GOAMERICA\u00ae ACQUIRES VERIZON TRS DIVISION AND MERGES WITH HANDS ON
\nSERVICES TO BECOME A LEADING PROVIDER OF INTEGRATED COMMUNICATIONS
\nSERVICES <\/p>\n
Clearlake Capital Investment and Sponsorship Enables Company
\nTransformation<\/p>\n
HACKENSACK, N.J., January 10, 2008 \u0013 GoAmerica, Inc. (NASDAQ: GOAM),
\na provider of communications services for people who are deaf,
\nhard-of-hearing, or speech-disabled, today announced that it has
\nclosed the transactions with Clearlake Capital Group (\u001cClearlake
\nCapital\u001d), Verizon, and Hands On as described to its shareholders at
\nits annual meeting on December 13, 2007.<\/p>\n
Transaction and Financial Summary <\/p>\n
The Company raised $125 million of equity and debt financing; $15
\nmillion of which is in the form of an unfunded credit facility. <\/p>\n
The Company closed an asset purchase of the Verizon
\nTelecommunications Relay Services (\u001cTRS\u001d) division, a leading
\nprovider of relay services. <\/p>\n
The Company completed a merger with Hands On Video Relay Services
\n(“Hands On”), a California-based provider of video relay and
\ninterpreting services. <\/p>\n
On a trailing, twelve-month pro-forma basis ending December 31, 2007,
\nthe combination of GoAmerica, the Verizon TRS division, and Hands On
\nwould have generated approximately $110 million in revenue. <\/p>\n
Compared with operating GoAmerica, Hands On, and the TRS division
\nseparately, GoAmerica expects to realize material cost savings and
\nsynergies over time from the combination of GoAmerica, Verizon TRS,
\nand Hands On. <\/p>\n
\u001cGoAmerica emerges from this series of transactions as a robust
\ncompany with operating scale, cash flow, a deep pipeline of
\ninnovative products, leading strategic and financial partners, and a
\nstrong balance sheet to enable further growth opportunities,\u001d said
\nDan Luis, CEO of GoAmerica. \u001cWith the transactions now closed, we are
\npositioned to hit the ground running, with an emphasis on profitable
\ngrowth and delivering new product innovations to our customers.\u001d <\/p>\n
\u001cWe are very pleased to sponsor the three-way combination of
\nGoAmerica, Verizon\u0019s TRS division, and Hands On Services,\u001d said
\nBehdad Eghbali, a partner at Clearlake Capital. \u001cThe resulting
\ncompany is uniquely positioned and capitalized for growth and
\ninnovation, further establishing itself as a market leader in
\nintegrated communication services.\u001d <\/p>\n
\u001cAs a founder of Hands On, and now a shareholder of GoAmerica, I am
\nexcited about the financial strength of the combined company,\u001d said
\nRonald Obray, founder and CEO of Hands On. \u001cIn addition, while the
\nfinancial aspects are attractive, we\u0019ve always taken seriously our
\ncommitment to quality, innovation, and employment opportunities, as
\nwell as breaking down communications barriers for the deaf and hard
\nof hearing \u0013 this is especially true because at Hands On, many of our
\ncustomers are also our friends. Now that the merger is closed, I look
\nforward to seeing this mission carried out in all of the Company’s
\nstrategic initiatives.\u001d <\/p>\n
Integrated Products and Services Offered <\/p>\n
The combined Company has five lines of business: <\/p>\n
Internet Text Relay Services \u0013 Internet text relay services enable
\ndeaf or hard of hearing callers to use a Web-connected computer or
\nwireless handheld device to place calls, which are connected to a
\nrelay operator. The relay operator calls the voice number and then
\nverbally speaks the text message typed by the deaf caller to the
\nhearing recipient, and types the hearing party\u0019s responses back to
\nthe deaf party. The Company provides versions of this service under
\nthe IP-Relay business acquired from Verizon and the existing i711
\nbusiness from GoAmerica. <\/p>\n
Video Relay Services (\u001cVRS\u001d) \u0013 Using VRS, a deaf caller begins a call
\nby communicating directly with a sign language interpreter over a live
\nvideo connection, either on a webcam-equipped PC or a set-top
\nvideophone; the interpreter places the call on the deaf person’s
\nbehalf, and translates the caller’s sign language into audible speech
\nfor the hearing person, and back into sign language for the deaf
\ncaller. The Company provides versions of this service primarily under
\nthe Hands On Video Relay Services (\u001cHOVRS\u001d) and i711 brands. In
\naddition, the Company offers a white label solution by providing the
\ninfrastructure and interpreting services for video relay services
\noffered by Sprint and AT&T. <\/p>\n
