MDTV Signs E-Commerce Distribution Agreement With Recoton
February 8, 2000 7:03 AM EST
RICHMOND, British Columbia--(BUSINESS WIRE)--Feb. 8, 2000-- Sheldon Nelson, chairman, reports that MDU Communications International Inc. (OTCBB: MDTV) ("MDTV" or the "company") has developed a non-exclusive distribution alliance for the marketing of selected products on MDTV's e-commerce Web sites with Recoton Corp. (Nasdaq: RCOT), a global leader in the development, manufacturing and marketing of consumer electronic accessories and audio products.
The alliance with Recoton will allow MDTV to offer to its subscribers some of the world's most recognized product brand names in audio, video and accessories, in addition to MDTV's entertainment and telecommunications services. Some of the names becoming available to MDTV include: Advent(R) Wireless, Recoton(R) accessories, AR(R)/Acoustical Research(R) and Jensen(R).
According to Nelson, "As we deploy our digital television and high speed broadband Internet services to MDTV's growing list of properties, we will offer each property a customized Web site through which MDTV subscribers will access the Internet.
"MDTV will feature on these property Web sites, advertising and links to other sites, including a site that offers a full range of Recoton Corp. branded products which are commonly used during and following the installation of MDTV services in the subscriber's suite."
Joseph Strang, vice president of sales and marketing said: "This is an incredible opportunity for both MDTV and its subscribers. Our subscribers will be able to access all these products from the comfort of their home and purchase items through our high-speed Internet system or from our direct sales personnel. MDTV will realize revenue from the sale and promotion of Recoton products." Strang also said, "This is a big win for all parties involved."
The company expects this opportunity to add significantly to the front-end revenue derived from each additional subscriber. Gary Monaghan, president, explained: "As our e-commerce portal develops, we will be able to incorporate this supply arrangement into it, facilitating revenue in a targeted delivery solution available 24 hours a day, 7 days a week." The company is currently pursuing other e-commerce opportunities.
About MDTV
MDU Communications International is the national master system operator for Star Choice Television, one of only two licensed providers of direct-to-home satellite broadcasting services in Canada. MDTV provides digital satellite television and high-speed (broadband) Internet access to the multi-dwelling unit (MDU) market place in Canada with expected immediate expansion into the United States and Asia, along with new services in monitored security services and telephony.
MDTV currently serves approximately 14,000 subscribers in 150 properties and has an additional 300 buildings with signed letters of intent or access agreements, which could increase the subscriber base to more than 50,000 in the next 12-18 months.
The company's filings, including current financial reports, can be accessed through the EDGAR database at www.sec.gov. For additional information please see www.mduc.com or contact Investor Relations.
Corporate Headquarters: 108 - 11951 Hammersmith Way Richmond, BC, Canada, V7A 5H9 www.mduc.com CUSIP: 582 828 109
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements relating to future events or the company's future financial performance that involve risks and uncertainties. These forward- looking statements are only predictions and are not guarantees of future performance. Actual results could differ materially from those anticipated in these statements based upon a number of factors, including the company's potential inability to deploy its services in Canada and the United States due to unforeseen future changes in technology, government regulation and consumer demand for its services. Other potential risks are those identified in the company's SEC filing.
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