Friday October 30, 10:33 am Eastern Time
Company Press Release
Greg Manning Auctions Acquires Teletrade -- Interphonic Coin, Sports Card, Sports Memorabilia and Diamond Auction Company
Acquisition Provides Technology Enabling Company To Conduct Real Time Auctions Simultaneously Over the Internet and Via Telephone
WEST CALDWELL, NJ--(BUSINESS WIRE)--Oct. 30, 1998-- Greg Manning Auctions, Inc. (NASDAQ-GMAI), one of the largest stamp auction houses in the world, today announced that it has acquired all of the stock of Teletrade, Inc. (http://www.teletrade.com), which conducts live auctions simultaneously over the Internet and via telephone. Teletrade is believed to be the largest interphonic (combined Internet and Telephone Systems) auction house for coins, sports cards, sports memorabilia and diamonds in North America.
In 1997, Teletrade had aggregate sales of approximately $21 million, while GMAI had fiscal 1998 aggregate sales of approximately $22 million. Historically, both Teletrade and GMAI have been profitable.
The agreement calls for GMAI to pay Teletrade shareholders approximately $6 million, of which approximately $4 million will be paid in cash and $1.8 million in GMAI stock. Funding for the purchase was provided by the sale of 600,000 shares of restricted GMAI stock, in equal 200,000 share blocks, to Mr. Greg Manning, Afinsa Bienes Tangibles, SA of Madrid Spain, and Mr. Leon Liebman, as well as from working capital and bank financing. Leon Liebman is one of three equal selling shareholders of Teletrade and has chosen to take primarily GMAI stock as payment for his interest. In addition, Mr. Liebman has purchased for cash the additional shares as noted above.
In commenting on the acquisition, Greg Manning, Chief Executive Officer and Chairman of GMAI, stated, ''The acquisition of Teletrade catapults GMAI into the 21st century, combining the best of the traditional method of live auctioning with state of the art Internet and telephony technology. GMAI will now offer the most comprehensive auctioning services, permitting real time auctions to take place simultaneously over the Internet and via telephone. In addition, we believe that Teletrade's technology makes GMAI the first publicly owned auction company to provide confidential transmission of bidder and seller information over the Internet.''
''In our view, Teletrade is unique among Internet and telephone auction companies because it guarantees its customers proper grading or the purchaser's money is promptly refunded. It collects all payments and ships all goods, thereby assuring both buyers and sellers prompt, reliable settlement. Teletrade and GMAI have decades of auction experience and understand the possible pitfalls of unsupervised Internet auctions. Over twelve years, without fanfare, Teletrade has quietly built and perfected an important niche auction house based on 21st century technology, selling via the Internet and touch-tone telephone while protecting customer confidentiality.''
Mr. Manning also stated, ''Up until now, eBay, Inc. (NASDAQ-eBAY) and OnSale, Inc. (NASDAQ-ONSL) were considered to be the only publicly owned auction firms utilizing the Internet. The acquisition of Teletrade not only provides us with proprietary technology enabling us to conduct live auctions over the Internet, but also allows us to do so simultaneously via touch-tone telephone. The advanced telephony applications have been pioneered by Teletrade since 1986. As a result, GMAI will have the ability to reach 98 percent of the homes in the United States and Canada, as compared to Internet only auctions, which reach a small fraction of potential U.S. and Canadian households.''
''GMAI is now uniquely positioned as a public company to expand Teletrade's product lines, increase its customer base and explore the globalization of this company with multi-lingual platforms. Moreover, through the recent launch of diamond auctions by Teletrade, GMAI will now have the ability to reach out into the international marketplace for expansion. Further research and development expenses are contemplated which will be handled in the ordinary course of business.''
Greg Manning Auctions, Inc. and its wholly owned subsidiaries Ivy and Mader Philatelic Auctions, Inc. and Greg Manning Galleries, Inc. held a total of 18 auctions in calendar 1997, mainly of stamps and sports cards, and are expected to hold a total of 22 auctions in calendar 1998. Teletrade held 309 auctions in calendar 1997 and expects to hold approximately 348 auctions in calendar 1998.
Greg Manning Auctions, Inc. common stock is traded on the NASDAQ SmallCap system under the symbol GMAI, and on the Boston Stock Exchange under the symbol GGM.
Certain statements in this press release that are not historical facts but allude to future operations and/or future events relating to GMAI and Teletrade are forward-looking statements. There are a number of important factors which could cause the actual results of GMAI and Teletrade and the actual future events to differ materially from those indicated in such forward-looking statements. These factors include, but are not limited to, uncertainties relating to the level of activity in auction markets, the maintenance and enhancement of applicable technology, competition, general economic conditions, availability of financing, and other factors identified in GMAI's SEC filings.
This release is available on the KCSA worldwide Website at www.kcsa.com.
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Contact:
GREG MANNING AUCTIONS, INC.
James Smith, Chief Financial Officer
(973) 882-0004
gregmanning.com
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