Community Interpreting Services \u0013 Certified sign language
\ninterpreters provide interpreting services in situations where relay
\nservices may not be available or ideal, such as a doctor appointment
\nor in-person business meeting. <\/p>\n
\u00b7 Wireless Devices and Services \u0013 The Company provides wireless
\ndevices, such as the T-Mobile Sidekick, or other devices that are
\nhearing-aid compatible, and value-added wireless services customized
\nfor deaf or hard of hearing consumers.<\/p>\n
\u00b7 State Telecommunications Relay Services \u0013 Traditional relay service
\nenables a person with a hearing or speech disability to use a
\ntext-telephone device (historically referred to as a telephone
\ntypewriter, or a TTY device), to initiate calls to, and receive calls
\nfrom, hearing persons. The Company has contracts to provide these
\nservices in California, Tennessee, and the District of Columbia. <\/p>\n
\u001cWe have further bolstered the strengths of our team and increased
\nthe tools at our disposal which will allow us to continue to develop
\nleading communication products and services for our customers,\u001d said
\nEd Routhier, President of Hands On. \u001cWhile product innovation is a
\ntop priority, we remain committed first to creating a highly
\nattractive environment for our employees, making us not only the
\nprovider-of-choice, but also the employer-of-choice.\u001d <\/p>\n
Capital Structure and Strong Post-Closing Balance Sheet <\/p>\n
In conjunction with the transactions, the Company has issued an
\naggregate of 7,736,944 shares of preferred stock (including 290,135
\nshares issued on August 1, 2007) to an investor group led by
\nClearlake Capital and 6,700,000 shares of common stock to the
\nstockholders of Hands On. <\/p>\n
The Company has also successfully completed debt financing of $40
\nmillion in first lien debt and $30 million in second lien debt. To
\ncreate additional flexibility to pursue strategic opportunities, the
\nCompany has also secured a $15 million unfunded credit revolver which
\ncreates additional liquidity for the Company as needed. Clearlake
\nCapital Group, LLC provided the second lien debt and assisted the
\nCompany in arranging the first lien debt and revolver. <\/p>\n
Board Composition <\/p>\n
GoAmerica\u0019s Board of Directors now consists of eight members:
\nincluding, Aaron Dobrinsky (Chairman), Dan Luis (CEO), Edmond
\nRouthier (President of Hands On), Behdad Eghbali and Steven Chang of
\nClearlake Capital Group, LLC, Bill McDonagh, Steve Eskenazi, and King
\nLee. Together, the Board will identify and select an additional
\nindependent director at which time King Lee will resign. <\/p>\n
Advisors <\/p>\n
RBC Daniels provided advisory services to GoAmerica related to the
\nVerizon TRS transaction. JMP Securities acted as exclusive financial
\nadvisors to Hands On in this transaction. <\/p>\n
About Telecommunications Relay Services <\/p>\n
Telecommunications Relay Services (\u001cTRS\u001d), created by Title IV of the
\nAmericans with Disabilities Act of 1990 (\u001cADA\u001d), enable an individual
\nwith a hearing or speech disability to communicate by telephone or
\nother device through the telephone system with a person without such
\na disability through a communications assistant (\u001cCA\u001d) or video
\ninterpreter (“VI”) at a relay center. <\/p>\n
TRS providers, such as GoAmerica, receive reimbursement either
\ndirectly from state contracts, or from a pool of funds, collected
\nfrom telephone carriers by the Federal Communications Commission
\n(\u001cFCC\u001d) and administered by the National Exchange Carriers
\nAssociation (\u001cNECA\u001d), based on the number of conversation minutes
\nhandled by each provider. <\/p>\n
About GoAmerica <\/p>\n
As a result of its acquisitions, GoAmerica is the nation’s largest
\nand second largest provider of text relay and video relay services,
\nrespectively, and provides a wide range of communications services
\ntailored to the needs of people who are deaf, hard-of-hearing, or
\nspeech-disabled. The Company’s vision is to improve the quality of
\nlife of its customers by being their premier provider of high
\nquality, innovative communication services that break down
\ncommunications barriers. For more information on the Company or its
\nservices, visit http:\/\/www.goamerica.com or contact GoAmerica
\ndirectly at TTY 201-527-1520, voice 201-996-1717, Internet Relay by
\nvisiting http:\/\/www.i711.com, or video phone by connecting to
\nhovrs.tv. <\/p>\n
About Clearlake Capital Group <\/p>\n
Clearlake Capital Group is a private investment firm integrating
