GALAVU CLOSES $5.1 MILLION PURCHASE OF ROGERS HOTEL ENTERTAINMENT
DIVISION - TWC
MARKHAM,
Ontario, Canada (May 21, 1997) GalaVu Entertainment Inc. (CDN:GENI) and Rogers Cablesystems Limited today
jointly announce that, pursuant to their letter of intent, GalaVu has now acquired Tele-World Communications (TWC),
a division of Rogers Cablesystems. TWC provides pay-per-view and a range of interactive services to the lodging
industry with approximately 19,000 rooms under contract in Canada.
Of the $5.1 million purchase price, Rogers is receiving $3.1 million in cash and $2 million in GalaVu common stock.
"We're pleased to be able to complete this arrangement with GalaVu," said Ted Rogers, Acting President and CEO,
Rogers Cablesystems Limited. "Our new relationship gives us the best possible solution- our cable services will continue
to be offered to a large base of rooms while the pay-per-view and interactive services will be managed by an expert, in
the in-room entertainment industry."
"We are delighted to be able to finalize this deal with Rogers," added Paul Nielsen, GalaVu President and CEO. "This
significant increase to our installed room base will have an immediate positive impact on cash flow and give us a solid
foundation from which to pursue our aggressive growth plans. We also welcome Rogers as a business partner and a
major shareholder. This transaction concludes an exciting two week period, during which the Company has received
financing commitments for $25.75 million of new working capital."
Rogers Cablesystems Limited, Canada's largest cable operator, provides entertainment, information and
communications services to approximately 2.2 million customers in Ontario and British Columbia. Its hybrid
fiber-coaxial network is ideally suited for delivering interactive products and services that require significant bandwidth.
The company also owns and operates over 170 Rogers Video stores.
GalaVu Entertainment Inc. provides leading-edge entertainment and information services to the global hospitality
industry, with a strategic market focus on the unserved small and medium-sized property segment. Utilizing proprietary
technology, GalaVu's interactive system provides a wide range of affordable, in-room entertainment packages.
Marketed to guests under the 'Round-the-Clock Entertainment brand, GalaVu's suite of products includes premium
television programming, live sporting events, Hollywood movies on demand, video games and other information and
entertainment services.
For more information regarding GalaVu Entertainment Inc., please contact Investor Relations at Frankopan & Co. @
905-814-0030. For media relations please contact Paul Pivato at 905-476-1727. GalaVu shares are available for
quotation or trading on the Canadian Dealing Network under the symbol "GENI." There are 11,988,575 shares issued
and outstanding.
For information regarding Rogers Cablesystems Limited please contact Joan Simkins at 416-446-6697. |
