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MIDDLETOWN, N.J.--(BUSINESS WIRE)--Dec. 10, 1998--
Partnership Provides New Venue to Market and Distribute
Company's Proprietary CD Compilation Albums
Planet Entertainment Corp. (OTC BB: PNEC), announced today that
its recently acquired subsidiary, Northeast One Stop, Inc., (NEOS) has
formed a strategic partnership with Fresh Picks, Inc., a wholesale
distributor of predominately front-line music product to grocery store
music departments. NEOS will provide product fulfillment, distribution
and retail coding of music product to the music departments that Fresh
Picks serves. The partnership will also provide a new venue for the
Company to market and distribute its proprietary CD compilation
albums.
"Fresh Picks is one of the music industry's best wholesale
operations and is pioneering the concept of grocery stores music
departments in the U.S.," commented Ron Nicks, CEO of NEOS. "Music
departments in grocery stores have been a highly successful concept in
Europe for years. We believe that Fresh Picks' instinct to bring this
highly specialized sales niche to the U.S. will prove to be successful
and we are excited to be involved in its early stages."
Fresh Picks operates 85 music departments with four grocery store
chains, primarily in Massachusetts and Virginia. The departments offer
a selection of approximately 800 titles that fit the demographic
profile of the store and are complete with listening stations where
customers can listen to selections before purchasing them. Fresh Picks
has been recognized by the National Association of Recording
Merchandisers (NARM) with the "Small Wholesaler of the Year" award for
1997. Fresh Picks anticipates increasing its distribution outlets by
approximately 250% to over 300 departments over the next 12 - 18
months.
"The strategic partnership developed with Fresh Picks is an
example of the type of synergies that can be created through our
acquisition of NEOS," stated Wallace M. Giakas, Chairman of Planet
Entertainment Corp. "This provides the Company with a unique
opportunity to target a new audience in a convenient retail
atmosphere, which we believe will enhance our wholesale operations and
help drive sales of our compilation CDs."
Planet Entertainment is a diversified entertainment company
specializing in music production and wholesale distribution and
marketing of front-line recorded music and video titles as well as its
proprietary CD compilation albums. The Company, which operates two
wholly owned recording studios and four record labels, is principally
engaged in the acquisition, enhancement, licensing and re-release of
music from its extensive library of over 15,000 original musical
master recordings as well as the production of new artist albums. In
order to provide efficient distribution and marketing for its
products, the Company recently acquired all of the issued and
outstanding common stock of Northeast One Stop, Inc. (NEOS), a
privately held wholesale distribution facility of recorded music and
video products based in Albany, NY. NEOS has access to over 130,000
front-line titles and was named the 1997 Medium Wholesaler of the Year
by the National Association of Record Manufacturers (NARM). Planet
Entertainment plans to operate NEOS for centralized order fulfillment
as well as to market and sell its compilation CDs either directly to
retailers or indirectly over the Internet on its business to business
website, www.planetentertainment.com.
Special Note Regarding Forward-Looking Statements: a number of
statements contained in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in the applicable statements. These risks include but are not
limited to: the Company's vulnerability to rapid change, technical
obsolescence, limited customer base and reliance on relatively a small
number of its customers, the possible impact of competitive products
and pricing, uncertainties in the duration of the life cycle of its
products, manufacturing difficulties, dependence on key personnel,
market acceptance, reliance on a limited number of outside vendors,
potential difficulties, managing growth, the ability to perform on
existing and future agreements, the availability to perform on
existing and future agreements, the availability of financing, and
other risks all, or any of which may have a materially adverse impact
on the company, its business, business prospects, and financial
condition.
--30--de/ny*
CONTACT: Planet Entertainment Corporation
Wallace M. Giakas, Chairman
732/530-8819
or
The MWW Group
Public Relations - Tel: 201/507-9500
Contact: Robert Ferris -- rferris@mww.com
KEYWORD: NEW JERSEY
INDUSTRY KEYWORD: ENTERTAINMENT RETAIL SUPERMARKETS |