\nprivate equity, leveraged finance, and special situations in both
\nprivate and public market opportunities. Clearlake Capital seeks to
\npartner with world-class management teams to invest in businesses
\ngoing through change or expansion with patient long-term capital. The
\nfirm has a flexible mandate to invest across the capital structure in
\ncorporate divestitures, recapitalizations, restructurings, going
\nprivate buyouts and minority equity investments. Clearlake Capital’s
\nfounding principals, Steven Chang, Behdad Eghbali, and Jose
\nFeliciano, have led over 30 investments totaling more than $3 billion
\nof capital in sectors including business services, communications and
\nmedia, energy and power, healthcare, manufacturing, retail\/consumer
\nand technology. <\/p>\n
Safe Harbor <\/p>\n
The statements contained in this news release that are not based on
\nhistorical fact — including statements regarding the anticipated
\nresults of the transactions described in this press release —
\nconstitute “forward-looking statements” that are made in reliance
\nupon the safe harbor provisions of the Private Securities Litigation
\nReform Act of 1995. Forward-looking statements may be identified by
\nthe use of forward-looking terminology such as “may”, “will”,
\n“expect”, “estimate”, “anticipate”, “continue”, or similar terms,
\nvariations of such terms or the negative of those terms. Such
\nforward-looking statements involve risks and uncertainties,
\nincluding, but not limited to: (i) our limited operating history;
\n(ii) our ability to respond to the rapid technological change of the
\nwireless data industry and offer new services; (iii) our dependence
\non wireless carrier networks; (iv) our ability to respond to
\nincreased competition in the wireless data industry; (v) our ability
\nto integrate the businesses and technologies we have acquired; (vi)
\nour ability to generate revenue growth; (vii) our ability to increase
\nor maintain gross margins, profitability, liquidity and capital
\nresources; and (viii) difficulties inherent in predicting the outcome
\nof regulatory processes. Such risks and others are more fully
\ndescribed in the Risk Factors set forth in our filings with the
\nSecurities and Exchange Commission. Our actual results could differ
\nmaterially from the results expressed in, or implied by, such
\nforward-looking statements. GoAmerica is not obligated to update and
\ndoes not undertake to update any of its forward looking statements
\nmade in this press release. Each reference in this news release to
\n\u001cGoAmerica\u001d, the \u001cCompany\u001d or \u001cWe\u001d, or any variation thereof, is a
\nreference to GoAmerica, Inc. and its subsidiaries. \u001cGoAmerica\u001d, the
\n“GoAmerica” logo, “i711”, and the “i711.com” logo, and “Relay and
\nBeyond” are registered trademarks of GoAmerica. \u001ci711.com\u001d and “i711
\nWireless” are trademarks and service marks of GoAmerica. Other names
\nmay be trademarks of their respective owners.<\/p>\n
### <\/p>\n
Joe Karp <\/p>\n
Vice President, Marketing <\/p>\n
GoAmerica Communications, Inc. <\/p>\n
201-527-1518 <\/p>\n
jkarp@goamerica.com <\/p>\n
Link: http:\/\/www.goamerica.com\/news\/pr.php?action=view&article=282<\/p>\n
—<\/p>\n
BETTER IP RELAY – EVERYWHERE! i711.com makes all your relay calls better.
\nBetter web calls. Better wireless calls. Better AIM calls. Why settle for
\nordinary IP relay? Go beyond! Try http:\/\/www.i711.com for free today!<\/p>\n
NEW! Try out our Deaf Network of Texas Calendar! Go to
\nhttp:\/\/calendar.deafnetwork.com <\/p>\n
NOTE: deafnetwork.com does not endorse any of the products, vendors,
\nconsultants, or documentation referenced in this message or. Any mention of
\nvendors, products, or services is for informational purposes only.<\/p>\n
Powered by http:\/\/www.CrazyWebHosting.com<\/p>\n
If you do not want to receive any more newsletters,
\nhttp:\/\/deafnetwork.com\/list\/?p=unsubscribe&uid=23e6b0ac27edebd2b6f52f1354859234<\/p>\n
To update your preferences and to unsubscribe visit
\nhttp:\/\/deafnetwork.com\/list\/?p=preferences&uid=23e6b0ac27edebd2b6f52f1354859234
\nForward a Message to Someone
\nhttp:\/\/deafnetwork.com\/list\/?p=forward&uid=23e6b0ac27edebd2b6f52f1354859234&mid=883<\/p>\n
—
\nPowered by PHPlist, www.phplist.com —<\/p>\n","protected":false},"excerpt":{"rendered":"
GOAMERICA\u00ae ACQUIRES VERIZON TRS DIVISION AND MERGES WITH HANDS ON SERVICES TO BECOME A LEADING PROVIDER OF INTEGRATED COMMUNICATIONS SERVICES Clearlake Capital Investment and Sponsorship Enables Company Transformation HACKENSACK, N.J., January 10, 2008 \u0013 GoAmerica, Inc. (NASDAQ: GOAM), a provider…<\/p>\n