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U.S. Starcom, Inc. (OTC: USTA)


U.S. Starcom, Inc. (OTC: USTA)

:: Business Overview ::

US Starcom was formed to provide value-added products to the Hispanic and Urban marketplace that primarily fall under the guidelines of MINUTES, MONEY and MUSIC.

:: Financial Hightlights ::

Turned profitable in September, cash flow positive in October

Revenues

  • Revenues climbing exponentially, with 3rd quarter revenues estimated to be $5 million, 1000% ahead of total 2005 revenues
  • Fourth quarter revenues estimated to be in the range of $6-8 million, more than 50x last years fourth quarter revenues
  • 2007 revenues estimated to be in the range of $20-40 million
  • 2008 revenues estimated to be in the range of $40-80 million

Profits

  • Fourth quarter profits estimated to be in the range of $.01-.02 per share

:: Contact Information ::

U.S. Starcom, Inc.
John DiDomenico - President
101 Fayette Street
Perth Amboy, NJ 08861
732-293-0048 Office
732-293-0787 Fax
http://www.usstarcom.com

:: Investor Contact ::

Jack Lennon - Investor Contact
508-362-4420
jjlennon@comcast.net

State or other jurisdiction of incorporation or organization: Nevada

Transfer Agent: OTR, Inc., Portland, OR 97205

:: Operations ::

Specialty Hispanic Retailer

  • USTA provides prepaid services for Hispanic customers, including money wiring, tax preparation, and telecom services to Hispanic and other urban customers.
  • USTA plans on growing the national chain of retail outlets called "Bell Latino," providing provides money wiring and telecom services to the Hispanic marketplace.

Bell Latino

  • New acquisition, Bell Latino, has the potential to be a national brand with hundreds of outlets
  • Bell Latino provides prepaid services for Hispanic customers, money wiring, tax preparation, and telecom services to Hispanic and other urban customers.
  • Customers can come in to wire money home, and then call home to inform loved ones the money is on the way.
  • Computers are also available to email instead of calling.
  • Retail space is available for selling higher margin products such as pre-paid phone cards, cell-phones, debit cards, music and other products.
  • Offices in the back will be used for tax preparation and related services.
  • Tax preparation for Hispanics is estimated to be a huge growth area in the decade ahead.

Bell Latino Growth Plan

  • USTA plans to triple the number of outlets over the next 12 months, and as well add mobile units that will service major Hispanic events.
  • In addition to adding outlets, the company plans on expanding the profitability of each outlet by expanding their retail component, while adding complementary services such as tax preparation, mortgage origination and insurance products.
  • The company believes that this chain could grow exponentially over the next decade, with annual revenues in the hundreds of millions. The company will continually create or distribute profitable products through this chain.

Three Other Independent Operation Divisions
In addition to Bell Latino, the company has 3 other independent operating divisions.

  • Sky Distribution creates and distributes pre-paid phone cards nationally through a network of retail outlets and distributors.
  • US Starcom Technologies, dba Infinite Technology Group, sells large telecom and computer systems to banks and health institutions, with additional expertise in creating debit-card networks, and
  • US Starcom, the parent, creates innovative products to distribute through the national network of thousands of retail outlets and distributors.

:: New Products & Services::

  • A telecom program with a major provider began in the 3rd quarter
  • USTA’s announced contracts with Universal Music and the Catholic Church of Mexico are scheduled for launch this quarter. USTA will be packaging pre-paid phone cards with CD’s with recordings from popular Hispanic recording artists for Universal
  • The "Lady of Guadaloupe" project for the Catholic Church is even more revolutionary in using technology to bring people closer to their faith. Pre-paid cards will give devout Hispanics the opportunity to buy phone minutes, blessings, or send prayer messages to the Basillica of Our Lady of Guadaloupe in Mexico for nominal cost, with a portion of the proceeds going directly to the Church. The contract covers telecom, music, and other areas for the United States. Telefonos de Mexico has the contract for Mexico.
  • USTA is working on other revolutionary ideas as well, in areas such as electronic couponing, discounted health care and the downloading of music and images.

