Millennium provides details of Lyco Logistics acquisition
Millennium Network Corp MLM
Shares issued 8,180,929 Aug 31 close $0.53
Wed 1 Sept 99 News Release
Mr. Jim Kootnekoff reports
The recent announcement regarding the acquisition of a warehouse and
distribution centre geared towards e-commerce (Lyco Logistics Ltd.) has
resulted in a considerable amount of investor inquiries. Millennium
provides the following background information:
Recent media coverage and discussions surrounding e-commerce companies have
centred on the topic of company profitability as well as the challenges
that are present in cost-effectively delivering products to the end
consumer. It is becoming increasingly easier to establish an e-commerce
Internet site. However, the cost-effective pick, pack and shipping of these
products remains a huge logistical problem. Warehouses in North America
presently focus on shipping pallets or boxes to stores rather than
delivering individual products to consumers. They are simply not set up to
cater to e-commerce companies. As we approach the year 2000, the demand by
Internet vendors for third-party warehousing, shipping and (vendor-owned)
inventory management will be tremendous. Through Lyco Logistics'
40,000-square-foot facility, Millennium will be able to offer this service
to any e-commerce company at a considerable cost savings. While traditional
distribution costs amount to 15 per cent to 18 per cent, Millennium will be
able to reduce these costs to 9 per cent or less, thereby providing much
needed profitability to the vendor. At the same time, the completely
computerized and paperless warehouse and fulfilment facility allows
economies of scale that make this a very profitable business. It gives
Millennium the best of both worlds: better profitability for its Logistics
customers while ensuring profitability for itself. Lyco Logistics is a
profitable company and details of the acquisition as well as financial
projections will be released shortly.
Millennium operates an e-commerce site at www.wowya.com. This site is
presently being expanded to increase user-friendliness and make it more
attractive to prospective vendors as well as to allow Millennium to
increase its customer base via its referral commission system. As an
integrated e-commerce business, Millennium will soon be able to offer an
e-commerce solution, complete with credit card processing and product
fulfilment, to the thousands of businesses that will be entering e-commerce
for the first time. In addition, because of its referral system that allows
customers to earn a referral commission, Millennium can offer these
businesses a captive customer audience that will drive and result in
quality traffic to the site rather than having to rely on advertising and
random hits. In the coming months, Millennium will further strengthen and
expand through acquisitions and strategic alliances the three pillars of
its business: e-commerce solutions at www.wowya.com, product fulfilment as
well as on-line customers.
WARNING: The company relies on litigation protection for "forward-looking"
statements.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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