Netgateway to Acquire Galaxy Enterprises, Inc. - Companies Agree to $50 million Acquisition -
LONG BEACH, Calif., and OREM, Utah, Dec. 13 /PRNewswire/ -- Netgateway, Inc. (Nasdaq: NGWY - news), and Galaxy Enterprises, Inc. (OTC Bulletin Board: GLXY - news), today jointly announced the signing of a binding letter of intent under which Netgateway will acquire Galaxy Enterprises, Inc. Galaxy operates its business through two wholly owned subsidiaries, Galaxy Mall, Inc. and Impact Media, Inc.
Under the terms of the letter of intent, Netgateway will acquire Galaxy Enterprises, Inc. for approximately 5 million shares with a value of approximately $50 million in an all-stock merger. Through the first nine months of 1999 Galaxy Mall and Impact Media reported combined revenues of $14.4 million. Galaxy generated revenue of $11.4 million in 1998, up from $2.5 million in 1997.
''Galaxy's role in the Internet and electronic commerce is clearly aligned with Netgateway's strategy,'' said John J. Poelman, Chairman of Galaxy Enterprises, Inc. ''This transaction enables us to provide a more robust, fully-integrated offering for our customers. For our shareholders it will allow us to move forward with the financial strength and exposure to the financial community that Netgateway enjoys as a Nasdaq National Market company.''
''Galaxy has clearly demonstrated that they have the talent, technology and marketing infrastructure in place to complement Netgateway's rapidly expanding business,'' stated Roy Camblin, CEO, Netgateway. ''Our strength is providing the capability for companies to plug into a fully-scalable electronic commerce platform quickly and cost effectively. Now Galaxy will allow us to more effectively reach, educate and service a wider audience.''
The acquisition is expected to close on or before March 31, 2000 and remains subject to the execution of a definitive merger agreement and satisfaction of conditions customary of a transaction of this nature, including shareholder approval.
About Galaxy Mall, Inc.
Galaxy Mall, Inc. owns and operates Galaxy Mall, Matchsite, and BannerSource. Galaxy Mall (www.galaxymall.com), is one of the Internet's fastest growing and most popular virtual shopping portals. It is home to over 2,800 small and medium-sized businesses. These merchants benefit from Galaxy Mall's more than 14 million monthly hits and its updated marketing materials provided in its merchant's only section of the mall.
Matchsite (www.matchsite.com) is a new, innovative Internet search engine that uniquely queries other major search engines simultaneously, eliminating the need for web surfers to use multiple search engines to mine data. Matchsite was recently awarded the Editor's Choice Award from Netscape.
BannerSource, (www.bannersource.com), is a clearinghouse for web banner advertisements. It currently has access to a network of over 75,000 web sites and markets in excess of 750,000 dynamic impressions daily over the Internet.
About Impact Media, Inc.
Impact Media is an Internet marketing and advertising company that designs, manufactures, and markets multimedia brochure kits and uniquely shaped promotional compact discs. The company's client roster includes a number of significant corporate customers.
About Netgateway
Netgateway, Inc. is an eCommerce services provider that enables companies of any size to extend their business to eCommerce. The Netgateway Internet Commerce Center(TM) is a fully developed, robust and feature-rich eCommerce system that is available for any company to use. The ideal outsourcing solution, the Netgateway ICC(TM) allows clients to ''plug into'' an existing eCommerce platform that is scalable and easily customizable. The Netgateway ICC allows customers to select and pay for only the services they need, as they need them.
The Netgateway ICC hosts applications ranging from simple Internet storefronts to highly complex business-to-business strategies that involve large numbers of transactions, extensive workflow automation and back-end integration to legacy systems, all on the same platform.
Statements made in this news release that relate to future plans, financial results, market growth, projected market patterns, or other projections, events or anticipated performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to, potential competition. More information is available from Netgateway's Investor Relations department and may be obtained by calling or writing. Netgateway (www.netgateway.net) is located at 300 Oceangate, Suite 500, Long Beach, California, 90802.
Netgateway will hold a conference call to answer any questions concerning this release on December 13, 1999 at 8:00 am PST. The call in number is (800) 344-1292, reference Netgateway conference call, Roy Camblin, conference leader.
Contact information: Christopher Hayes of Netgateway, Inc., 562-308-0010, ext. 131, chayes@netgateway.net;
Steven S. Anreder, or Evan Zall, both of Anreder Hirschhorn Silver & Co., 212-532-3232, sanreder@ahscompany.com;
or Daren Baird, Director of Investor Relations of Galaxy Enterprises, Inc., 801-227-0004, daren@galaxymall.com.
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