NEWS
Tuesday January 11, 8:09 am Eastern Time
Company Press Release
Synergy Brands Announces Internet Incubator Strategy
Sybr.com, Inc. Subsidiary to Focus on Business to Business, Internet Infrastructure & Business to Consumer Sectors
SYOSSET, N.Y.--(BUSINESS WIRE)--Jan. 11, 2000-- Synergy Brands, Inc. (Nasdaq: SYBR - news) today announced a new Internet business strategy aimed at developing e-commerce opportunities for the company in three related sectors:
-- Business to Consumer (B2C)
-- Business to Business (B2B)
-- Internet Infrastructure
Henry Platek, President of Synergy Brands, said that the company, through its Sybr.com, Inc. subsidiary, will focus the company's resources on creating a diversified network of Internet companies that would be attractive IPO candidates.
The company launched two subsidiaries in early 1999, BeautyBuys.com, Inc., and Netcigar.com, Inc., each of which have successful B2C operations. BeautyBuys.com, Inc. has already started to develop a B2B platform for its category of products and hopes to have it operational within six months. Netcigar.com, Inc. will commence the development of a B2B platform in the first quarter of 2000. The distribution expertise of each entity's management and the facilities that they currently operate, also create an opportunity to offer order fulfillment services to other e-commerce ventures. Forrester Research estimates that nearly $1 trillion of B2B e-commerce will be conducted by 2002.
New B2B, B2C ventures and Internet infrastructure strategy will be developed within the framework of Sybr.com, Inc.
According to Platek, ``There are several areas in the B2C sector that the company believes are underserved. Sybr.com's initial focus will be on specialty foods, jewelry, leather goods and gifts for the home.' Some of the opportunities under consideration may be integrated into either BeautyBuys.com, Inc. or Netcigar.com, Inc., he added. Forrester Research estimates that approximately $100 billion of B2C e-commerce will be conducted in 2002.
``Internet infrastructure is the backbone of any successful e-commerce venture,' said Platek. ``This area will experience the most explosive growth opportunities in the Internet economy, and we plan to participate in the projected revenue and profits that will be achieved in this business segment.'
Sybr.com plans to enter into the Internet infrastructure sector through the acquisition of an e-business integrator. Such firms provide integrated e-business strategy, design and technology implementation services, as well as marketing communications programs that use advanced technology and new media. By entering this sector, Sybr.com would be able to develop end-to-end electronic commerce solutions that improve communications and commerce between businesses and consumers, as well as among businesses and their trading partners. IBM estimates that the e-business market opportunity for service companies will grow to more than $250 billion by 2003. Companies in this Internet sector experience gross profits in excess of 50%.
Sybr.com plans to accelerate growth by servicing its future B2B and B2C development projects and possibly through further acquisitions. Existing companies in this Internet sector include Razorfish (Nasdaq: RAZF - news), USWeb (Nasdaq: USWB - news), Agency.com (Nasdaq: ACOM - news) and AppNet (Nasdaq: APNT - news). Many of the companies in this sector are trading at multiples in excess of 20 times year 2000 sales.
Synergy Brands recently announced a partnership with Sinclair Broadcast Group, Inc. (Nasdaq: SBGI - news) in which Sinclair is providing approximately $69.4 million in television and radio airtime, media services and cash in exchange for a 50% voting interest in BeautyBuys.com, Inc. Sinclair also holds a 16.5% interest in Synergy Brands, Inc. and recently acquired an 80% stake in e-business integrator, NetFanatics, Inc. This provides the companies with direct access to an internal technology and design team.
Forward-Looking Statements
The matters discussed in this press release include forward-looking statements regarding, among other things, future operating results. In addition, when used in this press release, the words ``intends to,' ``believes,' ``anticipates,' ``expects' and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.
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Contact:
Martin E. Janis & Company Public Relations, Chicago
Hal Schweig, 312/943-1100 |
