March 22, 2002 09:53
Hop-On Deal Valued at More Than $25 Million Annually
Three-Year Distribution Agreement Covers the UK and Spain
GARDEN GROVE, Calif., March 22 /PRNewswire-FirstCall/ -- Hop-On (OTC: HPON), the leading developer of disposable and fully recyclable cell phones, today announced that it has entered an exclusive agreement, with a private London based corporation, which calls for a minimum purchase of 1 million of Hop-On's GSM phones per year, valued at more than $25 million annually. The phones will be distributed in the UK and Spain as part of the 3-year exclusive agreement.
Under the agreement, Hop-On will initially receive a $1 million distribution fee, which will be used for general corporate operations. This agreement also gives Hop-On the opportunity to receive monthly recurring revenue in the form of a percentage of the airtime sold to consumers. Importantly, Hop-On will receive an irrevocable letter of credit to finance the manufacturing of the phones for overseas distribution in the fourth quarter.
Peter Michaels, Chairman and CEO of Hop-On, said, "We continue to secure the financial and distribution partners needed to achieve our long-term objective of making Hop-On a global brand in communications. This was a very strategic deal for us given the volume commitments. Further, the UK and Spain are very attractive markets for us because of the demographics and recognition as two of the world's most heavily traveled tourist locations. We are confident that the high interest in our phones will translate into additional purchase orders."
About Hop-On
Hop-On (OTC: HPON) is the developer and marketer of the world's first disposable, fully recyclable and contract free cell phone. Based out of Garden Grove, California, Hop-On will be distributing its products through some of the nation's largest retailers and convenience stores. The company will provide users with national coverage through some of the nation's preeminent carriers. For more information, visit hop-on.com.
Hop-On's disposable cell phone provides a much-needed alternative to full service cellular contracts and prepaid calling cards. Unlike traditional cell phones, Hop-On's users will not incur long-distance charges, activation or roaming fees. The environmentally friendly phones will be recycled through the company's recycling plan.
Underscoring the Company's commitment to consumer safety, Hop-On's hands free cell phone will be sold with and require an earpiece/microphone for operation. This has become even more critical as states move to ban motorists' usage of traditional handheld cell phones. On September 25, 2001 the Miami Dade County Commission adopted an ordinance banning the use of cell phones by motorists unless they use a headset or other hands-free device. The ordinance will go into effect October 2002. New York has a similar statewide ban, as do individual municipalities in Pennsylvania, Oklahoma and Tennessee, among others.
CONTACTS:
David Pasquale, 646-536-7006, or Jim Olecki, 646-536-7021
Both of The Ruth Group, theruthgroup.com
This Company's news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, software functionality and capacity, timing of the commencement of operations and cash flow, and are indicated by words or phrases such as "anticipate," "estimate," "plans" and similar words or phrases. The following are among the principal factors that could cause actual results to differ materially from the forward-looking statements: general business and economic conditions in the Company's operations, including the rate of inflation, population, employment and job growth rate, the pricing pressures and other competitive factors and issues arising from year 2000 information technology issues. Consequently actual events and results may vary significantly from those included in or contemplated or implied by such statements.
SOURCE Hop-On
/CONTACT: David Pasquale, +1-646-536-7006, or Jim Olecki,
+1-646-536-7021, both of The Ruth Group for Hop-On/ |
