In Case somebody gives a dam about this stock there was good news Friday
Friday July 30, 10:00 am Eastern Time
Company Press Release
SHOPNET.COM, Inc Announces Signing of
Agreement by Their Affiliate
NEW YORK--(BUSINESS WIRE)--July 30, 1999--SHOPNET.COM (Nasdaq: SPNT -
news) yesterday announced that its affiliate, Play Co. Toys & Entertainment Corp. (''Play
Co. Toys'' or the ''Company'' for Play Co. Toys and subsidiaries collectively) announced today that it has entered into an
investment agreement with an investment banking firm to take public its subsidiary, Toys International.COM, Inc. (''Toys
International''), in an initial public offering.
The investment agreement anticipates IPO proceeds of approximately $20 million to $25 million through the sale of 22% of
Toys International based on a pre-IPO valuation of $100 million. The investment agreement calls for the IPO to occur in
approximately 90 days.
As part of the investment agreement the investment banking firm participated in a $2.8 million pre-IPO private equity placement
in Toys International. The company has already received those funds. Toys International currently operates 19 of the
Company's 26 stores as well as its Internet operations.
Richard Brady, President of the Company states, ''We are very excited about this pivotal development in our Company's
progress. We plan to use the proceeds of the recent private equity placement and of the upcoming IPO to finance a significantly
upgraded e-commerce operation. We are working with two prominent Internet consulting firms to develop and upgrade our
worldwide Internet web sites to a what we believe will be a world class level. We are at present preparing and enhancing three
unique and different children's toy sites with a fourth to follow shortly. We expect to go live with our unique sites worldwide in
September and October, in time to participate in the Holiday season.''
Mr. Brady went on to state ''We also plan to use the proceeds of these financing to help support our current store expansion
program in high traffic shopping malls. At present, we have signed leases to open ten new national locations through the end of
the year 2000. We will build a major theme store in each location. We also would like to note that our recently opened store in
the Venetian Resort & Casino in Las Vegas has surpassed our expectations to date in its daily sales level.''
Play Co. Toys is a toy retailer with 26 stores located in six states. The Company operates under the Play Co. Toys, Toys
International and Toy Co. trade names. Play Co. Toys specializes in offering educational, specialty, collectible, specialty
imported and traditional toys.
SHOPNET.COM's Breaking Waves, Inc subsidiary's Small Waves website (www.smallwavesswimwear.com) which is
known for selling deep discounted, high quality children's swimwear direct to the public, will expand it's line of merchandise to
include children's toys and merchandise featured on Play Co. Toy's website, Toys Why Pay
Retail(www.toyswhypayretail.com). The highly discounted toys and specialty items will augment Small Waves offerings and
establish Small Waves as a year round outlet for children's items.
''By offering toys and specialty items we effectively expand our selling season by taking our core swimwear customers and
offer them select age appropriate toys at prices at or near manufacturers cost all year round,'' remarked Mike Friedland, Vice
President of Breaking Waves, Inc. ''I think in a situation like this we win and the consumer wins, too.'' The expanded website
should be operational sometime in September.
''www.breakingwaves.com, our B2B website has been an important element in the increase in sales over the last few months,''
continued Mr. Friedland. '' The site has assisted our sales force in expanding our base of specialty stores and soon will be
integrated within our state of the art computerized order entry and fulfillment system allowing for pro-active client ordering,
inventory control and shipping. Speed, efficiency and accessibility will help us win more retailers and more importantly keep
those we already have.'' All of our e-commerce websites are powered by Mindspring, Inc. (Nasdaq ''MSPG'') with efficient
and secure e-commerce being handled by Mercantec Shopping Cart, CyberCash, Inc. (Nasdaq ''CYCH''), and card services
provided through Chase Manhattan Bank (NYSE ''CMB'').
SHOPNET.COM is an e-commerce company which maintains a number of diverse websites, sells children's swimwear and
videotapes direct to the consumer. SHOPNET.COM is also a producer of low budget independent motion pictures, through
it's Hollywood Productions, Inc. subsidiary. Hollywood Production's newest feature film, ''Machiavelli Rises'', an off beat
comedy, was recently featured at the Avignon-New York Film Festival. ''Dirty Laundry'', another of Hollywood's feature films,
a romantic comedy starring Tess Harper and funny man Jay Thomas, will soon be released on home video. For additional
information visit our corporate website www.usa-shopnet.com .
SHOPNET.COM, INC's first quarter earnings, ending March 31, 1999, were $.01 fully diluted based on net sales of $2.2
million reflecting an increase of almost 30% more shares as a result of shareholder dividend distribution.
Statements contained in this press release which are not historical facts may be considered forward looking information with
respect to plans, projections, or future performance of SHOPNET.COM or Play Co. Toys as defined under the Private
Securities Litigation Reform Act of 1995. These forward looking statements are subject to risks and uncertainties which could
cause actual results to differ materially from those projected.
NASDAQ SYMBOLS:
Common Stock - SPNT
Warrants - SPNTW
FRANKFURT STOCK EXCHANGE: ZSN
Contact:
DeMonte Associates
Sean Leous
212/473-3700 |
