(BSNS WIRE) Go Online Networks Completes Acquisition of Digital West Market
Go Online Networks Completes Acquisition of Digital West Marketing, Inc.
Business Editors
BUENA PARK, Calif.--(BUSINESS WIRE)--Sept. 5, 2000--Go Online
Networks Corporation (OTCBB:GONT) today announced it has completed
the acquisition of Digital West Marketing, Inc. a state-of-the-art,
multi-product facility that provides value added services and products
for major PC brands and system components, in Chatsworth, CA.
On June 19, 2000 Go Online Networks announced a definitive
agreement to acquire Digital West. Under terms of the acquisition
agreement, Go Online Networks paid Digital West $825,000 along with
issuing 750,000 shares of Go Online common shares for 100% of Digital
West's outstanding shares. The acquisition is being accounted for
using pooling accounting.
Joseph Naughton, CEO of Go Online Networks announced that as part
of the acquisition agreement, Andrew Hart, founder and President of
Digital West, has agreed to a long term employment agreement to remain
as President of Digital West, which now becomes a wholly-owned
subsidiary of Go Online Networks Corporation.
Naughton said Go Online expects the sales base of the consolidated
company to increase by over 300% in the third quarter compared to this
year's second quarter and expects fourth quarter sales to exceed $2
million in consolidated sales for the company compared to $89 thousand
in the fourth quarter of 1999.
About Digital West Marketing, Inc.
Digital West is a privately-held computer service firm based in
Chatsworth, California, north of Los Angeles. Revenues for 1999 were
approximately $6.8 million. The company operates out of a 24,000
square foot facility currently employing in excess of 45 people. The
core of Digital West's business is to contract with major retail
entities and computer hardware manufacturers to refurbish computer
products returned to retail establishments by customers. The products
are re-engineered or refurbished to factory specifications by Digital
West's factory trained A+ certified technicians. The computer products
including hard drives, CD ROMs, monitors, printers, circuit boards, CD
writers, DAT drives are then resold into the secondary market and
service channels. Digital West is a state-of-the-art, multi-vendor
multi-product facility that provides value-added services, logistics
services, depot repair, and spare parts distribution for virtually all
major PC brands and system components including peripherals. Digital
West deals with more than forty manufacturers to ensure an ability to
handle any and all customer's requests for programs such as repair,
part sales, advance exchanges, cross-ships, emergency parts and other
asset management programs. For more information on Digital West
Marketing Inc. please visit their web site at www.DigitalWest.com.
"We are excited about joining Go Online's family of technology and
Internet companies. Tremendous synergies exist between our operation
and the Go Online Networks' vision. We anticipate a complete
integration of our business strategies and plan to substantially ramp
up revenues for the remainder of the year 2000," stated Andrew Hart,
President and CEO of Digital West Marketing Inc.
Joseph Naughton, Chairman of Go Online Networks commented on the
Digital West acquisition, "Andrew Harts' business, Digital West
Marketing Inc., is a perfect fit for Go Online Networks. By
capitalizing on the 'Brick and Mortar' retail sectors' huge need to
recapture value from returned products, the refurbishing industry has
grown into an industry representing hundreds of millions of dollars in
potential revenue. Gaining preferential vendor status from retail
giants and the 'who's who' of the computer hardware sector allows
refurbishing entities to model substantial growth and earnings
potential without extensive capital requirements. I personally have
been involved with these issues working for 'Big Box Brick and Mortar'
retailers for most of my professional career. Digital West is
incredibly well positioned to expand its already solid alliances with
both retailers and manufacturers to create a value-added interface
with tremendous growth potential."
About Go Online Networks Corporation
Go Online Networks Corp. is a Buena Park Internet technology and
marketing concern, consisting of core Internet divisions, Go Online
Kiosk Division, Shop Go Online, and its business-to-business
subsidiary GoOn-line.com.
Shop Go Online Division
Shop Go Online is an e-commerce business, offering a wide variety
of consumer products for purchase online. Many products are displayed
using state-of-the-art streaming video and audio technology, such as
Panoscan and IBM Hot Media, enhancing the shopping experience.
www.ShopGoOnline.com
GoOn-line.com B2B Division
Go Online Networks B2B division offers state-of-the-art designs
for e-commerce sites for companies, in either business-to-business
(B2B) or business to consumer (B2C) realms, utilizing the latest in
technology available on the Web today. www.GoOn-line.com
Go Online Kiosk Division
The Go Online Kiosk Division owns and operates audiovisual
Internet Kiosk systems custom-designed to provide consumer's access to
the Internet from public Locations throughout the United States. The
current focus is on obtaining multi-year exclusive site agreements
from national hotel franchisees. Consumers can access the Internet by
paying with cash or credit card and can surf the World Wide Web or
send and receive e-mails. Additional revenues can be obtained by
selling screen saver and banner ads.
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Act of 1995. Expression of future goals and similar
expressions reflecting something other than historical fact involve
risks and uncertainties. The actual results the company achieves may
differ materially from any forward-looking statements due to such
risks and uncertainties.
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CONTACT: Go Online Networks Corporations
Joseph Naughton, 714/736-9888 (Chairman)
Joe@GoOnlineNetworks.com
www.GONTINVESTOR.com (Investor information)
or
Digital West Marketing Inc.
Andrew Hart, 818/718-7500 (CEO and President)
AHart@DigitalWest.com
www.DigitalWest.com
or
PMR and Associates, LLC
Patrick M. Rost, 760/942-0015 (Investor Relations)
PMRandCO@AOL.com
or
Charterbridge Financial Group Inc.
Travis Christ, 619/696-8000 (Financial Relations)
tchrist@charterbridge.net
www.charterbridge.net
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE INTERNET
MANUFACTURING RETAIL MERGERS/ACQ
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