***A collaboration posted by Brady_B***
During 1997, Zulu-tek,Inc.("ZULU") began an effective roll-up of comp-
anies and technologies,within the Internet sector. ZULU acquired
Echo-media in August 1997,and in December,1997 acquired SoftBank
Interactive Marketing,Inc.("SIM"). While SIM reported Gross Sales of
around $39.0 million for the year end December 31,1997,it had severe
management problems and had losses or write-off's totalling almost
$30.0 million, for that year.
During 1998, ZULU worked on a turn-around of SIM,subsequently renamed
Zulu-media,and restructured and focused its business on the industry
niches which have long term profit potential,as well as reviewing many
other acquisitions with varying degrees of success.
In March,1998 ZULU and Enhanced Services Company,Inc.("ESVS") entered
into an agreement which resulted in ESVS purchasing the assets of ZULU
in September,1998,subject to stockholder approval.
Due to the complexity of the accounting and consolidation of the many
units which come to ultimately make up ESVS,the audits and subsequent
Proxy preparation has taken much longer than most or all of us would
have liked. The Stockholders meeting to ratify these issue is expected
to take place in California in early February,1999.
In late 1998, ESVS was delisted from NASDAQ based upon accounting
technicalities,and the company has said it will seek listing on AMEX
or the NMS,once its accounting issues are fully addressed.
The group has had numerous management changes but now appears on solid
ground under the new COO,Rob Chmiel,who was formally CFO at
barnes&noble.com,and prior to that spent six years at Disney On-line.
Rumors abound regarding pending executive appointments,and the group
has said it is "Interviewing several top candidates".
In December,1998, ESVS acquired BrandsForLess.com, and on-line shopping web
site. Brandsforless.com is located in Connecticut and
was mentioned in a Lehmann Bros. research report among top private internet
co's to
watch. Its sales results for December were reportedly
substantial. Its advertising campaign and banners can be seen on
geocities,hotbot,dejanews,and the Zulu network.
Following the shareholders meeting,it is expected that the combined
entity will be called ZuluGroup.com,here are some web sites for further
reference:
www.zulumedia.com
www.brands4less.com
Contacts are:
PR- Sitrick&Co. Los Angeles (310) 788-2850
Brokers & Analysts- Piedmont Consulting (404) 233-6999 |
