Telus to Acquire ADCOM - Largest VideoConferencing Company i

[Barry]

TELUS announced it has signed a definitive agreement to acquire ADCOM, Inc., the largest videoconferencing company in Canada. The transaction value is less than $15 million. Through the acquisition, TELUS gains 84 ADCOM employees, a new customer base, as well as the company's multi-site operations and state-of-the-art equipment. ADCOM recorded $24.7 million revenue in 2004. Headquartered in Toronto, ADCOM has offices in Calgary, Edmonton, Ottawa, Montreal and Halifax.

Many organizations are seeking greater productivity and reduced costs through the use of Internet Protocol (IP) technology and transforming enterprise communications to a real time environment. The enhanced offering enabled by uniting TELUS and ADCOM will transform video, web, audio and streaming technologies into an easy to use essential business communication tool. The combined companies will deliver solutions including collaboration infrastructure devices, software, network, and managed services.

TELUS was the first North American company to transform its circuit-based network to an IP-based network, and has been a leader in introducing and applying IP technologies and applications for business. Building on the advantages of its IP-based Next Generation Network, the addition of leading edge videoconferencing capabilities expands the potential of IP products and services available to business customers looking to gain a competitive advantage.

The transaction is structured as a share purchase, consideration being on an all cash basis. Ernst & Young Orenda Corporate Finance Inc. acted as the exclusive financial advisor to ADCOM.

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