News and Views

Destiny Packs Their Bags

It was reported by the Oakland Tribune that Destiny Telecom has left their headquarters in Oakland, California for Dallas Texas. Many of the California employees have been fired, and according to the paper, "About 100 former employees gathered at the Hegenberger Road headquarters Tuesday morning. The angry crowd, locked out of the building, was laid off a week ago but their final checks bounced. They were told that the company would have the money for them Tuesday. The article goes on further stating that "thousands of former and current customers have complained that prepaid phone cards they bought from Destiny don't work." and "Company salesmen have complained to regulators from Florida to California that they haven't received any commissions due them since April." For the complete story, visit http://www.cyberia-ang.com/tribune/o_a_c_t1bs223.htm

Smartalk buys Conquest

Los Angeles, CA, July 31, 1997 (DLD Digest - http://www.thedigest.com) -- SMARTALK(SM) Teleservices, Inc. (Nasdaq:SMTK) today announced the signing of a definitive agreement to acquire ConQuest Telecommunication Services Corp., a Dublin, Ohio-based developer and marketer of prepaid calling cards and other enhanced telecommunications services, including domestic and international calling services for the tour and travel industry. Through a strategic merger with ConQuest, SMARTALK will add more than 6,000 storefronts to its distribution channel, including Winn-Dixie, Marathon Oil, SuperAmerica, Shoppers Food Warehouse, Pick Kwik Food Stores, Spectrum Stores, Weis Markets, and Emro Marketing, which includes convenience stores and service stations such as Speedway, Starvin' Marvin, United, Bonded, Gastown, Cheker and Wake Up. The combined company will have a retail telecommunications distribution channel with access to approximately 35,000 locations under existing distribution agreements.

In the tour and travel industry ConQuest provides long-distance and other operator services to franchisees of Holiday Inn, Ramada Inn, Comfort Inns and Days Inns. In addition, ConQuest provides promotional prepaid calling card services to Catalina Marketing Corp. and Thomas & Howard for use in conjunction with interactive promotions directed to supermarkets, chain drug stores and mass merchandisers. ConQuest also provides enhanced call processing services to long-distance carriers, advertisers and resellers, including a major utility company in the United Kingdom. Additionally, ConQuest processes prepaid wireless calls including prepaid cellular.

``This strategic merger will further strengthen SMARTALK's position as a leader in the manufacturing and distribution of prepaid calling cards. It expands our business by giving us increased presence in supermarkets, convenience stores and service stations. ConQuest's experience in providing operator assisted calling services in the tour and travel industry will add to SMARTALK's ability to maximize it's HFS and Choice Hotel relationships. Also, ConQuest's platform will greatly expand our call processing network adding capabilities to immediately deliver prepaid wireless products and services,'' said Robert H. Lorsch, Chairman and CEO of SMARTALK.

``We are excited about being part of the SMARTALK team. The prepaid calling card industry is consolidating and we believe that this transaction represents a tremendous opportunity for our employees, shareholders and other corporate partners,'' said James Sobwick, President and CEO of ConQuest. ``We plan on being a significant contributor to SMARTALK's prepaid business as well as to the technology that will permit the Company to continue offering the most advanced and complete set of enhanced services in the business. The compatible network architectures and business strategy of SMARTALK and ConQuest should result in a quick and efficient integration.''

SMARTALK manufactures and distributes prepaid calling cards and other enhanced telecommunications products that are sold at retail and also marketed to advertising and promotional clientele. SMARTALK maintains retail distribution agreements with mass merchandisers, consumer electronics retailers, supermarkets and home office superstores, such as Office Depot, Future Shop, Venture Stores, The Good Guys, Staples, Service Merchandise, Jewel/Osco Combo Stores, Osco Drug, Sav-On Drug, OfficeMax, Dominick's Finer Foods, Eckerd Drug, Food4Less, Ralphs Supermarkets, Spencer Gifts, Bradlees, Marshall Field's, Robinsons-May, and Builders Square, as well as university book stores and convenience stores nationwide. The Company also holds a variety of entertainment licenses for phone cards including Star Wars. SMARTALK also offers specialized value-added phone card and promotional programs, supporting a significant client base including Gillette, Hewlett- Packard, Wells Fargo Bank, Nabisco, Pfizer and Prudential Securities.

