TSIG.com Agrees to Acquire The Affinity Group
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--April 25, 2000-- TeleServices Internet Group Inc. (OTCBB:TSIG - news), known as TSIG.com, today announced that it has entered into a letter of intent to acquire The Affinity Group LLC, an affinity marketing company that specializes in database mining and marketing, in an all-stock transaction valued at above the current market price of TSIG.com common stock. Terms were not disclosed. As previously announced, TSIG.com and The Affinity Group have been collaborating on various affinity marketing programs.
The management of Affinity reported 1999 revenues of $22 million, with a pro forma pre-tax profit of $4 million (unaudited). The Affinity Group projects year 2000 revenues at $30 million, with profits expected to reach $6 million.
``The Affinity Group brings us a high level of expertise in data base mining and marketing, together with the ability to design profitable product offerings and to bring profits to the bottom line,'' observed Robert Gordon, chairman of TSIG.com. ``They have a tremendous track record, with great historical numbers and growth rates. By joining Affinity's talents and expertise with our top-tier corporate and non-profit partners, we now have a marketing powerhouse that has all the elements needed to successfully implement our myCard programs. With the addition of the search engine and portal applications we now provide through General Search, TSIG.com will be positioned to be one of the few publicly traded Internet companies generating significant revenues and profits.''
Added Scott Roix, Affinity's chairman and CEO, ``TSIG.com has fabulous relationships and contracts with Coca-Cola, Lufthansa, Lifetime Learning Systems, 4-H Clubs, UCP and many others. We are confident we can leverage TSIG.com's relationships and customer base into a successful Internet model by implementing myCard programs that will be highly profitable and will also drive millions of customers to TSIG.com's new search engine and portal.''
About The Affinity Group LLC
The Affinity Group LLC, headquartered in St. Petersburg, Florida, is an emerging affinity marketing company that specializes in database mining, product development and sales. Affinity looks to partner with other successful companies in an effort to create synergies, which makes it possible to offer the best products to the most customers at attractive margins for Affinity and its partners. The success of Affinity started with certificate travel and club memberships, and has expanded into affinity programs that serve a growing U.S. and international customer base. Affinity currently markets its products and services in the United States, Europe, Australia, Latin American and Canada.
About TSIG.com
Headquartered in St. Petersburg, Florida, TeleServices Internet Group Inc., known as TSIG.com, has created its myCard programs to benefit both the corporate and non-profit communities, as well as consumers. TSIG.com forms myCard partnership agreements with national corporations and non-profit organizations, and then works with those partners to design revenue-generating programs that attract consumers to their Web sites. The first myCard program was myMusicCard, which enables consumers to purchase CDs and cassettes at the lowest available prices. Similarly TSIG.com's myPhotoCard programs provide low-cost film processing and Kodak Film, and the myPhoneCard programs provide low-cost prepaid long-distance calling card services.
TSIG.com has recently acquired General Search.Com, an Internet portal with one of the most powerful and accurate search engines on the Internet, with access to a database of more than 100 million links. The search engine is family-oriented, with filters that eliminate virtually all adult-oriented content, while still providing the most accurate search results available on the Internet. GeneralSearch has more the 800 Internet-based affiliates, including Amazon.com, Land's End, Office Max and other popular sites. Through General Search, TSIG.com is able to provide its customers free Internet access for life, free e-mail, fax, integrated messaging and other features.
These customized marketing programs provide recurring revenues to TSIG.com and its partners, and help develop strong brand loyalty and awareness within target communities. TSIG.com further enhances its myCard programs by providing customer service and support with its Web-based call center and related services. With non-profits, TSIG.com is engaged in ``cause-related marketing'' and has a ``volunteer sales force'' of millions generating sales and driving traffic to Internet sites for the lowest customer acquisition cost in the business. TSIG.com is the national marketing partner of UCP, the nation's largest non-profit health care organization and leader in the disability field, serving over 1 million people with disabilities a year in the United States. TSIG.com's corporate web site is at www.tsig.com and the myMusicCard web site is at www.mymusiccard.com.
This press release contains ``forward-looking statements'' within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. Actual results could differ materially, as the result of such factors as (1) competition in the markets for the products and services sold by the company, (2) the ability of the company to execute its plans, (3) the availability of financing at favorable terms, and (4) other factors detailed in the company's public filings with the SEC.
Contact:
TSIG.com, St. Petersburg
727/897-4000
Paul Henry, phenry@tsig.com
or
Richard Wheeler, dwheeler@tsig.com |
