and Internet Error Streaming position RMI.NET as an innovator in the
industry. The Company continues to develop and expand itself as a Commerce
Solutions Provider (CSP) by providing e-business applications and business-to-
business products.
"Our success comes from our dedicated employees, our size and efficiency,
and our ability to stay ahead of the customers' needs," said Douglas H.
Hanson, RMI.NET Chairman and Chief Executive Officer. "Possessing the
e-business expertise in-house allows us to stay on the forefront of meeting
our customers' complete needs, a key component to customer satisfaction and
retention."
Hanson added, "At times like this when other internet companies are
struggling to obtain cash, having RFC Capital in our corner gives us the
financial flexibility to move forward on our strategic business plan. A key
element of this credit facility is that it is scalable as we grow, giving us
the ability to grow organically as well as through acquisition."
About RMI.NET
Denver-based RMI.NET, Inc., formerly Rocky Mountain Internet, is a
national e-commerce and connectivity company focusing on solutions for small
and medium-sized businesses. The company specializes in e-business
applications; web solutions, including design, hosting and marketing; and
high-speed Internet access, including digital subscriber line (DSL). RMI.NET
has an annualized revenue run rate of more than $50 million and more than
100,000 nationwide customers. The company wholly owns a shopping, e-commerce
and portal site, http://www.webzone.com, which includes the proprietary search
engine, Infohiway. For more information, call (800) 411-6066, or visit
RMI.NET's web site at http://www.rmi.net.
About RFC Capital
RFC Capital Corporation is a specialized commercial finance company
serving the needs of deregulated, high-growth companies. With a foundation of
serving the Telecom and Internet marketplace, RFC has expanded its focus to
include other deregulating and converging industries. Based in Columbus,
Ohio, the company is an established source of working capital, equipment loans
and mezzanine funding serving the global marketplace.
RFC Capital is a division of Textron Financial Corporation (TFC), a
wholly-owned subsidiary of Textron, Inc. (NYSE: TXT). This relationship
bolsters RFC's industry expertise with more than $7 billion in managed
receivables and expanded capital resources. More information about RFC and
TFC is available at http://www.rfccapital.com and http://www.tfc.textron.com.
This press release may contain forward-looking statements within the scope
of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Although the company believes these statements are based on reasonable
assumptions, it can give no assurance that its goals will be achieved.
Differences between assumed facts and actual results can be material depending
on the circumstances and investors should be aware of the important factors
and risks that could have a material impact on future results, including but
not limited to, the company's inability to increase revenue though organic
growth in the amounts or during the time period projected, the company's
failure to successfully reduce carrier costs, vendor costs, and SG&A expenses
as quickly and efficiently as planned, and the company's inability to raise
additional funding for working capital needs in the future. Please refer to
the company's cautionary statements section of RMI.NET's Form 10-K, dated
December 31, 1999, the company's Form 10-Q, dated March 31, 2000, and other
Securities and Exchange Commission (SEC) filings subsequent to this date.
SOURCE RMI.NET, Inc.
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Related links:
http://www.rmi.net
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO
PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Steven P. Eschbach, CFA, Vice President -
Investor Relations of RMI.NET, Inc., 303-308-2272,
steve.eschbach@corp.rmi.net; or Hillary Jeffers, Vice President
of RFC Capital, 888-732-3863, hjeffers@rfccapital.com
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