MSGI Announces Investment in GreaterGood.com
July 1, 1999 08:35 AM
NEW YORK--(BUSINESS WIRE)--July 1, 1999--Marketing Services Group, Inc. MSGI , an Internet and marketing services industry leader, today announced its commitment to acquire a 25% stake in GreaterGood.com, a leading cause-related e-commerce company. GreaterGood.com enables online shoppers to buy branded products from well-known retailers, including Amazon.com and eToys, OfficeMax.com, 1-800-FLOWERS, and jcrew.com, and donate 5% or more of each purchase to benefit the charity of their choice at no extra cost. GreaterGood.com also builds, co-markets, and manages online shopping villages for not-for-profit organizations.
The investment will take the form of convertible preferred stock for 20% on a fully diluted basis plus warrants to acquire another 5% based on the terms of a strategic alliance marketing services agreement. MSGI will also have a seat on GreaterGood.com's board.
Jeremy Barbera, Chairman and CEO of Marketing Services Group, Inc. stated, "We are investing in Greatergood.com because they provide an extremely valuable service to e-commerce companies and online buyers. Plus, they have a great management team and are clearly the dominant player in their field."
"In addition to our investment, MSGI will encourage our blue-chip clients to take advantage of GreaterGood.com's service. We see it as a win-win service. It's an excellent marketing tool, it helps worthy causes and creates a positive image for the e-commerce sites that use the service."
"MSGI is a key strategic investor," said Paul Goodrich, CEO of GreaterGood.com. "With their growing Internet investments, and their strategic shareholders, CMGI and GE Capital, we have found a partner that can add considerable value to our company. MSGI provides us with a remarkable opportunity to accelerate our business."
Not-for-profit organizations representing more than 15 million supporters have partnered with GreaterGood.com, including The Nature Conservancy, Special Olympics, Save the Children, World Wildlife Fund and Humane Society of the U.S. In June, the company announced a program that enables not-for-profits of any size, from anywhere in the United States, to participate in this innovative fundraising opportunity by applying online at www.GreaterGood.com.
About GreaterGood.com
GreaterGood.com is a Seattle-based company that was founded and originally financed by the Madrona Investment Group, a private investment firm specializing in Internet and telecommunication investments. The online shopping villages that GreaterGood.com builds and manages for its participating not-for-profit partners are customized, branded with the organization's name, and accessed from the not-for-profit's own home page. Whenever a supporter buys any item online at the retailers in the not-for-profit's shopping village, 5 percent or more of the purchase price automatically benefits that organization--at no cost to them or the consumer.
GreaterGood.com provides an easy, no-risk, no-cost way for its partner organizations to create sustainable new revenue sources. At the same time, the company's online and offline marketing programs provide the not-for-profit partners with a way to cost-effectively expand their donor base and extend the giving season beyond the holidays into a year-round, everyday activity. GreaterGood.com can be contacted by calling (206) 674-8700 or by visiting its Website: greatergood.com.
About MSGI
Marketing Services Group, Inc. is a leader in the Internet and marketing services industries. MSGI's revenues have grown from $16 million in fiscal 1996 to in excess of $100 million on an annualized basis. GE Equity is the owner of a 22 percent stockholder position in MSGI and CMGI is the owner of a 10 percent stockholder position in MSGI.
MSGI is organized into two business divisions: the Internet Group and the Marketing Services Group. The Internet Group's mission is to acquire, invest in and incubate Internet companies. Its preliminary focus will be on PermissionPlus(TM) and will expand into other strategic areas. The MSGI Internet Group provides Internet marketing, e-commerce applications, Web development and hosting, online ad sales and consulting. Its Marketing Services Group provides strategic planning, direct marketing and database marketing, telemarketing and telefundraising, media planning and buying and fulfillment. Through this business segment, MSGI will continue to grow by leveraging the synergies it has across all its companies in marketing, technology, and capabilities.
Thousands of clients worldwide are provided services by MSGI with offices throughout the United States and in London. Corporate headquarters are located at 333 Seventh Ave., New York, NY 10001. Telephone: 212-594-7688. Additional information is available on the Company's Website: msginet.com.
Matters discussed in this release include forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ are stated in the company's reports to the Securities and Exchange Commission including its 10-Q for the period ended March 31, 1999 and the annual report on Form 10-KSB for the year ended June 30, 1998.
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