And the response...
National Media Files Lawsuit Against Guthy-Renker Corporation
PHILADELPHIA, Feb. 20 /PRNewswire/ -- National Media Corporation
(NYSE: NM) today announced that it has filed suit against Guthy-Renker
Corporation concerning Guthy-Renker's failure to supply "Fitness Flyer"
exercise units to National Media as it is obligated to do under an agreement
between the two companies.
The two companies had co-funded "The Fitness Flyer" infomercial, which was
created and produced by National Media's subsidiary, Direct America. The
infomercial has been airing since late 1996. Under the agreement, both
companies have certain rights to air the infomercial separately in the
domestic market. National Media has exclusive rights to market the product
internationally. Guthy-Renker is responsible for all product supply.
The suit, filed in Los Angeles County Superior Court yesterday (Feb. 19),
alleges that Guthy-Renker has delayed or failed to ship a large majority of
the units ordered since National Media Corporation began airing "The Fitness
Flyer" infomercial. National Media has a backlog of customer orders for the
exercise equipment which would represent approximately $4.8 million in
revenues.
Brian J. Sisko, General Counsel for National Media Corporation, said,
"We made every effort to resolve this matter amicably, but we were forced to
take legal action to enforce our right to the product supply."
The Company also stated that it has received less than 1,000 units
suitable for shipment to its customers and that it believes that Guthy-Renker
has provided itself with over 20,000 units.
In related matters, Guthy-Renker alleged in a press release, issued after
it was informed of National Media's suit and after the close of the market
yesterday, that it had filed a suit against National Media on February 10.
"We have not seen the purported suit or its allegations, nor was any such
suit mentioned in conversations between the representatives of the two
companies as late as yesterday afternoon. However, the allegations as they
are described in Guthy-Renker's press release are completely without merit,"
Sisko said.
National Media Corporation is the world's fastest growing transactional
television programming company and has become a strong, integrated, global
consumer marketer through its consumer programming expertise and, with its
subsidiary companies, brings transactional television programming to more than
309 million television households worldwide.
To request previous press releases on National Media Corporation, please
contact PR Newswire at 800-758-5804, ext. 604644.
SOURCE National Media Corporation
CONTACT: Bruce Boyle, Director of Investor Relations of National Media, 215-988-4641
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