PRESS RELEASE HIPI, February 28, 2000
FOR IMMEDIATE RELEASE February 28, 2000
HIP INTERACTIVE TO ACQUIRE ELECPLAY.COM PRODUCTIONS INC.: ORCA BAY TO ACQUIRE MINORITY INTEREST IN HIP SUBSIDIARY
Move advances Hip?s vision of vertically integrated e-commerce operations
Hip Interactive Corp. (CDN:HIPI), a premier Canadian ?clicks and bricks? e-commerce company that specializes in selling PC and video games, today announced it has signed a letter of intent to acquire all the issued and outstanding shares of Elecplay.com Productions Inc. (Elecplay), an arm?s length party. Elecplay produces television, radio and Internet programs about video games and the video game industry. In a key part of the arrangement, Orca Bay Capital Corp., Elecplay?s controlling shareholder, will acquire a minority interest in Operational Excellence Inc. (Operex), an operating subsidiary of Hip Interactive. Orca Bay will also be granted a member seat on Operex?s Board of Directors. The transaction is subject to the execution of a definitive purchase agreement, which includes customary due diligence, and the approval of regulatory authorities having jurisdiction. Assuming all conditions are met, the deal is expected to close by March 31, 2000.
?We?re extremely excited about this latest acquisition,? says Morey Chaplick, Hip Interactive, CEO. ?Our objective is to become North America?s leading online and real-world provider of video games. Our arrangement with Elecplay is the latest step in our aggressive growth strategy and our commitment to creating shareholder value.?
The deal with Elecplay complements Hip?s overall ?integrated retail? strategy. The transaction should increase traffic to all of Hip?s web sites, generating incremental revenues for its e-tail operations. Hip also owns its own procurement and fulfillment facilities servicing its e-tail and retail operations, further maximizing the earnings within the Hip group of companies.
Growth through integration
?We plan on using the Electric Playground television show and the Elecplay websites as part of our integrated marketing strategy,? explains Mr. Chaplick. ?These programs will allow us to drive traffic to our existing web sites such as Gamesmania.com, enhancing its value as an advertising medium, and Microplay.com, generating incremental sales of video games. The Elecplay programs provide an excellent medium through which we will promote our Microplay stores located throughout Canada and the United States. This is a high-potential, high-value advancement for Hip Interactive.?
Elecplay develops and produces television programming for worldwide distribution. In addition, it creates websites and new Internet-based multi-media technologies. Elecplay produces Electric Playground, a half-hour television program that airs across Canada. The TV show is complemented by the websites www.elecplay.com, www.epontv.com and www.epradio.com. By reformatting the television show for the Internet, Elecplay has created a successful international brand for multi-media content that concentrates on the video game and PC game industry.
Elecplay has also completed the pilot episode of a new television series, Entertainment Tomorrow. The weekly half-hour newsmagazine show will profile the future of entertainment and will be supported by an online destination, www.entom.com.
Creating shareholder value
The closing of transaction is conditional upon, among other things, Orca Bay acquiring between 16.7 and 49.9 per cent interest in Operex. Operex is a leading business-to-business provider of Internet and e-commerce solutions and services.
?We?re very pleased that Orca Bay has agreed to partner with us in running one of our subsidiaries, Operex,? concludes Mr. Chaplick. ?Their commitment to the Company fully demonstrates the value and potential of Operex. ?This is a great deal for Hip because it propels our overall business strategy and we?re increasing value for our shareholders at the same time.?
Hip Interactive is a fully integrated name brand e-commerce company selling PC and video games. By recently consolidating several PC software and video game companies, Hip has created a highly efficient and effective ?clicks and bricks? business that compresses and vertically integrates the e-commerce supply chain into one cohesive operating organization. Hip trades on the Canadian Dealing Network under the symbol ?HIPI? and has 32,795,783 common shares presently issued and outstanding.
For media inquiries, please contact Michael Shipticki at Strategic Objectives,
PHONE: (416) 366-7735; FAX: (416) 366-2166; or
EMAIL: mshipticki@strategic-objectives.com.
For investor relations, please contact Michael Haines at Hip Interactive Corp.,
PHONE: (416) 249-7555 ext. 225; FAX: (416) 249-9855; or
EMAIL: michael@hipinteractive.com. |
