GMAI. Big short position . This one will fly. Good news out today.
Greg Manning Auctions, Inc. Forms GMAI-ASIA.COM Subsidiary With Chinese Partners; New Unit to Focus on the Sale of Collectibles in Asia; To Open Beijing Office
WEST CALDWELL, N.J.--(BUSINESS WIRE)--March 11 ,1999--Greg Manning Auctions, Inc. (NASDAQ - GMAI) announced today that GMAI has formed a new subsidiary, GMAI-ASIA.COM, to conduct Internet sales in Asia, and particularly in China. The new company will sell many of the collectible products that GMAI has handled for over 30 years, over the Internet.
The subsidiary was formed with partners in China, including Sherry Liu, head of China Investment Banking for Credit Lyonnais Securities (Asia) Ltd. Ms. Liu will be a director of GMAI-ASIA.COM and one of its investors. GMAI said the subsidiary will open an office in Beijing and is in the process of hiring several key management personnel. It will also open additional offices in Shanghai and Hong Kong, to facilitate the new venture.
GMAI-ASIA.COM will establish a multi-lingual web site in English, simple and complex Chinese. The site will include a retail venue, auction site and an on-line collectibles exchange featuring postage stamps. It is anticipated that the GMAI-ASIA.COM website will become active in approximately six months.
Commenting on the formation of the new e-commerce company, Greg Manning, President and Chief Executive Officer, said, "The formation of GMAI-ASIA.COM represents the first phase of GMAI's global expansion; the second scheduled phase will include Europe."
He continued, "Over the past ten years, stamps have increasingly moved towards becoming a medium of investment in China and stands are often set up at central markets in cities throughout the country to facilitate the buying and selling of modern stamp issues of the People's Republic of China. While attending a five-day stamp show in Hong Kong two years ago, I witnessed a participation never seen in the U.S., over 500,000 attendees with the average show goer under 30 years of age. Harnessing that buying and selling power will provide a huge opportunity for GMAI-ASIA.COM. We are excited over the opportunity to work with some of the leading business and financial people in penetrating this market of over one billion people."
Ms. Liu stated, "Use of the Internet is expected to develop much faster in Asia than it has in the United States over the next 3 to 5 years. Utilizing the unique Internet/telephony technology pioneered by Greg Manning Auctions, as well as the Company's excellent reputation and outstanding worldwide contacts, GMAI-ASIA.COM intends to create a centralized auction and retail trading venue for stamps, movie posters, fine art and other collectibles. Through GMAI's Internet/telephony technology, millions of Asian residents will be able to take advantage of our offerings. As Internet use penetrates Asia, GMAI-ASIA.COM will be positioned at the center of a very lucrative auction and retail trading industry."
The official Chinese government 1997 statistics show 19,550,000 active stamp collectors in China, of which 3,600,000 are members of the National Philatelic Association. This organization is comparable to the American Philatelic Society, which has approximately 50,000 members. The philatelic section of the State Postal Bureau recorded sales of approximately $760,000,000 (US) in 1997, several times that of the United States Postal Service philatelic section. In 1997, the number of philatelic grassroots organizations reached 47,724 in mainland China.
Greg Manning Auctions, Inc. is the nation's leading stamp auction house and one of the largest specialty stamp houses in the world, and is a leading Internet auctioneer of coins, diamonds, sports cards and memorabilia. GMAI is the first publicly owned auction company to hold real-time auctions simultaneously over the Internet and via telephone, while providing confidential transmission of bidder and seller information over the Internet.
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.
This press release contains statements of a forward-looking nature relating to future events. Shareholders are cautioned that such statements are predictions and that actual events or results may differ significantly.
This release is available on the KCSA Worldwide Website at www.kcsa.com
CONTACT:
Greg Manning Auctions Inc., West Caldwell
Greg Manning, Chief Executive Officer
Bill Tully, Chief Operating Officer
973/882-0004
or
KCSA, New York
Jeff Corbin/Joseph A. Mansi
212/682-6300, ext 214/205
www.kcsa.com
KEYWORD: NEW YORK
BW1074 MAR 11,1999
5:40 PACIFIC
08:40 EASTERN
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