Entertainment Company Continues Growth with New Contracts
HOUSTON--(BUSINESS WIRE)--Oct. 7, 1999--Entertainment Technologies & Programs Inc. (OTC BB:ETPI) a fully reporting, diversified entertainment-based company today announced that its profitable NiteLife division continues its growth trend with two military base installations worth $200,000, and installation contract renewals worth nearly $1 million over two years. These contracts are in line with NiteLife Entertainment's plans to increase sales to existing clients and increase new installations by 28%, resulting in revenue increases of 46% in fiscal year 2000.
Fort Campbell in Kentucky and Edwards Air Force Base in California awarded the new contracts. This announcement comes on the heels of three new military base installations announced by NiteLife in August, and one year after NiteLife was named "Prime Vendor" for the U.S. Army's Sports USA concept. These new contracts, combined with renewals and the scheduled rate of worldwide Sports USA club installations, position NiteLife to exceed year 2000 growth projections. NiteLife is currently pursuing additional opportunities as part of its market expansion program.
"Each new NiteLife installation contract or renewal is important to ETPI," commented Mick Ryan, President of NiteLife Entertainment. "Although the dollar amount of each contract is nominal, the cash flow generated from NiteLife operations overall is continually growing. Military contracts are always paid on time and in full, thus providing a strong revenue base that represents nearly half of ETPI's total revenues. We have also successfully integrated our sister company, Performance Sound & Light (PS&L) as the equipment sales division for NiteLife installations. Thus, to ETPI each NiteLife contract is worth the sum of the revenues generated by NiteLife and PS&L combined."
"NiteLife Entertainment forms a solid foundation for ETPI," stated CEO, James D. Butcher. "Its cash flow is especially important as we integrate our recently announced funding package, consolidate long-term debt and implement our expansion program. Our growth program carries significantly less risk for investors due to NiteLife's consistent and secure revenue base and the strategic advantage enabled by our exclusive AFNAF contract. In addition, NiteLife is not vulnerable to federal spending cuts aimed at the military since NiteLife capitalizes all equipment installations. These new contracts illustrate the continued strength of NiteLife's business model and positions ETPI for significant increases in revenues and earnings as well as shareholder value."
About NiteLife Entertainment
NiteLife Entertainment provides a wide variety of entertainment programs and services to military base clubs by installing audio and video equipment, including custom-built disc jockey booths, top-of-the-line mixing consoles and several television monitors for music videos and DVD. NiteLife installs and maintains company-owned equipment. Each military base agrees to a minimum number of utilization hours per contract. NiteLife has also been named "Prime Vendor" for the U.S. Army's Sports USA concept, which amounts to an endorsement by U.S. Army Headquarters. When the Army installs a new Sports USA club on one of its bases, NiteLife is contracted to provide its services. The Sports USA partnership opens an entirely new avenue for expansion for NiteLife without overlapping existing installations.
Forward-looking statements in this press release are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued popularity of entertainment facilities, increased levels of entertainment competition, completion of a planned funding package and other risks.
CONTACT:
Entertainment Technologies & Programs Inc., Houston
Fritz Boudreaux, 281/486-6061 |
