The proposed financing will facilitate the restructuring of the company debt and support its global reorganization. Terms were not announced pending negotiation and approval of definitive agreements.
ACT's subordinated debt lenders have agreed to a timetable for completion of definitive agreements by the company and the investor, regulatory compliance, and a shareholder meeting to allow the company's shareholders to vote on the transaction. The company expects to close on the financing on or before June 1, 2005.

ACT CEO and President Gene Warren stated, "We believe the terms of the proposed agreement are favorable to ACT and our shareholders. The capital it provides will be sufficient to refinance our existing debt and provide working capital to strengthen our balance sheet. This capital infusion combined with the cost savings of our new operational structure will help us achieve our goal of improved financial performance in 2005."

Established in 1990, ACT Teleconferencing, Inc. is a leading independent worldwide provider of audio, video and web-based conferencing products and services to corporations, educational organizations, and governments worldwide. ACT's Internet address is www.acttel.com.