Smart City Networks to Acquire Vista-United Telecommunications

Smart City Networks to Acquire Regulated Assets of Vista-United Telecommunications from Disney World and Sprint

Smart City Networks has announced an agreement to acquire the regulated and certain non-regulated assets of Vista-United Telecommunications, a partnership of Disney Corporation and Sprint.

Vista-United is the telephone company that serves The Walt Disney World Resort and several neighboring communities, including Celebration and Little Lake Bryan.

Smart City will acquire telephone switches, fiber, buildings, conduits, vehicles, pay telephones and other equipment that are located throughout the 30,000 acres of The Walt Disney World Resort. In addition, approximately 100 employees will be transferred to Smart City's newly formed regulated subsidiary.

Smart City and Disney also reached an agreement whereby Smart City will provide regulated telephone services at The Walt Disney World Resort under a long-term agreement.

The combined organization will be able to provide the hospitality industry with an integrated solution that meets the telecommunications needs of travelers and guests. "The hospitality sector of the telecommunications industry is growing rapidly as travelers are demanding greater connectivity,'' said Martin Rubin, CEO of Smart City Networks. "We can now provide a larger array of services to meet a larger portion of the market.''

When Smart City moved to Las Vegas in 1998, its annual revenues were about $6.5 million. With this acquisition, annual revenues will double to $55 million. The deal, which Rubin said could be worth more than $175 million to Smart City in the next five years, is expected to close in January 2001.

Smart City was chosen from a field of potential suitors that included some of the telecommunication industry's giants. "Our company is very focused on creating a pleasant experience for our customers,'' said Paul Ashley, president of Smart City Networks. "Our ability to service the customer contributed greatly to Smart City being selected.''

Smart City Networks is the nation's leading supplier of telecommunications services to convention centers, hotels, stadiums and theme parks. Ten of the country's largest cities, including Las Vegas, Dallas, Houston and San Diego, have long-term, exclusive contracts with Smart City for telecommunications services at their respective convention centers.

Vista-United Telecommunications has been the local telephone company serving The Walt Disney World Resort since 1971. The company is a leader in innovative solutions for the number one theme park in the world.

-- Posted October 30, 2000

Source: Company Press Release