Go OnLine Networks Corporation Announces Acquisition of Computer Services Firm
BUENA PARK, Calif. (BUSINESS WIRE)--Monday, June 19, 2000--
Go Online Networks Corporation to Acquire $6.8 Million Computer Refurbishing Company Digital West Marketing Inc.
Joseph Naughton, Chairman of Go Online Networks Corporation (OTCBB:GONT), and Andrew Hart, President and C.E.O. of Digital West Marketing Inc., jointly announced today that they have reached a definitive acquisition agreement for Go Online Networks Corp. to acquire 100% of the outstanding stock in Digital West Marketing Inc. Financial terms were not disclosed.
ABOUT DIGITAL WEST MARKETING INC.
Digital West is a privately held computer service firm based in Chatsworth, California, north of Los Angeles. Revenues for 1999 were approximately $6.8 million. The company operates out of a 24,000 square foot facility currently employing in excess of 45 people. The core of Digital West's business is to contract with major retail entities and computer hardware manufacturers to refurbish computer products returned to retail establishments by customers. The products are re-engineered or refurbished to factory specifications by Digital West's factory trained A+ certified technicians. The computer products including hard drives, CD ROMs, monitors, printers, circuit boards, CD writers, DAT drives are then resold into the secondary market and service channels. Digital West is a state-of-the-art, multi-vendor multi-product facility that provides value-added services, logistics services, depot repair, and spare parts distribution for virtually all major PC brands and system components including peripherals. Digital West deals with more than forty manufacturers to ensure an ability to handle any and all customer's requests for programs such as repair, part sales, advance exchanges, cross-ships, emergency parts and other asset management programs. For more information on Digital West Marketing Inc. please visit their web site at www.DigitalWest.com.
Joseph Naughton, Chairman of Go Online Networks commented on the Digital West acquisition, "Andrew Harts' business, Digital West Marketing Inc., is a perfect fit for Go Online Networks. By capitalizing on the "Brick and Mortar" retail sectors' huge need to recapture value from returned products, the refurbishing industry has grown into an industry representing hundreds of millions of dollars in potential revenue. Gaining preferential vendor status from retail giants and the "who's who" of the computer hardware sector allows refurbishing entities to model substantial growth and earnings potential without extensive capital requirements. "I personally have been involved with these issues working for 'Big Box Brick and Mortar' retailers for most of my professional career. Digital West is incredibly well positioned to expand its already solid alliances with both retailers and manufacturers to create a value-added interface with tremendous growth potential. We expect this acquisition to close within 60 days pending customary due diligence."
"We are excited about joining Go Online's family of technology and Internet companies. Tremendous synergies exist between our operation and the Go Online Networks' vision. We anticipate a complete integration of our business strategies and plan to substantially ramp up revenues for the remainder of the year 2000," stated Andrew Hart, President and CEO of Digital West Marketing Inc.
Commenting on the obvious synergies between Go Online Networks Corp. and Digital West, Mike Price, Director of Operations for the Go Online Kiosk Division, added, "In a business tied to ever changing computer and Internet technologies, combining manufacturing, servicing and centralized maintenance of a network of kiosks is an essential aspect to our business organization. With Digital West's expertise in the computer field, we can look to the their team of certified technicians for design, technical support, repair and upgrading capabilities for our kiosk network far more efficiently and cost effectively."
ABOUT GO ONLINE NETWORKS CORPORATION
Go Online Networks Corp. is a Buena Park Internet technology and marketing concern, consisting of core Internet divisions, Go Online Kiosk Division, Shop Go Online, and its Business to Business subsidiary GoOn-line.com.
Shop Go Online Division
Shop Go Online is an e-commerce business, offering a wide variety of consumer products for purchase online. Many products are displayed using state-of-the-art streaming video and audio technology, such as Panoscan and IBM Hot Media, enhancing the shopping experience. www.ShopGoOnline.com
GoOn-line.com B2B Division
Go Online Networks B2B division offers state-of-the-art designs for e-commerce sites for companies, in either business to business (B2B) or business to consumer (B2C) realms, utilizing the latest in technology available on the Web today. www.GoOn-line.com
Go Online Kiosk Division
The Go Online Kiosk Division owns and operates audiovisual Internet Kiosk systems custom-designed to provide consumers access to the Internet from public Locations throughout the United States. The current focus is on obtaining multi-year exclusive site agreements from national hotel franchisees. Consumers can access the Internet by paying with cash or credit card and can surf the World Wide Web or send and receive e-mails. Additional revenues can be obtained by selling screen saver and banner ads.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Expression of future goals and similar expressions reflecting something other than historical fact involve risks and uncertainties. The actual results the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.
CONTACT: Go Online Networks Corporations
Joseph Naughton, 714/736-9888 (Chairman)
Joe@GoOnlineNetworks.com
www.GONTINVESTOR.com (Investor information)
or
Digital West Marketing Inc.
Andrew Hart, 818/718-7500 (CEO and President)
AHart@DigitalWest.com
www.DigitalWest.com
or
PMR and Associates, LLC
Patrick M. Rost, 760/942-0015 (Investor Relations)
PMRandCO@AOL.com
or
Charterbridge Financial Group Inc.
Travis Christ, 619/696-8000 (Financial Relations)
tchrist@charterbridge.net
www.charterbridge.net |
