Renegotiation of Major Network Carrier Agreement Expected to Save $150,000
Monthly
DENVER, July 10 /PRNewswire/ -- RMI.NET, Inc. (Nasdaq: RMII), a national
e-commerce/Web solutions and connectivity company, announced today that it has
taken further steps in the implementation of its five-point strategic action
plan introduced last month to achieve profitability.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO )
In addition to the cost reduction measures previously announced, the
Company has successfully renegotiated a major network agreement to
substantially reduce costs while expanding connections. Cost savings are
expected to be $150,000 per month at current capacity. Additional capacity
will carry the same favorable pricing, thereby contributing significantly to
present and future gross margins.
The Company previously announced other economies resulting from a
24 percent workforce reduction and outsourcing its billing system.
"Reducing expenses is a key part of our strategic action plan and we are
in the process of evaluating every area of our business to achieve smart
savings," said Douglas H. Hanson, RMI.NET's chairman and chief executive
officer. "However, cost savings are only one part of our five-part strategic
action plan."
Hanson added, "We will soon be announcing other actions -- both cost
savings and revenue enhancements -- designed to achieve our previously-stated
goal of EBITDA neutrality by December 2000."
Other elements of the Company's strategic action plan are to grow revenues
organically, increase customer retention, develop market driven products and
upgrade its network. RMI.NET has reorganized its executive management team to
focus on achieving these objectives, tying performance evaluation directly to
successful implementation of the plan.
About RMI.NET
Denver-based RMI.NET, Inc., formerly Rocky Mountain Internet, is a
national e-commerce/Web solutions 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 in excess of $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.
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
that could have a material impact on future results. Please refer to the
company's cautionary statements section of RMI.NET's 10-K dated December 31,
1999 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
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