eGlobe To Merge with Trans Global Communications

Posted: 12/1999

eGlobe To Merge with Trans Global Communications

eGlobe Inc., Washington, and Trans Global Communications Inc., New York, have entered
into a merger agreement. The Letter of Intent (LOI) the two companies signed values Trans
Global equity at about $80 million, which will be paid to eGlobe stock at closing, at
which time eGlobe also will assume about $10 million of Trans Global’s outstanding debt.

After the merger, three Trans Global representatives will join the eGlobe board of
directors, and all the senior members of the Trans Global management team will occupy
senior positions in the combined company. Christopher Vizas, chairman and CEO of eGlobe,
will continue as CEO of the company, but will become co-chairman of the board with Arnold
Gumowitz.

In other eGlobe news, the company also launched the Open Internet Communications
Clearinghouse, which instantly enables Internet and circuit-based telephone companies to
terminate calls anywhere in the world and settle payments among other eGlobe clearinghouse
members. The clearinghouse was launched in cooperation with TransNexus LLC, Atlanta.