GALAVU CLOSES $5.1 MILLION PURCHASE OF ROGERS HOTEL
ENTERTAINMENT DIVISION - TWC
MARKHAM, Ontario, Canada (May 21, 1997) GalaVu Entertainment Inc. (CDN:GENI) and
Rogers Cablesystems Limited today jointly announce that, pursuant to their letter of intent,
GalaVu has now acquired Tele-World Communications (TWC), a division of Rogers
Cablesystems. TWC provides pay-per-view and a range of interactive services to the lodging
industry with approximately 19,000 rooms under contract in Canada.
Of the $5.1 million purchase price, Rogers is receiving $3.1 million in cash and $2 million in
GalaVu common stock.
"We're pleased to be able to complete this arrangement with GalaVu," said Ted Rogers, Acting
President and CEO, Rogers Cablesystems Limited. "Our new relationship gives us the best
possible solution- our cable services will continue to be offered to a large base of rooms while the
pay-per-view and interactive services will be managed by an expert, in the in-room entertainment
industry."
"We are delighted to be able to finalize this deal with Rogers," added Paul Nielsen, GalaVu
President and CEO. "This significant increase to our installed room base will have an immediate
positive impact on cash flow and give us a solid foundation from which to pursue our aggressive
growth plans. We also welcome Rogers as a business partner and a major shareholder. This
transaction concludes an exciting two week period, during which the Company has received
financing commitments for $25.75 million of new working capital."
Rogers Cablesystems Limited, Canada's largest cable operator, provides entertainment,
information and communications services to approximately 2.2 million customers in Ontario and
British Columbia. Its hybrid fiber-coaxial network is ideally suited for delivering interactive
products and services that require significant bandwidth. The company also owns and operates
over 170 Rogers Video stores.
GalaVu Entertainment Inc. provides leading-edge entertainment and information services to the
global hospitality industry, with a strategic market focus on the unserved small and medium-sized
property segment. Utilizing proprietary technology, GalaVu's interactive system provides a wide
range of affordable, in-room entertainment packages. Marketed to guests under the
'Round-the-Clock Entertainment brand, GalaVu's suite of products includes premium television
programming, live sporting events, Hollywood movies on demand, video games and other
information and entertainment services.
For more information regarding GalaVu Entertainment Inc., please contact Investor Relations at
Frankopan & Co. @ 905-814-0030. For media relations please contact Paul Pivato at
905-476-1727. GalaVu shares are available for quotation or trading on the Canadian Dealing
Network under the symbol "GENI." There are 11,988,575 shares issued and outstanding.
For information regarding Rogers Cablesystems Limited please contact Joan Simkins at
416-446-6697. |
