Stream Global Services, Inc. Announces Close of Stock-for-Stock Transaction With eTelecare Global Solutions and Close of Financing Transactions of Approximately US$300 Million

BOSTON, October 1 /PRNewswire/ --
- Creates a Global BPO Services Company Approaching US$1 Billion in
Projected Revenue in 2010 and Approximately 30,000 Combined Employees

Stream Global Services, Inc., (NYSE Amex: OOO), a premium business
process outsourcing (BPO) provider specializing in customer relationship
management services for the Fortune 1000, today announced the closing of its
previously announced stock-for-stock exchange with EGS Corp., the parent
company of eTelecare Global Solutions, Inc.

The combined company, which will retain the Stream Global Services name,
will have approximately 30,000 employees located throughout 50 service
centers in North America, Europe, the Philippines, Latin America, India and
Africa. The combination creates a global BPO company with a diversified
Fortune 1000 customer base, an experienced executive team, a comprehensive
BPO services portfolio, and complementary businesses with technical and
product leadership across a wide range of industries, including the
technology, retail, entertainment, media telecommunications and financial
service sectors. The combined company will draw upon the broad range of
service strengths of each business's integrated service offerings, ranging
from sales and revenue generation to customer care and technical support, as
well as warranty services. It is estimated that the combined enterprise will
have annualized revenues approaching US$1 billion in 2010.

Stream has completed a previously announced private placement of US$200
million aggregate principal amount of 11.25 percent senior secured notes due
2014 (the "Notes"). The Notes were issued by the company at an initial
offering price of 95.454 percent of the principal amount. We intend to use
the net proceeds of the Notes Offering to refinance existing indebtedness of
Stream and eTelecare. The Notes offering was led by Goldman Sachs & Co., and
joint book runners were Wells Fargo Securities, Morgan Stanley and RBC
Capital Markets. Stream also completed a Revolving Credit Facility secured by
certain assets of the company and certain of its foreign subsidiaries
totaling US$100 million availability, subject to borrowing base and other
restrictions (the "Credit Facility"). The Credit Facility was led by Wells
Fargo Foothill, LLC; as the agent and a lender, and the other lenders include
Goldman Sachs Lending Partners LLC, Morgan Stanley Senior Funding Inc., and
Royal Bank of Canada.

Scott Murray will continue to be the Chairman and Chief Executive Officer
of the combined company. Other members of the executive team will include:
Robert Dechant as EVP Global Sales & Marketing; Robert Lyons as EVP Chief
Technology & Information Officer; Sheila Flaherty as EVP Chief Legal Officer;
Jeff Bishop as EVP Operations of Americas; Harry Jackson as EVP Operations of
EMEA; Gilbert Santa Maria as SVP of Corporate Business Development; Andrew
Suchoff as SVP of Global Human Resources; and Robert Aldrich as SVP of Global
Finance.

"The completion of the combination of Stream and eTelecare today brings
together two very strong franchises to deliver a diversified set of BPO and
CRM services for our clients on a truly global basis. Stream is now one of
the top service providers in the world offering customer lifecycle support
services such as: sales, customer care, warranty and technical support to
many of the leading companies in the world. The new capital we have raised,
together with the deep support we have from our financial sponsors Ares
Management LLC, Providence Equity Partners LLC and Ayala Corporation, will
allow us to make long-term investments in new services and technology, as
well as expand our geographic footprint into additional areas including
China, South America and Japan," said CEO Scott Murray. Murray went on to
say, "We have assembled one of the most experienced and proven management
teams in the BPO industry, and we believe that Stream will continue to be a
terrific place for young people to build and grow their careers with us over
the next decade as we expand our business model to suit the needs of our
clients."

Contact Information:
Sally Comollo
Director of Marketing Communications
sally.comollo@stream.com
+1-781-304-1847
About Stream Global Services:
Stream Global Services is a premium business process outsource (BPO)
provider specializing in customer relationship management services including
sales, customer care and technical support for Fortune 1000 companies. Stream
is a trusted advisor to some of the world's leading technology, computing,
telecommunications, retail, entertainment/media, and financial services
companies. Our service programs are delivered through a set of standardized
best practices by a highly skilled workforce of approximately 30,000
employees based out of 50 solution centers in 22 countries supporting 34
languages. Stream continues to expand its global presence and service
offerings to increase revenue, improve operational efficiencies and drive
brand loyalty. To learn more about the company and its complete service
offering, please visit www.stream.com.

Safe Harbor. This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, including forward-looking statements regarding our
business expectations and objectives, including without limitation, our
projected revenue in 2010. These statements are based upon the current
expectations and beliefs of management and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. We cannot guarantee that we will
achieve the plans, intentions or expectations disclosed in the
forward-looking statements. Important factors that may affect future results
and outcomes include, but are not limited to, our inability to become or
remain profitable, our customer concentration, our dependence on a few
industries and the level of demand for outsourced business processes in these
industries, our inability to realize the anticipated benefits of our
combination with eTelecare, our substantial amount of debt, which could
impact our ability to obtain future financing or pursue our growth strategy,
negative public reaction to outsourcing and recently proposed legislation,
fluctuations in foreign currency exchange rates, payment on our indebtedness
will require a significant amount of cash, our ability to maintain and win
additional client business, continue to maintain our operating performance
and margin expansion, continue to have sufficient capital to grow and
maintain our business, retain our management team and effectively operate a
global franchise across multiple jurisdictions, delays or interruptions of
service due to system failures, natural disasters, fire, security breaches
and other similar events, an inability to predict future tax liabilities,
political and economic instability in countries where we do business, risks
associated with our international operations, increases in labor-related
rates, our inability to maintain sufficient capacity utilization in our
service centers, our long selling cycle, the potential for unauthorized
disclosure of personal information, an outbreak of a pandemic, our dependence
on third party technology, government regulation may increase our costs and
other risks and important factors detailed in our filings with the SEC. We
undertake no obligation to update any of these forward-looking statements to
reflect events or circumstances after the date of this release or to reflect
actual outcomes.

Sally Comollo, Director of Marketing Communications of Stream Global Services, Inc., +1-781-304-1847, sally.comollo@stream.com

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