Friday October 29, 7:58 am Eastern Time
Company Press Release
Video City and West Coast Video Combine E-Commerce Forces
TORRANCE, Calif.--(BUSINESS WIRE)--Oct. 29, 1999--In anticipation of the merger of Video City, Inc. (OTC BB: VDCT) and West Coast Entertainment Corporation (OTC BB: WCEC), Robert Y. Lee, Chairman and Chief Executive Officer of Video City, announced today that all Video City website customers (http://www.videocity.com) wishing to purchase movies online will be automatically linked to West Coast Video's website (http://westcoastvideo.com)
``By combining our resources in this matter, we will be able to offer tremendous benefits to our on-line shoppers,' said Lee. ``We believe that the future of video retailing, whether in VHS cassette or DVD format, will lie in a 'brick and click' environment -- a strong Internet presence alongside existing traditional retail locations,' added Lee.
Video City has signed a definitive merger agreement with West Coast Entertainment. This acquisition will make Video City the fifth largest video specialty retailer in the U.S. The completion of the merger is subject to certain conditions including the obtaining of financing, stockholder approval and certain regulatory and other third party approvals.
``The continuing development of our e-commerce capabilities reflects our customers' willingness to shop across differing channels of distribution. This, coupled with our rapidly expanding customer and storefront base, will allow extensive cross-marketing of our products, as well as the development of future service capabilities for our customers,' added Richard Gibson, President and Chief Operating Officer of Video City.
``We are very excited to be combining forces with Video City,' said Joe Buesgen, Vice President of E-Commerce of West Coast Entertainment. ``This alliance will provide significant tangible benefits, not only to the millions of combined customers of West Coast and Video City, but to both of our companies as well. By combining forces, we can begin to execute our shared vision of delivering a better way for customers to buy movies online.'
Upon completion of its merger with West Coast Entertainment, Video City will own 320 stores and will have an additional 107 franchise outlets. It has grown from 18 stores in the past year and a half and is one of the nation's fastest-growing entertainment companies.
West Coast Entertainment Corporation owns, operates and franchises the West Coast Video© chain of video specialty retail stores, and is one of the largest video retail chains in North America. WestCoastVideo.com, the company's e-commerce website, is located at westcoastvideo.com and includes such strategic partners as Lycos, Inc. (NASDAQ: LCOS - news), Andromedia (http://www.andromedia.com/), American Cinematographer magazine and FamilyWonder.com (http://www.familywonder.com/).
This release contains forward-looking statements within the meaning of the ``safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, such as statements of the Company's plans, activities, expectations and intentions, that involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the ability to make future acquisitions; the demand for video tapes, both rental and sales, which may be affected by seasonal factors, weather, the level of home viewing; competition from other retailers; the Companys' ability to manage and staff its growth; and other factors disclosed under the caption ``Special Considerations' in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 1999.
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Contact:
Martin E. Janis & Company, Inc., Chicago
Investors: Jim Janis
800/771-7235
Media: Bev Jedynak
312/943-1100 |
