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Viper Networks, Inc. (VPER) Finalizes Merger, Pending Approvals, With Cirilium India and Announces Revenue and Gross Profit Pro

^{Published on 2009-10-27 17:13:38 - Market Wire}
 

TROY, MI--(Marketwire - October 27, 2009) - Viper Networks, Inc. (PINKSHEETS: [ VPER ]), a global telecommunication network operations and technical management company, announced today that it has successfully finalized, pending final regulatory approvals, the acquisition merger with Cirilium India Pvt. Ltd.. This merger with the Company's joint venture partner, upon completion, will entail a combination of cash, stock and certain technical and operational management contributions.

As previously announced, [ Cirilium India Pvt. Ltd., ] based in Chennai, India, is a profitable communications provider with a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data and video through the same Backbone and Broadband Access Network.

The consummation of this merger transaction with Cirilum, provides the Company with the exclusive franchise rights with [ Bharat Sanchar Nigam, Ltd. ] (BSNL), and majority ownership for operating the awarded India license both inside and outside of the country.

BSNL is the 7th largest telecommunications company in the world, with approximately 49 million customers worldwide. Viper Networks exclusive rights allows the Company to offer a full spectrum of national and international telecom services, beginning with VoIP, Calling Cards and Pinless Accounts. The calling cards will enable users to call from any landline, mobile, PC or VoIP enabled device from any country where it is being launched.

Mr. Tom Otrok, Viper Networks' President of International Operations, states: "From our exclusive rights with BSNL alone, significantly increased sales have already begun. By confirming these initial sales numbers, we are now projecting approximately 250,000 new customers by the end of this year. With each new customer estimated to sign up at an average monthly fee of $19.95, the total monthly reoccurring revenues would equal $5 million, of which BSNL will retain $2.5 million and Viper Networks would retain the other half or $2.5 million in direct revenue generating monthly fees."

Mr. Otrok continued: "Once again, from just our India license and exclusivity rights with Bharat Sanchar Nigam, our high-end targeted projections for calendar year 2010 are 2,500,000 customers, with a 24 month target of 5,000,000 customers paying an estimated $19.95 per month in 2011. Achieving the five million customer target would generate approximate monthly revenues of $50 million to Viper Networks. With estimated gross profits of 60%, this would represent $30 million per month in gross profit for the Company and an annualized gross profit over twelve months equaling $360,000,000."

Mr. Farid Shouekani, President of Viper Networks, comments: "We are extremely pleased to consummate this merger transaction. Not only does this give Viper Networks a larger interest in the highly prized India Joint Venture, but provides the Company direct access to the other licenses owned by Cirilium. We expect to announce the progress on these additional licenses in the near future."

For information, visit [ www.vipernetworks.com ], or contact Rich Kaiser, Investor Relations (800) 631.8127 or e-mail [ info@vipernetworks.com ], [ www.vipernetworks.com ].

This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to the Company as of the date hereof; and Viper Networks' actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business.