Thursday July 22, 6:08 am Eastern Time
Company Press Release
Portal TownPagesNet.com Completes Pound-4m Acquisition of WWW.CO.UK
Transaction Combines UK Internet Leaders in Providing Cinema and Locally-Oriented Entertainment Information
ALTON, England--(BUSINESS WIRE)--July 22, 1999-- TownPagesNet.com plc (AMEX: TPN - news) today announced that it has acquired WWW.CO.UK and its affiliated group companies for (pound)4 million (approximately $6 million US) in cash and stock. The transaction will combine the United Kingdom's leading Internet provider of cinema information, Cinemas Online (the trading name WWW.CO.UK), with a leading provider of national and local entertainment and service information, TownPages.
Under the agreement, TownPages has acquired WWW.CO.UK for approximately (pound)2.5 million (approximately $4 million US) in TownPages stock and (pound)1.5 million (approximately $2.4 million US) in cash, with an additional earnout payable within the next two years if WWW.CO.UK meets a series of agreed performance targets.
Andrew Lyndon-Skeggs, Managing Director of TownPages, noted, ''This is an important strategic acquisition for TownPages as it dramatically increases our critical mass of general entertainment information offered through our site. Because of the broad-based popularity of the cinema, we believe this combination will attract a whole new audience to TownPages. On a combined basis, we would be receiving in excess of 7 million hits per month.''
Lyndon-Skeggs added, ''This purchase fits into our web channel strategy and will be an important part of the national and local information that is available on our website (www.TownPages.co.uk) and our network of free access on-line information kiosks.''
Jeffrey Spector, Managing Director of WWW.CO.UK, will be bringing his senior management team with him to TownPages. He is also bringing a successful national salesforce which will enhance TownPages' existing UK sales team and create a presence in the North of England, where none previously existed.
Attracting more than 4.4 million hits in June 1999, WWW.CO.UK is the official supplier of cinema information on the Internet in the United Kingdom. It offers information on over 35 per cent of the UK cinema market and has just signed a contract with Ireland's largest cinema group which represents over 50 per cent of all cinema admissions in that country. WWW.CO.UK was established 18 months ago and has local and national advertisers signed up on either two or three year agreements. An average user session on the site lasts for 7.5 minutes.
About TownPages
TownPagesNet.com plc operates TownPages®, an interactive service providing comprehensive, up-to-date locally focused information about specific towns and cities in the United Kingdom in a graphically pleasing format.
TownPages' website can be found at www.TownPages.co.uk
''Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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Contact:
TownPages, Alton
A. Lyndon-Skeggs, 011 44 01420 5453468
or
Porter Novelli, New York
Jessica Magill, 212/601 8185
or
Countrywide Porter Novelli
Mike Rigby, 011 44 01295 224400 |
