Wednesday November 18, 2:08 pm Eastern Time
Company Press Release
SOURCE: Teleservices International Group, Inc.
Teleservices International Group Announces $2.5 Million of $10 Million Private Financing for Music CD Marketing Initiative
ST. PETERSBURG, Fla., Nov. 18 /PRNewswire/ -- TeleServices International Group Inc. (OTC Bulletin Board: TSIG - news), a fully integrated provider of outsourced teleservices and music CDs through the Internet, announced today that it has completed the first $2.5 million of a planned $10 million private placement of convertible debentures through Grady, Hatch & Company, a New York based investment firm. These funds are intended to be used primarily for a marketing campaign that is being launched by TSIG subsidiary Compact Connection, Inc. (CCI), a retailer of compact discs.
TSIG has recently completed a $2 million technology upgrade at its call center operation, which now has the full functionality required to handle the requirements of large national accounts. In addition, TSIG has fully integrated its call center operation with CCI's Internet retail music website. As a result of these upgrades, TSIG is positioned to become a leading-edge teleservice provider, with the ability to link Internet e-commerce with its state-of-the-art call center.
The financing will enable TSIG to promote CCI's unique MusicCard concept, recently acquired from DP Enterprises which reported revenues and profits of approximately $11 million and $1 million from its MusicCard business in 1997 (unaudited). CCI is the only Internet based retailer that directly links business being conducted on its discount music website, compactconnection.com, with personalized one-on-one service through TSIG call center representatives. Additionally, Compact Connection's private label MusicCards provide its strategic partners a promotional vehicle through which they can derive direct financial benefit from the sale of each discount MusicCard. Card holders are able to buy virtually any CD or cassette, including new releases, at ''rock bottom'' prices.
Compact Connection's new marketing and advertising campaign promotes the MusicCard, using a combination of consumer and trade media, banner advertising on the Internet, television, and innovative promotions implemented through its strategic MusicCard partners. CCI's print campaign includes ads in Rolling Stone and Stereo Review magazines.
Compact Connection has entered into a strategic partnership with the National Music Foundation, a leading charitable organization in the music industry dedicated to preserving American Music and the people who bring it to us. CCI has introduced a private label National Music Foundation MusicCard and is donating a portion of every MusicCard sale to the Foundation, its official corporate charity, which supports education outreach, a planned residence for retired and active musicians, archives, a museum, live concerts, and a performance center.
CCI is well positioned within the $35 billion global music market and $71 million global online music market that includes CDNow (Nasdaq: CDNW - news), K-Tel (Nasdaq: KTEL - news), and Amazon.com (Nasdaq: AMZN - news).
Robert P. Gordon, Chairman and CEO of TeleServices International remarks, ''Our aggressive new marketing and advertising campaign support both TSIG and CCI, and we are proud to have successfully integrated CCI's new website with TSIG's call center. There is nothing like it in today's marketplace.''
TeleServices International Group Inc., is a provider of fully integrated global teleservices to companies that are in the business of selling products and services through toll-free numbers and the Internet. Visit TSIG's website at stockprofiles.com.
This press release contains ''forward-looking statements'' within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. Actual results could differ materially, as the result of such factors as competition in the markets for outsourced teleservices and for retail compact discs, the availability of financing at favorable terms, and other factors detailed in the Company's public filings with the SEC.
SOURCE: Teleservices International Group, Inc.
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