Tuesday April 25, 7:32 am Eastern Time
Company Press Release
JV Web Acquires Sweepstakes Media Assets
HOUSTON--(BUSINESS WIRE)--April 25, 2000--JVWeb, Inc. (OTCBB:JVWB - news, JVWBW - news) a leading Internet strategy company, announced today that they have acquired the majority interest in a suite of sweepstakes entertainment and information related media products from a private party. The venture also includes, as the media partner, NewsUSA, www.newsusa.com, an ``information placement'' company. The products are designed to provide forums for discussion and discovery within the sweepstakes community in an entertaining environment. The terms of the transaction involve the issuance of up to 1,500,000 shares of JVWeb common stock, subject to certain performance criteria, and the seller retains a one-third interest in the on-going business.
The key components of the deal are as follows: A radio talk-show format called The National Sweepstakes Show, to be broadcast as a vignette over radio station networks, a national monthly newspaper supplement to be called Sweepstakes News, and World Wide Web domain names connected by a common branding theme, including: www.nationalsweepstakesshow.com, www.sweepstakesnews.com, among others.
The National Show previously appeared on over 132 radio stations and Sweepstakes News has had a circulation to over 1.2 million homes. The radio show and newspaper insert are intended to provide viewers with information about how to enter for free many of the sweepstakes promotions initiated by various sponsors. It is estimated that about 500 new sweepstakes commence each month in the U.S. each year. There will be a website where viewers can enter all of these sweepstakes for free without the cost of postage.
The acquired assets also include ownership of the book, History of Sweepstakes, and related distribution agreements with Ingram Books and Baker and Taylor, distributors of the book to retail stores and internet booksellers since 1994 at a retail price of $9.95. JVWeb intends to leverage the book as value-add premium item to attract visitors to The National Sweepstakes Show and the websites.
These sweepstakes media assets are expected to significantly enhance the potential reach of the family of sites and ventures that JVWeb is involved in, such as: www.linksxpress.com, an e-commerce shopping portal, Icrosspointe, Inc., a Christian community on the web, www.ihomeline.com, a home remodeling website and radio program, as well as the European strategic alliances established to provide a global reach.
Greg J. Micek, CEO of JVWeb stated, ``We are excited about the opportunity to bring our Internet expertise and experience into the sweepstakes entertainment arena. The relationship with NewsUSA will help bring immediate, powerful exposure to over 10,000 newspapers and over 6,600 radio stations nationwide. We will be able to reach the sweepstakes hobbyist with news and information in so many ways, as well as put them in touch with others who share their interest.'' ``The addition of sweepstakes components and our joint venture with NewsUSA, complements our other sites and strategic alliance partners, such as linksxpress, Icrosspointe, L&H and 2Cs by drawing on a popular phenomenon, we believe revenue generation will heat up for our alliances throughout the globe and afford us with the globalization of our sweepstakes campaign and strengthens our foot hold in Europe.
Rick Smith, President of NewsUSA added, ``Our existing relationships with newspapers and radio will allow us to maximize exposure of the sweepstakes products. We are excited about the future prospects that could develop from this deal, both in the sweepstakes community and with JVWeb in general.''
``The acquisition and simultaneous launch of the National Sweepstakes Show and Sweepstakes News in print, radio, and on the internet is a key step in our strategy to build a portfolio of internet content sites. We believe that with the advent of broadband access and set top boxes for internet access there will be a shortage of original content. The numerous national sweepstakes programs that exist today are sponsored by major consumer product companies with substantial marketing and advertising budgets. These budgets are not subject to the whims of e-commerce. By providing readers, listeners, and on-line participants with free access to information on how to ''enter now for free`` via the internet, we will be able to build a database of millions of consumers and their spending preferences. This information will have a very substantial value to advertisers who sponsor or are thinking of sponsoring sweepstakes promotions, which are a proven method to increase sales,'' Mr. Micek added.
About JVWeb, Inc.
JVWeb, Inc. pursues electronic commerce opportunities over the Internet. The Company's objective is to build strategic Internet services for two primary uses: 1) to offer products, services and advertising through joint ventures with established businesses and 2) to offer its services on a fee basis for clients. JVWeb provides the technical, web marketing and Internet business expertise while the established businesses provide the products and services offered and the related business acumen. For more information concerning JVWEB, please visit the Company's website at www.jvweb.com.
About NewsUSA
NewsUSA blends elements of public relations, advertising and promotion with the accepted forms of traditional journalism. The Company creates and distributes ready-to-use print, Internet features and radio scripts to a nationwide list of newspapers, radio stations and Web sites for their unlimited use. They provide a highly efficient media placement effort that is impossible to achieve with any other form of marketing, advertising or PR. For more information concerning NewsUSA, please visit the Company's website at www.newsusa.com.
SAFE HARBOR STATEMENT
Safe Harbor Act Notice: Certain matters discussed in this news release are forward-looking statements as it is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements are subject to a number of known and unknown risks and uncertainties, including, but not limited to, business-to-business opportunities on the Internet, the timeliness of Internet development activities, as well as availability of human and financial resources which may cause actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of JVWeb.
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Contact:
Equity Communications, New York
Robert Schechter, 212/499-6809
President |