:: Recent Events ::

  • U.S. Starcom Closes Merger With Bell Latino, October 30, 2006
    "Not only will it add over $3 million to our 3rd quarter revenues, it should add significantly to 2007 revenues," said John DiDomenico, President of U.S. Starcom.
  • "We plan on tripling the number of locations over the next 12-18 months, funded by internal cash flow. We will be able to remit money for our Hispanic customers, handle their telecom and prepaid needs, while also taking care of their tax preparation needs," he added
  • "We are very excited about the synergies between the two companies," said Michael Burns, President of Bell Latino. "Our goal is to double our net margins over the next 12 months by adding many of US Starcom's products to our Bell Latino locations. We feel this business has the potential to grow to over $100 million annually over the next several years."

:: Stock Related ::

  • USTA is considering a stock buyback for up to 4 million shares. Of the 10 million shares in the public float, half is estimated to be tightly held.
  • Intends to apply for OTC:BB listing in the next 90 days, based on an audit beginning in November, 2006
  • Potential spin off of one subsidiary, ITG, is being considered for the 1st quarter.

:: Management ::

Chairman: Dr Joseph Billotti
Dr. Joseph D. Billotti has been involved in Management for over 25 years. Besides running a successful medical practice, he founded a statewide physician HMO, where he was Chairman and Chief Medical Officer. When the entity had over 100,000 members, he negotiated the sale to Horizon Blue Cross Blue Shield of New Jersey. Dr Billotti currently sits on the Board of Blue Cross, which now has more than 3 million members, and is an advisor to numerous other organizations.

President/CEO: John DiDomenico
Mr. DiDomenico was past President of Neptune Marketing Technologies, which at one point was the biggest distributor for MCI Communications. He is still known in the telecom and Latino communities and currently sits on the Board of Directors of the Guardian Angels. He has been involved with numerous other entities, such as US Online, Nuestra Telefonica, and Power Controls Corporation, and he has promoted various Latino artists, as well as artists such as David Bowie and Johnny Winter.

Vice President/COO Telecom: Joseph Betro
Joseph Betro brings over 20 years of telecom experience to US Starcom. Mr. Betro started his career with Nynex, leaving after 10 years as Field Operations Manager to become VP of Operations for Voice Communications, Inc. He left after several years to form Mundetel
Communications Inc, where he assumed the role as President. Mundetel is a multi-million dollar provider of telecom services to the Hispanic and urban consumer.

President of Bell Latino: Mike Burns
Nineteen years in telecommunications, first seven years with MCI in Sales Management. Three years as Vice President, North American Sales for ViTel International, an international communications service provider. Served three years as Vice President of Sales for PTI Communications, at the time the largest prepaid phone card company in the country. In 2000, co-founded Mundetel Communications, an international phone carrier solely catering to the Hispanic marketplace.

Vice President: Jose Nino

Mr. Nino is also President of El Nino Group of Washington, D.C. He was the Hispanic Business Advisor under President George H.W. Bush, as well as past president of the US Hispanic Chamber of Commerce. Mr. Nino was Co-Chairman of the Bush-Cheney Election Committee, and has been a past advisor to the Small Business Advisory Board at the Federal Reserve in Chicago. He currently sits on the Boards of many organizations, including the Boy Scouts of America, The Guardian Angels, The Hispanic Counsel of International Relations and the US Mexico Chamber of Commerce.

Treasure and Board of Director member: John Lennon
President of Chamberlain Capital Partners, Masters in Finance and Engineering from Boston University. Almost 30 years’ experience in Finance and Corporate turnaround with Smith Barney, Janney-Montgomery Scott, Dupont, Polaroid and a variety of other clients.

IPOdesktop (ID) SAFE HARBOR STATEMENT: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. ID provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. ID has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by ID to be reliable, but ID provides no assurance, and none is given, as to the accuracy and completeness of this information.

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