Minnesota American Launches E-Commerce Storefronts
MINNEAPOLIS--(BUSINESS WIRE)--April 27,1999--Minnesota American, Inc. (OTCBB:MNAC - news)Minnesota American, Inc. (www.minnesotaamerican.com), a Midwestern holding company active in
the organizational products market, announces the creation of e-commerce storefronts for both of its wholly owned subsidiaries, LockerMate Corp.® (www.lockermate.com) and Favorite Memories,Inc.(TM) (www.favoritememoriesinc.com).
This move is significant because it aligns both brands with the consumer buying behavior shift towards Internet purchasing.
''We are extremely excited about our ability to conduct e-commerce,'' said George W. Wood, president and CEO of both Minnesota American subsidiaries. ''The frequency of our target market making secure, e-commerce purchases is increasing exponentially. We are making our product available to them via a medium that is becoming a preferable purchasing outlet.'' Wood re-enforced that the e-commerce capability supports, not replaces, Minnesota American's current distribution
capabilities via discount retailers and general merchandisers.
In a related move, Minnesota American recently created an on-line alliance with flowersandgifts.com as part of its strategy of integrated promotion on the Internet. ''This alliance not only enhances our e-commerce capabilities, but will also deliver tremendous amounts of eyeball traffic to our LockerMate® and Favorite Memories, Inc.(tm) websites,'' said Wood. He added that Minnesota American is now armed with a significant tool to leverage additional brand category acquisitions as part of the company's growth strategy.
As part of the transaction with flowersandgifts.com, Minnesota American has purchased approximately 1 percent of flowersandgifts.com stock, with an option to buy approximately 1.5 percent more under the same terms and conditions. As of publication, this option has been partially exercised.
flowersandgifts.com has a unique e-commerce business model that addresses the $10 billion market it serves. ''flowersandgifts.com's business strategy is to provide consumers with a myriad of on-line
shopping experiences via storefronting, and harness the power of a proprietary search engine by which thousands of consumer product companies can gain access to e-commerce opportunities through flowersandgifts.com,'' said Pierce McNally, chairman and CEO of Minnesota American.
LockerMate® is the market leader in the school locker shelving and accessories segment. It has generated increasing profits the past four years. To exploit a major growth opportunity, Minnesota American purchased Favorite Memories, Inc.(tm) in December 1998. Its product line includes My Favorite School Memories(tm) and My Sports Memories(tm), albums that serve as an integrated photo album, journal and scrapbook. These two products have carved out a distinctive niche in the $1.7 billion school and sports photography industry as the ideal tool for organizing childhood memories.
Minnesota American, Inc. typifies a company with an aggressive and well-planned growth strategy. Its wholly owned subsidiaries generated a 79% increase in net income in 1998 to $388,566 from $217,234 in 1997. This translates into a doubling of EPS on its 3.5 million shares to $.10 in 1998 from $.05 in 1997.
Minnesota American, Inc. is based in Minnetonka, Minnesota. For more information on Minnesota American, Inc., visit www.minnesotaamerican.com. For more information on its subsidiaries and product offerings, visit www.lockermate.com or www.favoritememoriesinc.com.
Statements used in this press release that relate to future plans, events, financial results or performance are forward-looking statements under applicable securities laws. Actual results may
differ from anticipated results due to factors such as acceptance of the company's products, effectiveness of retail and e-commerce distribution channels and other risks and uncertainties.
Contact:
Tony Harris - (612) 925-4848
(Investor Relations-Media)
Greg Laborde - (212) 701-8597
(Analyst Inquiries)
Julie McAdam - (612) 945-9750
(CFO, Minnesota American)
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