Arc Executes Definitive Merger Agreement

10th Dec 2003

media and technology communications firm, announced today that it has
executed a definitive agreement to merge with privately held RoomLinX,
Inc., a leading provider of wireless fidelity (“Wi-Fi”) high-speed
Internet network solutions to the hospitality industry. The transaction
will involve a corporate name change, and a change in the overall
strategic direction of the firm. Under the current capitalization
structure, following the merger, Arc shares will be held approximately 3/4
by RoomLinX shareholders and 1/4 by Arc shareholders. The closing of the
merger is subject to a number of conditions, including approval by the
shareholders of Arc and RoomLinX. It is anticipated that the merger will
close in the first quarter of 2004.

RoomLinX`s fully supported networks allow hotel, conference facility, and
other venue operators, to provide their guests with fast, reliable, and
most importantly, easy to use Wi-Fi broadband access. RoomLinX currently
provides services to hotels, convention centers, corporate apartments and
special event participants throughout the US, Canada and UK. RoomLinX
operates some of the largest Wi-Fi visitor based networks (VBN) in the
Hospitality industry, serving such clients as Westin, Sheraton, Ian
Schrager, Dolce International and Hampton Inn hotel chains. The firm has
secured Wi-Fi service and support agreements for over 15,000 hotel rooms,
and expects to generate in excess of $2,000,000 in revenue in 2003, up
from $618,501 in 2002 (Over 223% Growth).
RoomLinX CEO Robert Lunde stated, “We are very optimistic about the future
of RoomLinX as a publicly traded company. According to Pyramid Research,
our industry is projected to grow at a compound annual rate in excess of
84% over the next five years. We believe that by working closely with Mr.
Peter A. Bordes, Arc`s current Chairman, and taking advantage of our
status as a Public Company, that we will be able to attract the strategic
alliances and necessary resources to generate explosive growth and value
for our shareholders.”
Arc Chairman Peter Bordes stated, “Our Definitive Merger Agreement with
RoomLinX represents the final step of a new beginning for Arc which began
when I became a shareholder in June 2002. We are simultaneously evaluating
the sale of Arc`s current business, which reported sales of $224,000 and
an operating profit of $37,000 for the quarter ending September 30, 2003.
We anticipate making a final determination by the close of the RoomLinX
transaction. We look forward to entering the second quarter of 2004 as
RoomLinX, Inc., a leader in the revolutionary industry of high-speed
wireless Internet connectivity.”
Arc Communications, Inc. offers a full range of high-tech communications
products and services for clients. Information on Arc is available on its
web site

The information contained in this press release, including any “forward-
looking statements” within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934
contained herein, should be reviewed in conjunction with the Company`s
Annual Report on Form 10-K and other publicly available information
regarding the Company, copies of which are available from the Company upon
request. Such publicly available information sets forth many risks and
uncertainties related to the Company`s business and such statements,
including risks and uncertainties related to that are unpredictable and
outside of the influence and/or control of the Company.


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