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Planet Entertainment Corp. andMaxnet, Inc. Sign Letter of Intent to Form a 50/50 Partnership inInternet Radio Station MaxPlanet-Radio -MPR-
March 17, 1999 12:00 PM
MIDDLETOWN, N.J.--(BUSINESS WIRE)--March 17, 1999--Planet Entertainment Corp. PNEC and Maxnet, Inc. MXNT today announced that they have signed a letter of intent to form a jointly owned entity called MaxPlanet-Radio, Corp. The new entity will combine MXNT's MaxPlanet-Radio (MPR) technologies with Planet Entertainment's proprietary music catalog of 15,000 titles. In addition, Planet Entertainment's wholesale division, Northeast One Stop, gives the new entity access to a selection of over 130,000 music, video and DVD titles. This creates the ability to become one of the largest and most advanced Internet radio stations that will offer digital downloading directly from Planet Entertainment's catalog of proprietary music and as a platform to showcase new artists. Customers will be able to create their own CDs, listen to music 24 hours a day and order the music they are listening to. Since its launch thirty days ago, MXNT's MaxPlanet-Radio has realized over 400,000 page views and is expected to realize over 1,000,000 page views in the next thirty days in conjunction with this agreement.
Planet Entertainment owns 15,000 proprietary music titles, ranging from rock to classical, and on March 1st, released 50 proprietary compilation CD albums for sale internationally and domestically. In addition, the Company recently acquired its own wholesale/distribution center and is also selling entertainment product directly off its e-commerce site, www.planetentertainment.com, making it one of the only sites that facilitates its own product fulfillment. In fiscal 1998, ended August 31, 1998, the Company reported over $35 million in revenue. The Company reported first quarter revenue of $14.9 million and had a net income of $469,000, or $0.04 per share.
Michael Marsowicz, CTO for MXNT, stated, "By forming a joint venture with Planet Entertainment, we will have access to an inventory of over 130,000 CDs, videos and DVDs as well as direct fulfillment through their recently acquired wholesale division, Northeast OneStop. Combining MXNT's original shows and music with Planet Entertainment's enormous proprietary catalog and in-house production studios creates the perfect mix of User and Advertiser stickiness. This will enable distributors to sell product directly to market, and offers the User/consumer the ability to order directly from MXNT's JukeBox Entertainment area, www.maxplanet.com/planetentertain."
Wallace Giakas, Chairman of Planet Entertainment commented, "We are extremely impressed with MXNT's www.MaxPlanet.com and MaxPlanet-Radio. The synergies between our two companies could lead to several exciting opportunities for the Company such as providing an alternative source to sell product and market our proprietary line of compilation CD albums."
About Planet Entertainment:
Planet Entertainment is a diversified entertainment company specializing in music production, wholesale distribution and marketing of front-line recorded music, video and DVD titles as well as its proprietary CD compilation albums. The Company, which operates a wholesale distribution facility, two wholly owned recording studios and four record labels is also engaged in the acquisition, enhancement, licensing and re-release of music from their extensive library of over 15,000 original musical master recordings as well as the production of new artist albums. In order to enhance distribution, the Company recently acquired Northeast One Stop, Inc. (NEOS), a privately held wholesale distribution facility of recorded music, video and DVD products based in Latham, NY. NEOS has inventory of 130,000 front-line titles and last year was named Medium Wholesaler of the Year by the National Association of Record Manufacturers (NARM). The Company 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, which has recently become affiliated with Amazon.com AMZN and J. Crew as an Associate.
About MXNT:
MaxPlanet-Media is the title of MXNT's entertainment division for original sound track content used in MXNT's media productions. Whether it's a thirty-second jingle or a two-minute theme song, www.MaxPlanet.com and MaxPlanet-Media is the place to get it. Additionally, MaxPlanet-Media is a production company specializing in the production and distribution for independent artists. With over 100,000,000 Users on the Internet today, MXNT is seeking to utilize and maximize all these distribution channels. MXNT's use of its recording label MAXIM MUSIC will bring a new artist to market quickly and allow the artist to participate in revenues at an earlier stage than many larger labels. MXNT will be assisting the artist in gaining back revenues, which are usually lost in distribution costs. MAXIM MUSIC is currently working with several RAP and ambient music artists on MXNT's MaxPlanet-Radio (MPR) area. Many artists are taking this marketing approach towards the Internet where every-person and every-site becomes an integral part of distribution. Therefore, distribution becomes ubiquitous, as it should be. MXNT's approach provides the artist and advertiser a custom platform where the potential revenue production is open 24 hours a day, 7 days a week, 365 days a year while also allowing the independent artist to realize a larger slice of the net profit. Therefore, at MXNT's MAXIM MUSIC and MaxPlanet-Radio (MPR), the User is able to quickly bond with the artist while building logs of songs to download and play on line, or purchase the single track or the entire CD.
Maxnet, Inc., MXNT is an integrated Internet Development Company focused on creating and expanding strategic alliances for its comprehensive network of consumer and business-oriented web services with offices in New Jersey and Florida.
For further information on Maxnet, visit their websites:
maxplanet.com maxplanet.com maxplanet.com maxplanet.com mxnt.com maxplanet.com
Maxnet, Inc., MXNT is currently changing its name to reflect its new diversified Internet marketing business.
Certain of the statements included in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. The companies note that a variety of factors could cause the companies actual results and experience to differ materially from those expressed in these forward-looking statements. This release may contain forward-looking statements, made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties, which might cause the actual results to differ materially from those projected in any forward-looking statements. Factors which could affect results include the development and introduction of competitive technologies, the market awareness and acceptance of the Maxnet technologies, the overall market demand for internet services, the presence of technologically inferior products and services which are priced or promoted to compete with Planet Entertainment and Maxnet services, the ability to attract and retain technical personnel, and the ability of the companies to protect its proprietary information.
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