biz.yahoo.com
Friday September 11, 10:33 am Eastern Time
Company Press Release
Enhanced Services Announces
Zulu-Media Audited Results
LOS ANGELES--(BUSINESS WIRE)--Sept. 11, 1998--Enhanced Services Company, Inc.
(Nasdaq Small Cap: ESVS - news), who reported yesterday that it had completed the acquisition of
the assets of Zulu-tek, Inc., in a transaction valued at $30 million in convertible and redeemable
preferred shares of ESVS, today also announced that it was releasing audited financials for
Zulu-Media, Inc (formerly SoftBank Interactive Marketing, Inc., or ''SIM'') for the twelve months
ended December 31, 1997 and would file the complete financial statements on Form 8-K with the
Securities and Exchange Commission.
SIM's accountants indicated that the audit had taken several months to complete due to the need to
understand the historical transactions at the company since its inception in 1996. SIM incurred write
downs and losses totaling over $27.0 million on gross revenues of $32.8 million and net revenues of
$6.37 million for the year. The deficit resulted primarily from the decision to write off over $9.50
million in good will, ammortization, and to fully reflect the liabilities incurred by SIM during the
period.
Enhanced Services said that it believes that with the newly acquired assets from Zulu-tek, the
Company can achieve monthly sales of $2.0 million by the end of 1998. ''The majority of the SIM
restructuring and re-tooling took place in the first half of 1998. In the past, SIM had pursued
non-productive business models. We believe that the Zulu-tek team has streamlined operations and
developed a focus and strategy that can lead to a profitable operations strategy. Zulu-tek has tried to
learn from SIM's mistakes, and has carefully reviewed the company's focus as compared to its peers
and competitors, including Doubleclick, 24/7 and others. By integrating the Zulu-Media sales and
marketing structure with the advanced technology obtained from Echo Media, we are now well
positioned to provide the broad based Internet solutions we are assembling.''
The combination of Enhanced Services and Zulu-tek, and their anticipated acquisitions, represent the
convergence under one umbrella of diverse services focused specifically on the Internet as a
communications and transaction medium creating a new specialty in the technology arena. The
combined enterprise believes it can attain a unique, forerunning position as it answers the full range of
business demands that result from a skyrocketing commercial reliance on the Internet. Forward
looking statements in this release concerning trends or anticipated operating results are made
pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are not guarantees of future performance and are subject to risks and
uncertainties related to the Company's operations. These risks and uncertainties include, but are not
limited to, competitive factors (including the possibility of increased competition or technological
development, competitors and price pressures); legal factors (such as limited protection of the
Company's proprietary technology and changes in government regulation); and the Company's
dependence on key personnel and significant customers. |
