SRT StarTek Inc

StarTek, Inc. (NYSE:SRT), a leading provider of business process outsourcing services, announced today that a Fortune 1000 company has signed a contract with StarTek to augment its bilingual customer care support. The client is launching the prepaid wireless phone service using a mobile virtual network operator (MVNO) business model and will utilize StarTek's unique MVNO Services to support its customer base. StarTek's customer care services will be provided bilingually in English and Spanish. Using an MVNO business model, companies that do not own their own wireless network can form partnerships with traditional wireless companies to "buy" minutes and resell them to customers in a branded wireless service offering. Partnerships with a customer care firm are equally important for MVNOs because companies launching these branded wireless phone services must implement and support a rapidly scalable customer support infrastructure to support customer acquisition, customer service and billing capabilities. StarTek's MVNO Services are designed to meet these unique customer care needs of MVNO companies. In its pursuit of an MVNO-based wireless phone service, StarTek's multinational client draws upon its vast experience delivering communications services to millions of retail and wholesale customers in 225 countries. The client has partnered with an international telecommunications company to provide network infrastructure and with StarTek to provide customer care for the Hispanic market throughout North America. "MVNOs face many unique customer care challenges, many of which are a result of how quickly they ramp up from their first customer to a half-million or a million customers. That puts a tremendous burden on a customer care group, which StarTek's MVNO Services are specifically designed to address," said Steve Butler, StarTek's CEO. "Our client's strong brand and StarTek's expertise in customer care for MVNOs will be a winning combination to help transform millions of calling card customers into wireless customers." StarTek's MVNO Services allow MVNO companies to: -- Minimize startup cash outlay by using StarTek's proven, optimized support infrastructure. -- Quickly implement industry best-of-class service solutions to maximize cross-sell opportunities and improve the customer experience. -- Establish high service levels and customer satisfaction that position you as the provider of choice and reduce churn. -- Control transaction costs to maximize margins. -- Minimize average handle times to optimize return on investment. StarTek's multi-service agreement with the client endures for three years. For more information about StarTek's MVNO Services, visit www.startek.com. About StarTek StarTek Inc. is a leading provider of business process outsourced services, which consist of business process management and supply chain management services. StarTek provides services from seventeen operating facilities, including four in Colorado, five in Canada, two in Virginia and one each in Illinois, Louisiana, Oklahoma, Tennessee, Texas and Wyoming. The Company's primary clients are in the telecommunications industry, and it also serves clients in the computer software and hardware, consumer products, cable TV, entertainment, internet, and e-commerce industries. Please visit the Company's website at www.startek.com. Forward Looking Statements The matters regarding the future discussed in this news release include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to a number of risks and uncertainties. The following are important risks and uncertainties relating to StarTek's business that could cause StarTek's actual results to differ materially from those expressed or implied by any such forward-looking statements. These include, but are not limited to, loss of its principal clients, concentration of its client base in a few select industries, highly competitive markets, risks related to its contracts, decreases in numbers of vendors used by clients or potential clients, lack of success of StarTek's clients' products or services, considerable pricing pressure, risks relating to fluctuations in the value of StarTek's investment securities portfolio, risks associated with advanced technologies, inability to grow its business, inability to effectively manage growth, dependence on qualified employees and key management personnel, potential future declines in revenue, lack of a significant international presence, and risks relating to conducting business in Canada. Readers are encouraged to review Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Factors and all other disclosures appearing in the Company's Form 10-K for the year ended December 31, 2004, and subsequent filings with the Securities and Exchange Commission.