Thursday June 8, 8:04 am Eastern Time
Company Press Release
Newgold Expands Its Investment Portfolio to Include RealtyOnline.net, Inc.
DALLAS--(BUSINESS WIRE)--June 8, 2000--Newgold, Inc. (OTCBB:NGLD - news) dba Newgold.com announced today that RealtyOnline.net, Inc., a leading provider of online real estate and property listing information, has been added to the Newgold stable of Internet business-to-business (B2B) companies.
Under terms of the RealtyOnline.net agreement, Newgold will own a total of 40 percent of RealtyOnline.net for approximately $4 million in operational support, technology development and funding. RealtyOnline.net will use the proceeds to continue development of its products and services and to expand its advertising and promotions activities.
Newgold believes that RealtyOnline.net's unique business model and ``one source'' real estate search engine positions the company as an aggregator of aggregators in the real estate industry. Aggregators, such as the RealEstateBook.com and NewHomesDirect.com, gather property-listing information for use by real estate professionals, property management companies, developers, mortgage companies, consumers and others. Their content and listing information feed RealtyOnline.net's data engine through co-branding partnerships, creating one of the largest hybrid networks for property content with over 2 million listings. The RealtyOnline Network is dedicated to providing a fast, user-friendly, open-ended system that organizes and manages property databases that include: residential properties, commercial properties, undeveloped land, rental and lease properties, relocation and corporate properties, senior and retirement properties, foreclosures, vacation, and time-share properties. The company has multiple revenue sources and projects first year revenues to exceed $8 million, then rise to $30 million dollars by 2002.
``The acquisition of RealtyOnline.net is an excellent example of the Newgold strategy,'' said Newgold President and CEO, James Cutburth. ``The company has all the ingredients we look for -- a sound business plan for a high-tech Internet company, growing potential market, and a dedicated team that can achieve the company's goals quickly and efficiently. With the additional resources of Newgold, we expect to see RealtyOnline.net become a dominant player very quickly in the explosive on-line realty arena.''
Newgold specializes in identifying high-potential start up companies and makes strategic investments in them. What sets Newgold apart from traditional incubators is that accompanying the Newgold investment are additional resources of legal counsel, strategic marketing advice, human resources initiatives, and a range of technical services to achieve the necessary critical mass to become independent within 18-20 months -- significantly faster than traditional incubator companies.
As the primary aggregator of aggregated content and an e-commerce enabler, RealtyOnline.net has secured a niche in the vast real estate market. With over 1 million real estate agents in the United States, consumers spend in excess of $30 billion annually for assistance with the finding, buying and selling of residential property. In fact, the real estate industry accounts for approximately 15% of the gross domestic product of the United States and is, therefore, one of the largest sectors of the economy.
``We are very excited about our partnership with RealtyOnline.net. Using their 'one-stop' real estate source as a promotional vehicle, we are able to drive consumers directly to our customer base -- the real estate professional and agent. This provides us with a strong, value-added service offering,'' stated Raymond Peabody, director of Online Services for Network Communications, Inc. As a co-branded partner of RealtyOnline.net, Network Communications, Inc. provides thousands of listings from such web sources as the RealEstateBook.com, ApartmentBlueBook.com, NewHomeFinder.net, UniqueHomes.com, MatureLivingChoices.com, LivingChoices.com, and CorporateChoices.com.
``We are pleased to receive such enthusiastic support from the Newgold incubation group during this time of rapid growth for RealtyOnline.net,'' said Charles Anderson, CEO of RealtyOnline.net Inc. ``We expect that these core services, strategic partnerships, operational support and funds will enable us to continue our work to provide the entire real estate industry with integrated Internet technology solutions and Internet-based tools to facilitate, support, and enhance all aspects of online real estate transactions.''
About Newgold
Newgold (www.newgold.com), the ``next generation'' of Internet investment companies, has recently adopted a profitability-centric partnership incubation model targeting high-tech, business-to-business, e-commerce and application service provider (ASP) start-up companies. As a Newgold portfolio company, early stage entities receive the necessary cash and other resources (human, legal, marketing, technical) to support their growing activities in an efficient manner. The Newgold model is designed to prepare these companies for an initial public offering or other liquidity event within an accelerated time frame of 18-20 months. Newgold's strategy is to help build companies that can withstand the traditional tests for investment -- profitability and time.
About RealtyOnline.net, Inc.
RealtyOnline.Net (www.realtyonline.net) is a one-of-a-kind real estate system for on-line property listings and promotion. Unlike traditional ``listing aggregators'' RealtyOnline.net draws from its own pool of listings and combines that with listing data of other industry players to benefit the real estate professional and consumer alike.
The extensive RealtyOnline.net database includes residential, new home construction, commercial, rental, lease, relocation, corporate, senior, retirement, foreclosure, vacation and time-share properties, in addition to apartments and undeveloped land.
Safe Harbor Statement
The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve risks and uncertainties. All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. These statements contain worlds such as ``believes,'' ``expects,'' ``intends,'' ``strategy'' and similar expressions and include statements regarding Newgold's strategy and efforts to obtain funding commitments. Although Newgold believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Newgold cautions investors that any forward-looking statements made by Newgold are not guarantees of future performance and that actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, risks and uncertainties regarding the performance of Newgold's partner companies, the unproven nature of Newgold's business model the risk that investment opportunities in target companies meeting Newgold's criteria may not be available upon terms acceptable to Newgold, if at all, the risk that the capital and other resources that Newgold will need to exploit its business model will not be available, and the other risks discussed in Newgold's From 10KSB and in Newgold's other filings with the SEC.
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Contact:
Newgold, Inc., Dallas
Judson Rogers, 972/851-5433
judson@newgold.com
or
RealtyOnline.net
Kurt Swauger, 818/879-1027
kurt@realtyonline.net
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