Peacock Financial Sets Exclusive Japanese Distribution With X-Gear Inc.
SAN JACINTO, Calif.--(BUSINESS WIRE)--May 1, 2001--Peacock Financial Corp. (OTCBB:PFCK) today announced that it has executed a letter of intent with X-Gear Inc., a privately held, California-based extreme sports manufacturer, for the exclusive Japanese distribution of X-Gear products through Peacock's recently announced joint venture, Jugular Japan.
A definitive agreement will be finalized shortly.
Robert Braner, interim president and managing director of Peacock, said: "It continues to be our intention to capitalize on the expertise and contacts of our management team to make carefully considered moves into businesses and markets we believe have significant potential for growth and profitability. Wherever possible, we will do so with minimal capital investment and with the intention of rapidly building bottom line revenues and Peacock's market cap.
"We will not take timid steps in a hodgepodge of unrelated ventures, but instead will work to bring together multiple elements in vertically focused arenas, where the synergy and management expertise we can bring to bear will help create lasting value.
"The relationship with X-Gear is such a move. It leverages our Jugular Japan joint venture by building on the pre-existing licensing agreements with Jugular Inc."
Tammy Dunn, managing director of Jugular Japan, added: "Under this new agreement, we gain exclusive Japanese distribution rights for X-Gear, a highly recognized premier line of extreme sports products. X-Gear recently completed construction of a large state-of-the-art skateboard, wakeboard and snowboard factory, and its products are sold through major distributors and retailers throughout the United States.
"They continue to invest heavily in research and development, production and quality assurance, packaging and promotion. They are also active in various media initiatives to help build the recognition and appeal of their products. We believe they are an ideal partner as we move into the Japanese marketplace.
"X-Gear products sold with Jugular branding provide a powerful combination that should add to product appeal and penetration, further leveraging both brands. We are continuing to work with Fujita International, whose representatives recently visited X-Gear's new manufacturing facility as a part of their due diligence. They concur with our appraisal of the potential of this combination."
Dunn added: "The skateboard market alone had gross sales on the order of $1 billion last year, with international sales growing annually. The extreme sports market in Japan represents a huge opportunity. We're excited about the team and partnerships we are building, the branding and product offerings we are putting together, and the revenue potential we see. We look forward to continuing to report on our progress."
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this document that are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. The company is not required to update its forward-looking statements.
CONTACT:
Peacock Financial Corp.
Robert Braner, 909/652-3885
or
Stock Enterprises Inc.
Jim Stock, 702/614-0003 (investor relations)
KEYWORD: CALIFORNIA JAPAN INTERNATIONAL ASIA PACIFIC
BW0283 MAY 01,2001
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