World Access Noteholders Declare Default

Deutsche Telekom Disconnects TelDaFax Circuits

Pending World Access Funding Commitment



Apr 05, 2001, 01:00 ET from World Access, Inc.

    ATLANTA, April 5 /PRNewswire/ -- World Access, Inc. (Nasdaq:   WAXS)
 announced today that, as anticipated, it has received a notice of default from
 the holders (the "Noteholders") of its 13.25% Senior Notes due 2008 (the
 "Notes") as a result of its failure to re-initiate a tender offer for
 approximately $161.4 million of outstanding Notes.  As previously announced,
 the Company has engaged UBS Warburg to assist in restructuring of the Notes
 and other obligations, following the Company's conclusion that it has
 insufficient financial resources to both fund the tender obligation and meet
 operating cash requirements.
     In addition, World Access has been notified that the Noteholders have
 filed an involuntary bankruptcy petition in Delaware.  The Company is
 evaluating the petition with its advisors and intends to meet with the
 petitioners to determine if an agreement with respect to a consensual
 restructuring can be reached.
     World Access also announced today that its Board of Directors has
 evaluated the funding requirements for its subsidiary, TelDaFax AG, and has
 approved a plan to meet the obligations of TelDaFax to Deutsche Telekom AG
 ("DT"), its largest vendor, in accordance with previously discussed terms.
 The funding plan is contingent on the approval of the ad hoc committee of the
 Noteholders, which is expected to meet this morning to evaluate the proposal.
 World Access informed DT this morning of the Board's approval of funding.
 However, TelDaFax circuits were disconnected beginning at 11:00 a.m. Central
 European Time.  World Access will have further discussions with DT today based
 on the outcome of the Noteholder meeting and hopes to have all TelDaFax
 circuits restored.
 
     About World Access
     World Access is focused on being a leading provider of bundled voice, data
 and Internet services to small- to medium-sized business customers located
 throughout Europe.  In order to accelerate its progress toward a leadership
 position in Europe, World Access is acting as a consolidator for the highly
 fragmented retail telecom services market, with the objective of amassing a
 substantial and fully integrated business customer base.  To date, the Company
 has acquired several strategic assets, including Facilicom International,
 which operates a Pan-European long distance network and carries traffic for
 carrier customers, NETnet, with retail sales operations in 9 European
 countries, and WorldxChange, with retail accounts in the U.S. and Europe.
 World Access, branding as NETnet, offers services throughout Europe, including
 long distance, internet access and mobile services.  The Company provides end-
 to-end international communication services over an advanced asynchronous
 transfer mode internal network that includes gateway and tandem switches, an
 extensive fiber network encompassing tens of millions of circuit miles and
 satellite facilities.  For additional information regarding World Access,
 please refer to the Company's web site at www.waxs.com .
 
     This press release may contain financial projections or other forward-
 looking statements made pursuant to the safe harbor provisions of the
 Securities Reform Act of 1995.  Such statements involve risks and
 uncertainties which may cause actual results to differ materially.  These
 risks include: inability to obtain adequate financing or financing on terms
 acceptable or favorable to the Company; inability to restructure existing debt
 obligations; potential inability to identify, complete and integrate
 acquisitions; difficulties in expanding into new business activities; delays
 in new service offerings; the potential termination of certain service
 agreements or the inability to enter into additional service agreements; and
 other risks described in the Company's SEC filings, including the Company's
 Annual Report on Form 10-K for the year ended December 31, 1999, as amended,
 the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31,
 2000, and June 30, 2000, as amended, the Company's Quarterly Report on
 Form 10-Q for the quarter ended September 30, 2000, and the Company's
 Registration Statements on Forms S-3 (No. 333-79097) and S-4 (No. 333-37750
 and 333-44864), and the Company's Report on Form 8-K dated February 21, 2001,
 all of which risks are incorporated by reference into this press release.
 
