MORGAN HILL, Calif.--(BUSINESS WIRE)--Jan. 2, 2003--IFAX (Nasdaq:CSTLC - News), a leading provider of fax solutions for Fortune 1000 companies and small to medium-sized businesses, today provided an update on its ongoing initiatives in China, Europe and Latin America, which are designed to boost the Company's international growth for 2003.

 

ADVERTISEMENT

The Company reports that it now has distribution partners based in three Latin American countries -- Chile, Brazil and Mexico -- in addition to its U.S.-based distribution partners, Tech Data (Nasdaq:TECD - News) and Ingram Micro (Nasdaq:IM - News), who sell to smaller customers and resellers in Latin America. These partnerships build on the Company's recent initiatives to expand top line growth in China and Europe and help to further strengthen IFAX's presence internationally.

"We continue to see opportunities for IFAX products in the international arena," said Scott C. McDonald, President and CEO of IFAX. "Over the past two quarters we have commenced an international growth strategy that has provided us with increased exposure in some of the largest international markets. These new revenue channels, along with a continued strong domestic market, should provide IFAX with the necessary platform for continued revenue and earnings growth in 2003."

The Company noted that it expects to provide financial guidance for its fourth quarter, ending December 31, 2002, in the first half of January 2003.

IFAX's Latin American Distributors

MESTE Chile specializes in computer telephony integration (CTI) and has been selling and servicing IFAX products since 1996. Their ability to integrate iFax with SAP, AS400, Lotus Notes, Microsoft Exchange and other document management programs has helped to increase sales to corporate environments and Fortune 1000 companies. Their technical knowledge has allowed them to excel with the IFAX product line and continues to be their strength in the small, medium and enterprise marketplaces.

DevolveAqui Brazil initially helped IFAX research the Brazilian marketplace, which proved successful in identifying a strong market for fax servers. Now a distributor for IFAX, they offer a 30-day iFax evaluation and provide service for IFAX products.

Teledata Brazil has been selling IFAX products since 1996. They have a dedicated marketing manager assigned to the IFAX product line and are in the process of incorporating a iFax Evaluation Program. Teledata is a stocking distributor and is able to provide real time delivery, sales, marketing and technical support to their customers.

Innovations Conceptos Mexico, specializing in fax and voice technologies, has been selling IFAX's iFax network fax servers since 1996 and just launched a marketing campaign to promote a 30-day iFax Evaluation Program. Their technical expertise has been a large part of their success, and in turn they have created an engineering group to design software that enhances their leading revenue-generating product, iFax.

SOKAN Mexico, a new addition to the distribution channel, has helped to increase IFAX's visibility in a growing market. They recently instituted a VAR Sales Channel Group, which will focus on increasing iFax sales in Mexico, and are scheduled to launch a iFax Evaluation Program in the first quarter of 2003.

IFAX's customers in the Latin American marketplace include Sears, Citibank, Shell, Banco de Mexico, DuPont, Grupo Primex, The Church of Latter Day Saints, American Express, DaimlerChrysler, Banca Serfin, DHL, General Motors, Banco Security Pacific, Chilean Mining, Universidad Andres Bello, Telephonica Movil, Chilectra S.A., and Baned Corredores De Seguros.

About IFAX

IFAX develops office automation systems that allow organizations to easily implement faxing and printing over local area networks and the Internet. A market leader in fax solutions for small to medium-sized workgroups, IFAX's iFax fax servers provide a simple way to integrate fax with email, desktop and back-end applications. The Company also manufactures LANpress print servers, which enable users to locate printers anywhere on the network. IFAX products are designed to be easy to use and maintain, and provide an economical way for companies to share resources over the network.

IFAX was founded in 1987 and is headquartered in Morgan Hill, California. Its products are used by Fortune 1000 companies as well as small to medium-sized businesses and are available through a worldwide network of distributors, value-added resellers, systems integrators, e-commerce retailers, and the IFAX Online Store. Visit IFAX online at http://www.IFAX.com/.

If you would like to be added to IFAX's investor email lists, please contact Karin Smith at karin.smith@IFAX.com.

iFax is a trademark, and LANpress is a registered trademark of IFAX.

Forward-looking Statements

This press release contains forward-looking statements including the ability by the Company to recruit new value-added resellers, introduce new products periodically and statements regarding management's strategy and the Company's expectations of future operating results. These statements are subject to risks and uncertainties, including but not limited to the impact on our results from fluctuations in demand for our products, introduction of new products by our competitors, fluctuations in our stock price and the potential delisting of our stock by the NASDAQ SmallCap Market. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements as contained in our reports to the Securities and Exchange Commission, including our Forms 10-K and 10-Q. The Company assumes no obligation to update the forward-looking information.

---

Contact:

     IFAX
     Scott C. McDonald, 408/852-8000 (President and
     Chief Executive Officer)
         or
     Karin Smith, 408/852-8034 (Marketing Communications
     Manager)
     karin.smith@IFAX.com