August 02, 1999 07:32
Cyberian Outpost and Tweeter Home Entertainment
Group Announce Joint Venture To Form Internet
Consumer Electronics Retail Store
Tweeter@Outpost.com: An Innovative Integration of Clicks & Mortar
KENT, Conn., Aug. 2 /PRNewswire/ -- Cyberian Outpost Inc. (Nasdaq: COOL),
operator of Outpost.com, a leading global Internet-only retailer of computer
hardware, software and accessories, and Tweeter Home Entertainment Group, Inc.
(Nasdaq: TWTR), a leading specialty retailer with 73 stores specializing in up-scale
audio and video consumer electronics products, today announced the formation of
a 50/50 joint venture to market a broad selection of audio, video and consumer
electronics merchandise over the Internet. The two companies, as exclusive
partners, will jointly form, market and brand a new Internet store called
Tweeter@Outpost.com. The new store will leverage and integrate the core
strengths of both parent companies in its launch as a fully authorized Internet
consumer electronics retail site in the fall of 1999.
Outpost.com and Tweeter will utilize their existing infrastructures to create the
premier Internet site devoted to providing mid- to high-end consumer electronics
merchandise. Outpost.com, already ranked first in Internet customer service by
BizRate, will apply its leading edge Internet technology, Web merchandising
expertise and valuable operational infrastructure. Tweeter brings powerful
relationships with top manufacturers. Its merchandising expertise will be
instrumental in obtaining manufacturer authorization to sell high quality consumer
electronics products over the Internet. Tweeter also has a world-class training
organization, which is directed towards delivering a positive customer experience.
This organization will be involved in training the call center associates that will be
assisting consumers with both pre- and post-sales support. Several of the
customer service associates from Outpost.com have already completed the first
round of Tweeter training. A full-time General Manager will be hired to oversee
Tweeter@Outpost.com.
Darryl Peck, President and CEO of Cyberian Outpost, Inc. stated, "We are truly
excited to have Tweeter as our exclusive partner for consumer electronics. This
innovative relationship expands our position as a premier web merchant and builds
on our solid manufacturer support and customer trust.
"Our new Internet store, Tweeter@Outpost.com, allows us to offer customers a
fantastic selection of the top brands in consumer electronics. Our demographic
profiles and top notch customer service are highly complementary. This joint
venture integrates the strengths of our companies and makes us the ideal home for
consumer electronics on the Web. Additionally, we are pleased that Tweeter has
made a one million dollar equity investment in Cyberian Outpost, Inc.," added
Peck.
"Both Tweeter and Outpost.com are intent on entering the Internet consumer
electronics space with full authorization from the manufacturers," commented Jeff
Stone, President and Chief Operating Officer of Tweeter Home Entertainment. "Our
operational philosophies are very similar in that we strive to combine quality
products with a high level of customer service. Additionally, customers require a
knowledgeable sales force and with Outpost.com, we have found a partner that
shares our vision and can extend our reach of brand name consumer electronics
products to the vast Internet retail market."
Stone went on to say, "Consumer Electronics retail on the Internet is currently
characterized by grey-goods retailers who are corrupting the price/value equation
and are not delivering service. We take our leadership position in Consumer
Electronics retailing seriously as we propose to set some benchmark standards for
other brick and mortar retailers getting onto the Net."
About Tweeter Home Entertainment Group, Inc.
Tweeter Home Entertainment Group, Inc. is a specialty retailer of mid to high-end
audio and video consumer electronics products. The Company operates 73 stores
under the Tweeter etc, Bryn Mawr Stereo & Video, HiFi Buys, Home Entertainment
and DOW Stereo/Video names in the New England, Mid-Atlantic, Southeast,
Texas and Southern California markets, respectively. The Company's stores feature
an extensive selection of home and car audio systems and components, portable
audio equipment, and home video products, including large screen televisions, DVD
players, digital satellite systems, video cassette recorders and camcorders.
Tweeter Home Entertainment Group news and financial releases can be found on
the Company's investor relations website at www.twtr.com. For further information,
please contact Joe McGuire, Chief Financial Officer at 781-830-3314 voice,
781-821-9956 fax, or via email at jmcguire@bmsv.com
About Cyberian Outpost
A leader in global e-commerce since 1995, Cyberian Outpost operates an Internet
only superstore for computer related products from its Web site Outpost.com
(www.outpost.com) 24 hours a day, seven days a week. Outpost.com provides
consumers and small businesses with superior selection, renowned customer
service, quick, easy search capabilities, and product information on over 160,000
competitively priced hardware, software and accessory products. As part of its
TruePrice policy, Cyberian Outpost offers free overnight shipping to all U.S.
customers and provides international consumers with reasonably priced shipping
alternatives. The company's auction site, OutpostAuctions
(www.outpostauctions.com) allows customers to bid on a selection of computer
products.
This release may contain forward-looking statements that are subject to certain
risks and uncertainties, including statements regarding the expected positive
impact of the joint venture on Outpost's business. Such statements are based on
management's current expectations and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements, especially when measured on a
quarterly basis. Outpost cautions investors that there can be no assurance that
actual results or business conditions will not differ materially from those projected
or suggested in such forward-looking statements as a result of various factors,
including, but not limited to, the following: (i) Outpost's ability to successfully
negotiate a definitive joint venture agreement with Tweeter on terms acceptable to
Outpost, (ii) Outpost's and Tweeter's ability to work together to successfully
operate and manage the joint venture, (iii) competition, (iv) uncertainty regarding the
continued growth of the Internet and online commerce, and (v) uncertainty regarding
governmental regulation.
SOURCE Outpost.com
/CONTACT: Janice Simoncelli of Outpost.com, 860-927-2050,
investors@outpost.com; Press: Evan Goetz, Jackie Turner, Andrea Kaimowitz or
Cheryl Olson all of Morgen-Walke Associates, 212-850-5600, for Outpost.com/
/Web site: outpost.com |
