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Wednesday April 7, 8:53 am Eastern Time
Company Press Release
SOURCE: Innovo Group Inc.
Innovo Group Inc. Finalizes Purchase Agreement with DS-MAX U.S.A. Inc. and Marlor Trading Inc.
KNOXVILLE, Tenn., April 7 /PRNewswire/ -- INNOVO GROUP INC. (Nasdaq: INNO - news), a manufacturer and supplier to national and international retailers, including Wal-Mart, K-Mart, Michael's, Hobby Lobby, Dollar General, Profitt's, Goody's and Fabri-Center, announced today that the Company has finalized a purchase agreement with DS-MAX U.S.A. Inc. and Marlor Trading Inc. for Innovo's domestic and international licensed products. DS-MAX U.S.A. Inc. and Marlor Trading Inc. are both subsidiaries of DS-MAX International Inc. The purchase agreement defines the terms and conditions that will govern the relationship between the parties. Innovo and the two purchasing parties are in the final stages of the first purchase order for Innovo products pursuant to the agreement.
DS-MAX U.S.A Inc., domestically, and Marlor Trading Inc., internationally, combine to create a leading worldwide direct marketing organization for consumer products. The two Companies currently have over 50,000 individuals who sell the Companies' products utilizing the direct, door-to-door sales method. Direct sales is a method of marketing in which products are sold directly to consumers outside the traditional retail environment. In 1997, according to the Direct Sellers Association, (''DSA''), total retail sales through the direct sales channel was in excess of $22.21 billion.
DS-MAX U.S.A. Inc. and Marlor Trading Inc. also distribute products into the retail markets through rack displays located in retail stores. Pursuant to the agreement between the parties, products purchased from Innovo will be distributed through the direct sales method as well as the retail display racks and the purchased products will encompass all of Innovo's domestic and international licenses.
Jay Furrow, V.P. of Corporate Development, stated that ''this agreement commences what Innovo believes will develop into a long and prosperous relationship for both parties. DS-MAX and Marlor are both well-established organizations who cater to a customer base that is ideal for Innovo's licensed products. The entry of Innovo products into the direct sales market and the rack display market furthers the Company's goal of creating new distribution channels with new customers. Innovo believes that with the tremendous purchasing power of DS-MAX and Marlor the strategic alliance that has been created will result in a substantial amount of new sales in the very near future.''
Innovo Group Inc. designs, markets, manufactures and distributes fashion and sports licensed nylon and canvas products for the multi-billion dollar crafts industry and retail sector in the United States and Europe. Under licensing agreements, the Company's sports lines feature the designs of the NBA, NFL, Major League Baseball, NHL, numerous collegiate teams, Walt Disney and Warner Brothers. Innovo also has certain exclusive and non-exclusive manufacturing and distribution rights for NASCAR licensed products.
This press release may contain forward-looking statements made pursuant to the ''safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's product, product demand, competition, capital adequacies, access to additional capital if required and other risks and uncertainties detailed from time to time in the Company's periodic reports including Quarterly Reports on form 10-Q and Annual Reports on form 10-K.
SOURCE: Innovo Group Inc. |
