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Thursday April 30, 10:51 am Eastern Time
Company Press Release
SOURCE: TeleServices International Group Inc.
TeleServices International Group Inc. Completes Acquisition of Compact
Connection, Inc.
ST. PETERSBURG, Fla., April 30 /PRNewswire/ -- TeleServices International
Group Inc. (OTC Bulletin Board: TSIG - news), a fully integrated provider of
outsourced teleservices, today announced that it has completed the acquisition
of the assets of Santa Ana, California-based Compact Connection, Inc. (CCI),
one of the ten largest direct music marketers in the United States, in an all
stock transaction valued at $15 million. TeleServices will operate the
business of CCI through a newly formed subsidiary of the Company.
On March 12, 1998, TeleServices International Group reported that it had
signed a Definitive Agreement to acquire CCI.
In 1997, CCI serviced over 1.5 million customers; sold more than one million
compact discs; generated $11 million in revenue; and reported $800,000, or
seven percent, in net profit (unaudited).
CCI is well-positioned within the $35 billion global music market and the $71
million global online music market that includes N2K (Nasdaq: NTKI - news),
Cdnow (Nasdaq: CDNW - news) and K-Tel (Nasdaq: KTEL - news). CCI is the only
direct music marketer in the world that can offer a combination of:
The guaranteed lowest prices (including shipping and handling) to consumers on
all CD's and cassettes, including new releases; 24 hour, seven day a week,
ordering capability either via the Internet or toll-free 800 number and;
proven, turn-key, private-label music card opportunities for its marketing
partners.
CCI's state-of-the-art web site is currently under construction at
ccmusiccard.com. CCI's new online commerce site will be positioned
on a high-speed server capable of accommodating 1.5 million existing music
card holders as well as millions of new members that will have easy access to
the world's best music prices. In addition, CCI's Music Card's World Wide Web
site will have advanced web technology for searching, ordering and reordering
and will feature the latest in ''push'' technology. The web site will provide
CCI's Music Card holders with an enjoyable, and efficient online experience.
''The purchase of Compact Connection is an integral part of our long-term
business strategy to concentrate our efforts on creating revenue streams that
capitalize on using our call centers and Internet expertise,'' stated Robert
Gordon, Chairman of TeleServices International Group Inc.
''Plans are being finalized to aggressively support the CCI Music Card with an
upbeat national marketing campaign that will utilize cable television, print,
the Internet, radio and direct mail in the marketing mix,'' said Darrell
Piercy, President of Compact Connection, Inc. ''We believe in our ability to
compete in N2K's, Cdnow's and K-Tel's online market segment and provide cost
saving, pleasurable alternatives to such record clubs as Columbia House and
BMG, without compromising our profit margins.''
TeleServices International Group, Inc. is an independent provider of fully
integrated global teleservices to companies focused on selling products and
services through toll-free numbers and the Internet. The Company's wide array
of teleservices includes telephone sales/order capturing, customer service and
product support as well as ect-response advertising. Visit TeleServices web
site at stockprofiles.com, or email cci@tsig.com.
Except for historical information, matters discussed in this press release are
forward-looking statements that involve risk and uncertainties, including but
not limited to, risks associated with entering new markets, competitive
pressures and other important factors.
SOURCE: TeleServices International Group Inc. |
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