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FWHT runs the Findwhat.com search engine which, like GOTO, is based on a model which requires advertisers to "bid" on the click rate they will pay. This creates an auction atmosphere, but advertisers love it because they only pay for results. So far, Goto has had little meaningful competition, but Findwhat is breathing down its neck. It recently got $5 million in new investments (some of that in the form of advertising), and is looking to list soon on the NASDAQ SmallCap market, which could cause a real run up. Nice volume, and action today. Here is yesterday's news release:
FindWhat.com Receives Endorsement and $2,000,000 Investment From Andrew Lessman; Plans Call for Database Access, Direct Marketing Expertise for FindWhat.com
LOS ANGELES--(BUSINESS WIRE)--Feb. 16, 2000--FindWhat.com (OTCBB:FWHT), operator of a pay-for-position Internet search engine offering performance-based Net advertising services, is teaming up with Andrew Lessman's Winning Combination, a direct response supplier and manufacturer of nutritional supplements.
Under the terms of the agreement, FindWhat.com received a $2 million cash investment from Andrew Lessman. In return, Lessman received 500,000 shares of restricted FindWhat.com common stock and a warrant to purchase an additional 125,000 shares.
Plans between FindWhat.com and Winning Combination call for development assistance from FindWhat.com for Winning Combination's YourVitamins.com future Web site, along with Winning Combination providing call center services, media buying, direct marketing and other customer support services to FindWhat.com.
"Andrew Lessman's Winning Combination has a huge customer database that with Andrew's endorsement we plan to leverage the FindWhat.com brand," Courtney Jones, chairman, FindWhat.com, said. "This deal is much more than a cash investment; it is a strategic partnership that should have far-reaching implications for FindWhat.com."
Founded by Home Shopping Network health guru Andrew Lessman, Winning Combination provides vitamins and health supplements to consumers through direct marketing on radio and television.
"This is more than a win-win investment, FindWhat.com will accelerate and assist in the launch of our new Web site, www.YourVitamins.com," Andrew Lessman, president and CEO of Winning Combination, said. "Our endorsement and direct marketing touch and infrastructure should grow the FindWhat.com search engine."
"Lessman's name really sweetens the deal," Jones added. "His products have had meteoric growth in the last few years and resulted in a loyal following with millions of customers."
Lessman intends to launch his health-related Web site, www.YourVitamins.com, in the next 90 days. He plans to tap the brainpower and expertise of FindWhat.com in support of his new online venture.
About Andrew Lessman's Winning Combination
Andrew Lessman's Winning Combination is a privately held manufacturer and marketer of nutritional supplements located in Henderson, Nev. The company employs over 300 individuals and markets its products via television, radio and print direct marketing. Winning Combination also manufactures product exclusively for The Home Shopping Network and Weight Watchers International among others. The company also has wholly-owned subsidiaries in jet aviation, commercial construction, software development and e-commerce advertising. In April of this year the Winning Combination will move its million-person database to the Internet at YourVitamins.com in conjunction with FindWhat.com.
About FindWhat.com
Launched in September 1999, FindWhat.com operates an online marketplace where Web publishers use an automated bidding process to determine the per-click fee they will pay for premier placement on the search results returned by the FindWhat.com search engine. The Web sites offering the highest bid for particular keywords and key phrases appear first on the list of search results. This cost-effective, pay-for-performance model allows Web publishers to pay only for those customers who click through to their sites. For more information, visit findwhat.com.
This news release contains statements that are not purely historical, and as such are forward-looking statements under the federal securities laws. These include forward-looking statements regarding management's intentions, plans, hopes, beliefs, expectations or projections of the future, and include statements in this document regarding plans between FindWhat.com and Winning Combination, implications of Mr. Lessman's investment, growth of the FindWhat.com search engine. These forward looking statements involve risks and uncertainties, including without limitation, acceptance of the company's products and services; additional financing requirements; the impact of competitive products or pricing, technological changes; the effect of economic conditions; the ability to successfully commercialize the FindWhat.com service; identifying and establishing relationships with future online marketing participants; dependence on the company's agreement with Inktomi to provide supplemental search data; patent rights which could prevent the company from offering the FindWhat.com service in its present form; dependence on third parties for certain software and Internet services for the FindWhat.com search service; successful expansion of the company's network infrastructure and customer support capabilities; and other risks and uncertainties detailed from time to time in the company's reports filed with the Securities and Exchange Commission. These SEC filings include the company's Form 10, filed December 9, 1999. One or more of these factors have affected, and could in the future affect, the company's business and financial results in future periods, and could cause actual results to differ materially from plans and projections. There can be no assurance that the forward-looking statements made in this news release will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by the company, or any other person, that the objectives and plans of the company will be achieved. All forward-looking statements made in this news release are based on information presently available to management, and the company assumes no obligation to update any forward-looking statements.
CONTACT:
The Bohle Company
310/785-0515
Annette Svedas
annette@bohle.com
Allison Tatum
allison@bohle.com
or
Global Financial Resources Inc.
Gary Smolen, 603/536-5544 (investors)
gsmolen99@yahoo.com
KEYWORD: CALIFORNIA
BW0420 FEB 16,2000
11:51 PACIFIC
14:51 EASTERN |
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