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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (2988)	7/23/1999 1:13:00 PM
From: bob sims	Read Replies (3) \| Respond to of 7056

Hitsgalore.com, Inc. Announces a Profitable 2nd Quarter RANCHO CUCAMONGA, Calif., July 23 /PRNewswire/ -- Hitsgalore.com, Inc., (OTC Bulletin Board: HITS - news) has announced preliminary revenues and expenses for the 2nd Quarter, the three months ended June 30, 1999. Net sales revenues for the 2nd Quarter, related to the website at hitsgalore.com, were approximately $1.2 million. This is more than three times the Net revenues of $391,000 for the previous quarter, as reported in the Company's Form 10-Q. The Company's Internet model and website were developed in the second half of 1998, and the Company reported 1998 revenues of only $17,779 in its 1998 Form 10-K. The Company reports preliminary expenses for the quarter, before taxes, amortization and depreciation, of just over $1,000,000, indicating income from operations of about $200,000 before taxes, amortization or depreciation. Hitsgalore.com has previously reported profitability in its 1998 Annual Report (Net income of $1,007) and its 1st Quarter Form 10-Q. Dorian Reed, Chairman and Chief Technology Officer, said, ''It is exciting for us to continue to be profitable, even as we have laid the foundation for future growth through our advertising efforts and the launching of new Portal Services. The Hitsgalore.com business model was profitable in its year of inception, and is continuing that trend into its first full year of operations.'' As previously reported by the Company in its filings, over a one-year period that began in April 1999, the Life Foundation Trust is acquiring Local City Editions throughout the United States for a total consideration of up to $10 million. Hitsgalore.com recognizes the revenue as new Local City Editions are ready to be brought online. The Company experienced a dramatic increase in its advertising costs in the quarter, as compared to the previous quarter. The Company engaged in several advertising campaigns, including a national radio placement and banner advertising placed by DoubleClick. Hitsgalore.com projects positive income from its unique business model of giving away free banners, lifetime banner placement, and other Portal Services. The Company generates revenue from its Keyword Bid & Rank program, sponsorships of Portal Services, and Local City Editions featuring local content. Hitsgalore.com strives to provide porn-free searching and does not accept or encourage any porn or adult-content listings on its site. Hitsgalore.com expects continued revenue growth in its core line products and services, and will bring other services online over time. Financial statements in this press release other than historical facts are ''forward-looking'' statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. Hitsgalore.com, Inc. intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements are subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the company's actual results could differ materially from expected results. The figures reported by the Company are internally prepared and have not been subjected to audit. The stated expenses are before any amortization, depreciation, or allowance for taxes.