Here's the news release
The Millennium Network Corporation
ASE Stock Symbol: MLM
Suite #310, 525 - 28th Street SE, Calgary, Alberta T2A 6W9
Phone: (403) 207-7970 Fax (403) 235-6595 September 13, 1999
NEWS RELEASE - Release Date: immediate
Millennium signs $3.75 Million Purchase Agreement with Lyco
Logistics.
The Millennium Network Corporation is pleased to announce
that it has finalized the contract to purchase all the assets
and business operations of Lyco Logistics Ltd. of Langley, BC.
This all cash transaction is expected to close on or before
October 29,1999 and is subject to financing and receipt of all
regulatory approvals.
Millennium will create a wholly owned subsidiary under the
Business Corporation Act of Ontario which will acquire the
assets, warehouse leases as well as the logistics business.
This new 100% owned subsidiary will continue and carry on
business under the Lyco Logistics name. We are pleased that
the present management of Lyco Logistics will remain with the
new company for the next two years to provide continuity
A product warehousing and fulfillment contract has also been
signed with Lyco's largest customer, ensuring minimum fee
revenue of $2.7 million to Lyco over the next three years.
As a private company, Lyco Logistics Ltd. has reported logistics
fee income of $1.33 million (unaudited) for fiscal year ending
August 1999 with net pre-tax profit of $387,000 (unaudited).
The 40,000 plus square foot, fully automated warehousing
facility, complete with 8 rotating product carousels that are
ideally suited for e-commerce related product fulfillment, is
presently at 44% capacity. With continued business growth Lyco
can more than double its fee income without additional capital
expenditures. This allows over 60% of additional fee income to
be recognized as net profit.
Management prepared projections for the calendar year 2000 amount
to $2.4 million with net pre-tax profit (EBITDA) of $980,000.
Based on these projections Lyco's contribution to Millennium in
the year 2000 will be $0.06 cents per share, fully diluted.
For more information about Lyco Logistics' operation, visit
www.lycologistics.com
For more information on Millennium, visit www.wowya.com
The Millennium Network Corporation is an integrated e-commerce
company which owns and operates an on-line shopping site at
wowya.com providing consumers the opportunity to shop for
products and services as well as profit from the company's unique
referral commission program.
This news release contains certain
forward-looking information and actual results may differ
materially. The risks, uncertainties and other factors that could
influence actual results are described in documents filed with
regulatory authorities.
For more information:
Jim Kootnekoff, Manager Investor Relations
Phone: (604) 649-9399 or toll-free 1-877-387-5526
Fax: (403) 235-6595
E-mail: investor@wowya.com
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein
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