WASHINGTON, Dec. 19 /PRNewswire/ -- The Union Labor Life Insurance Company today announced that it has become a principal investor in Campuslink Communications Systems, Inc., of Ann Arbor, Michigan, a new company that gives colleges and universities the ability to offer students and faculty the latest network communications, including Internet access, voicemail, and cable television. Union Labor Life's investment totals $5.5 million.
The investment was made through Union Labor Life's Private Capital Fund, an alternative financing program that marries the needs of small to mid-sized companies for capital and the desire on the part of jointly managed trust funds to invest pension assets in American companies and American jobs.
Campuslink, which has recently formed a business alliance with IBM, is a dedicated, integrated provider of telephone, video, data, and other communication services to higher education. Through the IBM/Campuslink agreement, institutions will be able to upgrade, expand, or replace outdated communications systems and infrastructure with customized network systems.
"The demand by schools for new technology and integrated, or one-stop, communications services is expected to expand significantly over the next five years," said Michael R. Steed, senior vice president, Investment Services, ULLICO Inc. "Campuslink has the expertise and the management talent to meet that demand, and we believe that the outlook for the company is very positive," he said.
There are more than 3,500 public and private colleges and universities in the United States. They enroll more than 14 million students and employ about 2.6 million people. Campuslink targets schools with 500 to 10,000 students, representing a market of more than 2,300 schools and 6.7 million students.
Campuslink is currently providing telecommunications services to approximately 6,500 subscribers in 10 schools, including Tufts University, Texas Christian University, Manhattanville College, and Sarah Lawrence College.
Introduced in 1996, the Private Capital Fund (or Separate Account P, Union Labor Life) includes among its investments a $240 million project to build five environmentally superior tankers at a U.S. shipyard. During construction and after delivery in 1998, the tanker project will provide thousands of jobs for union shipyard workers and seafarers.
A major goal of the Private Capital Fund is to maintain and create jobs for union members, while at the same time achieving superior returns for the pensioners of client jointly managed trust funds. With respect to Campuslink, the company has agreed not to oppose any attempt to organize its employees and to employ unionized contractors and subcontractors for the construction and installation of network systems at all future sites.
Union Labor Life is a subsidiary of ULLICO Inc., a diversified insurance and financial services corporation based in Washington, DC.
SOURCE Union Labor Life Insurance Company
-0- 12/19/96
/CONTACT: John Rodgers of Union Labor Life Insurance Company, 202-682-4907/
CO: Union Labor Life Insurance Company, Campuslink Communications Systems,
Inc. ST: District of Columbia IN: INS TLS SU:
JA -- DCTH022 -- 7410 12/19/96 11:39 EST http://www.prnewswire.com
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