Thursday March 9, 07:05 AM Eastern time
Company Press Release
THCG Joins With Designer Jewelry On Line to Market Fine Jewelry; THCG to Provide Venture Development and Banking Services; Launch Targeted for Summer 2000
NEW YORK--(BUSINESS WIRE)--March 9, 2000--THCG, Inc. (NASDAQ:THCG) today announced that it has formed a strategic alliance with Designer Jewelry On Line (DJOL) to create a seamless e-commerce solution for fine jewelry retailers and manufacturing companies online. DJOL is an alliance of top quality branded manufacturers and retailers who will be positioned as the providers of choice to the e-commerce jewelry customer. In exchange for fees and a significant equity position in DJOL, THCG will provide venture development and banking services to DJOL including the creation of a detailed business plan, financial models, capitalization programs, management recruiting and assistance in the pursuit of strategic alliances. DJOL expects to launch its web site in the summer of 2000.
An initial founding group of sixteen of the industry's most respected jewelers and manufacturers is expected to invest over 5 million to create and execute the DJOL concept. Prestige jewelers such as Bachendorf's, Diamond Cellar, Fink's Jeweler's, Greve Jewelers, Hamilton Jewelers, Hyde Park Jewelers, Lee Michaels Jewelers, London Jewelers, Lux Bond & Green and Tivol Jewels will be featured on the web site. Some of the founding supplier partners, representing the "gold standard" of jewelry design and manufacturing, include Honora, Lagos, Lazare Kaplan International, M. Fabrikant & Sons, Penny Preville and Scott Kay Platinum.
The site will be designed to eliminate the typical "channel conflict" for fine, branded products while maintaining the level of service and guarantees demanded by high-end jewelry customers. While offering the widest possible range of luxury jewelry, DJOL is also creating a national network of retailers to provide essential store-based support, delivering cost benefits to both the retailers and manufacturers.
Larry W. Smith, President of THCG, Inc., said, "We are creating a very powerful business model that could revolutionize the sale of high-end brand jewelry online. The combination of our resources in venture development and venture banking with DJOL's extensive fine jewelry expertise and network is a compelling example of the way in which THCG can enable traditional brick and mortar companies to migrate to the Internet. Through our e-commerce solution, DJOL's manufacturers and retailers will realize greater profitability through the cost savings that result from more efficiently managed manufacturing operations. Equally important, they will achieve better inventory control throughout the supply chain, improved communications and a national, branded marketing program."
Joel Schecter, President of Honora and a founder of DJOL, added, "DJOL's e-store will have a broad merchandise selection while maintaining a very high level of quality, integrity, value and customer service, guaranteed by our esteemed retailers. The Bricks and Clicks' model is the core of our strategy because with top quality jewelry, the human element assures customers that a human being is available to help them whenever needed."
Tom Tivol, President of Tivol Jewels, concluded, "With this business model and THCG as our partner, advising us on the many finance, operations, marketing, and hiring matters involved in designing a successful Internet sales strategy for our industry, we expect to become the predominant destination site for fine jewelry customers."
About THCG
THCG is a global active Internet incubation firm that provides venture development, venture banking and venture funding products and services. THCG's mission is to build dominant companies by partnering with leading Internet entrepreneurs and traditional brick and mortar companies migrating to the Internet. THCG has partnered with a portfolio of Internet-related companies, including Global Credit Services, Inc. (www.globalcreditservices.com), Globecom Interactive, Inc., IT Utility, Inc. (www.itutility.com), and Test University, Inc. THCG also has equity interests in more than 10 additional Internet-related companies, including ETRAVNET.COM, Inc. (OTC BB: ETVT, www.travnet.com), iBeauty.com (www.ibeauty.com), Interleaf, Inc. (Nasdaq:LEAF, www.interleaf.com), LogNet Systems Inc. (www.lognet.co.il), Passport New Media, Inc. (www.yourownworld.com), TechOnLine, Inc. (www.techonline.com) RealTimeImage Inc. (www.realtimeimage.com), SoftWatch Ltd. (www.softwatch.com), SunShine Media Corporation (www.bikini.com) and webMethods, Inc. (www.webmethods.com). THCG's web site is located at www.thcg.com.
About Designer Jewelry On Line
Designer Jewelry On Line is the first company to define and execute a combined 'Bricks and Clicks' sales and service strategy for the online retailing of branded fine jewelry to quality-conscious and service-conscious consumers. DJOL has initially been capitalized by sixteen prestigious retail and supplier partners located. DJOL'S current retail partners are: Bachendorf's, Diamond Cellar, Fink's Jeweler's, Greve Jewelers, Hamilton Jewelers, Hyde Park Jewelers, Lee Michaels Jewelers, London Jewelers, Lux Bond & Green and Tivol Jewels. DJOL's designer-manufacturers include Honora, Lagos, Lazare Kaplan International, M. Fabrikant & Sons, Penny Preville and Scott Kay Platinum.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. These risks and uncertainties include the Company's entry into new commercial businesses, the risk of obtaining financing, risks associated with startup or early stage enterprises, and other risks described in the Company's Securities and Exchange Commission filings. |
