News today on another acquistion
Company Press Release
eUniverse to Acquire Online DVD Pioneer
MegaDVD.com, a pioneer in the online sales of
DVDs has signed a letter of intent to be acquired
by eUniverse, Inc.
WALLINGFORD, Conn. --April 27, 1999—eUniverse, Inc ( a.k.a. Motorcycle
Centers of America, Inc.) (OTC BB:MCAMD) today announced the signing of
a letter of intent to acquire MegaDVD.com (www.megadvd.com).
MegaDVD.com, founded in June 1997 and profitable since inception, is one
of the pioneers in online retailing of DVDs and accessories.
MegaDVD.com, which carries almost every DVD title available, has been
featured in Billboard magazine, the Hollywood Reporter and Stereo
Review.
“This is a great acquisition for the eUniverse.com network as we have
been looking to make an aggressive move in the DVD arena, as we believe
it's a sector poised to grow dramatically,” explained Chairman Brad D.
Greenspan. “MegaDVD.com immediately provides eUniverse with a loyal
DVD-purchasing customer base. More importantly, we are acquiring great
management, as Steve Martin, the founder and CEO of MegaDVD.com, will
join the eUniverse team and be responsible for running the entire video
and DVD online retail stores of the eUniverse.com network."
Forrester Research projects that more than 4.3 million DVD players will
be installed in North America by the end of 1999 and that penetration
will approach 9 million players by the end of 2000. Paul Kagan
Associates projects that annual U.S. retail revenue from DVD-video sales
will be $661 million in 1999, $1.3 billion in 2000 and $2.9 billion in
2002.
“I am looking forward to working with the eUniverse team,” said Steve
Martin, founder and CEO of MegaDVD.com. “I believe that eUniverse has
barely scratched the surface on the sales of DVDs, videos and related
accessories, and I intend to immediately implement plans, tapping into
eUniverse's existing customer base and a growing network of traffic in
order to aggressively grow sales.”
It is expected that a definitive agreement between MegaDVD.com and
eUniverse, Inc. will be signed within 7 days and the transaction will
close upon the satisfaction of certain conditions set forth in such
agreement. It is expected that the closing will occur within 21 days. In
the transaction, eUniverse, Inc. is issuing common stock to the
shareholders of MegaDVD.com. The terms of the transaction have not been
disclosed.
About eUniverse, Inc. (www.euniverse.com)
eUniverse, Inc. is a network of entertainment-focused commerce,
community, and technology driven Web sites.
Through its online commerce property, CD Universe (www.cduniverse.com,
www.videouniverse.com), eUniverse competes directly with companies such
as Amazon.com (Nasdaq:AMZN) and CDnow (Nasdaq:CDNW). CD Universe has
over 275,000 customers and was recently rated by Bizrate, an independent
commerce ranking service, the third best online shopping site for
customer service out of 500 online merchants.
Through its recently acquired online property, Cases Ladder
(www.casesladder.com), eUniverse has added over 1 million registered
users and operates one of the largest interactive entertainment
communities on the Internet.
CONTACT:
Investor Relations
Robert Pratt
toll free: 877-318-1819
or
eUniverse, Inc.
Brett Brewer
203-294-1648 x554
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