The Real Estate and Money Show Card

A card has been issued to promote "The Real Estate and Money Show" with Mike and Kathy Martin, the only nationally syndicated radio program over 40 stations in 32 states focusing on real estate in the nation. The cards will be given away with acknowledgments, rewards, etc. primarily to listeners as well as others through a variety of venues and events over the next twelve months.

The card was issued by Gazelle Telecards. 1100 cards, plus 25 test cards have been issued, with 10 minutes of phone time by Cable & Wireless. The cards expire in June, 1998. For further information, contact:

Gazelle Telecards

PO Box 24783

Seattle, WA 98124

(888) 860-93359

metalcore@aol.com

Versace Phonecards

Two different phonecards have been produced in tribute to Gianni Versace.. They have a $20 face value, and are limited to 3000 cards each. Contact Telenexus@earthlink.net or visit http://www.telenexus.com/versace/ for details on how to order this card.

BT Promotional Campaign

Just this last weekend BT started to advertise on TV (lightweight campaign!) a new product/service called "RingMeFree" and I thought that you might like to hear about it. The ad said to call 0800 50 60 00 and we'll send you 10 cards. Well I just did!

1. These only work on domestic phones at present - not call boxes (they're still working on it) - nor business numbers!! They allow your friends and family to call you at home - and that's all they allow - one number access.

2. The card has all the details on the back - including a 12 digit code - like a Telecard.

3. Your family dial the access number and you get charged for the call - plus you get charged 10p for every time they call the access number - "to access our platform which says welcome to BT's RingMeFree" - etc.

4. They're quoting 28 days for delivery, but anticipate quicker response times - it will depend on order volumes!

Once again BT gets it half right. They obviously realise the value of the phonecard but only allowing it to dial your home number - and not repeat not allowing business users - what a faux pas! I'll update you when I receive more information and the cards themselves.

From: Paul West

Junior Achievement

Junior Achievement of Eastern Massachusetts just had a phonecard produced to publicize their annual "Miniture Grand Prix" fund raiser. The fund raiser is a race of mini race cars, bought by local companies that support Junior Achievement. This year's race will be held at Foxboro Stadium (home of the New England Patriots and Revolution Soccer Team). The event will be prior to the last Revolution game of the season - with a crowd of 30K expected.

A run of 500, 22 minute $10 cards was produced by Telenova with time by C&W. The cards are being sold by J.A. at Shell stations where the race is being promoted during events of 99 cent gas, hot dogs and pepsi combo for $1, and appearances by Shell race car drivers and Revolution players. I suspect, this being the first J.A. card, at least for the Boston area, it will sell fast. People interested in this issue should call the J.A. office in Boston on - 617-367-5850.

From: Tom Hutchinson

Express Cards

Participating Express stores are giving away a 5 minute phone card from MCI picturing a girl posing in some of their jean clothing. It's a promotion for Express Bleus (that is the correct spelling by the way). All you have to do is go in and try on a pair of these jeans (sorry, women only!!)

From: Dean LaRocca

K-Mart Giveaway

Available at K-Mart - a Goldpoint Ball point pen with a free 5 minute phonecard from Sprint. The Pens come in red, green, black, and cost about $9. The phonecard is a aqua color with Goldpoint written across the top in gold. A picture of the pen runs across the front of the card. At the bottom left corner is Sprint in white letters. A really nice looking card!! It comes on a cardboard holder about 10 x 3 in. long. (The card is plastic)

From: Theresa McCandless

Citgo Promotion

I filled-up at Citgo today and noticed a new phonecard promotion. They'll give you a free 5-minute Citgo Racing phonecard when you purchase 8 gallons of Super Premium gasoline. The card I received pictures a race car driver (unknown to me) wearing his helmet. It's a plastic card and the phone time is provided by MCI.

From: Anthony Janakas

Until Next Week,

Alan

Distribution

Phonecards On-Line is written and distributed by Alan Cohen. It is a weekly newsletter devoted to phonecards - Current news, viewpoints, and reviews of new issues. It is distributed free of charge, and available two ways.

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