     Contact:  Investor Relations of World Access, 404-231-2025
 
 

SOURCE World Access, Inc.
    ATLANTA, April 5 /PRNewswire/ -- World Access, Inc. (Nasdaq:   WAXS)
 announced today that, as anticipated, it has received a notice of default from
 the holders (the "Noteholders") of its 13.25% Senior Notes due 2008 (the
 "Notes") as a result of its failure to re-initiate a tender offer for
 approximately $161.4 million of outstanding Notes.  As previously announced,
 the Company has engaged UBS Warburg to assist in restructuring of the Notes
 and other obligations, following the Company's conclusion that it has
 insufficient financial resources to both fund the tender obligation and meet
 operating cash requirements.
     In addition, World Access has been notified that the Noteholders have
 filed an involuntary bankruptcy petition in Delaware.  The Company is
 evaluating the petition with its advisors and intends to meet with the
 petitioners to determine if an agreement with respect to a consensual
 restructuring can be reached.
     World Access also announced today that its Board of Directors has
 evaluated the funding requirements for its subsidiary, TelDaFax AG, and has
 approved a plan to meet the obligations of TelDaFax to Deutsche Telekom AG
 ("DT"), its largest vendor, in accordance with previously discussed terms.
 The funding plan is contingent on the approval of the ad hoc committee of the
 Noteholders, which is expected to meet this morning to evaluate the proposal.
 World Access informed DT this morning of the Board's approval of funding.
 However, TelDaFax circuits were disconnected beginning at 11:00 a.m. Central
 European Time.  World Access will have further discussions with DT today based
 on the outcome of the Noteholder meeting and hopes to have all TelDaFax
 circuits restored.
 
     About World Access
     World Access is focused on being a leading provider of bundled voice, data
 and Internet services to small- to medium-sized business customers located
 throughout Europe.  In order to accelerate its progress toward a leadership
 position in Europe, World Access is acting as a consolidator for the highly
 fragmented retail telecom services market, with the objective of amassing a
 substantial and fully integrated business customer base.  To date, the Company
 has acquired several strategic assets, including Facilicom International,
 which operates a Pan-European long distance network and carries traffic for
 carrier customers, NETnet, with retail sales operations in 9 European
 countries, and WorldxChange, with retail accounts in the U.S. and Europe.
 World Access, branding as NETnet, offers services throughout Europe, including
 long distance, internet access and mobile services.  The Company provides end-
 to-end international communication services over an advanced asynchronous
 transfer mode internal network that includes gateway and tandem switches, an
 extensive fiber network encompassing tens of millions of circuit miles and
 satellite facilities.  For additional information regarding World Access,
 please refer to the Company's web site at www.waxs.com .
 
     This press release may contain financial projections or other forward-
 looking statements made pursuant to the safe harbor provisions of the
 Securities Reform Act of 1995.  Such statements involve risks and
 uncertainties which may cause actual results to differ materially.  These
 risks include: inability to obtain adequate financing or financing on terms
 acceptable or favorable to the Company; inability to restructure existing debt
 obligations; potential inability to identify, complete and integrate
 acquisitions; difficulties in expanding into new business activities; delays
 in new service offerings; the potential termination of certain service
 agreements or the inability to enter into additional service agreements; and
 other risks described in the Company's SEC filings, including the Company's
 Annual Report on Form 10-K for the year ended December 31, 1999, as amended,
 the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31,
 2000, and June 30, 2000, as amended, the Company's Quarterly Report on
 Form 10-Q for the quarter ended September 30, 2000, and the Company's
 Registration Statements on Forms S-3 (No. 333-79097) and S-4 (No. 333-37750
 and 333-44864), and the Company's Report on Form 8-K dated February 21, 2001,
 all of which risks are incorporated by reference into this press release.
 
     Contact:  Investor Relations of World Access, 404-231-2025
 
 SOURCE  World Access, Inc.

RELATED LINKS

http://www.waxs.com