MSGI:
NEW YORK, Oct 20, 1999 (BUSINESS WIRE) -- Marketing Services Group, Inc. (Nasdaq: MSGI), an integrated marketing and Internet services industry leader, today announced the signing of a definitive agreement and concurrent closing to acquire up to a 10% stake in Mazescape.com, a Business-to-Business Web solution provider in the corporate segment of the Internet recruitment industry. Terms of the cash investment were not disclosed. Over the last three months, MSGI has secured three minority positions in Internet-related businesses, including Screenzone Media Networks, GreaterGood.com and Mazescape.com, complementing the Company's Internet subsidiaries that include WiredEmpire and Pegasus Internet.
Mazescape.com provides corporate recruiters with an end-to-end staffing solution utilizing the most innovative recruiting strategies, intelligence, training and technology to automate the recruiting process. Its unique services provide a customized, cost-effective strategy for each client to identify both active and passive job seekers via the Internet.
Corporate Internet recruiting is rapidly emerging as a key growth sector, as recruiters increasingly need assistance and tools to scrutinize today's estimated two million online job seekers, a number expected to reach 10 million by the year 2003. Forrester Research estimates that $105 million was spent in 1998 on online classified advertising. They anticipate this to more than double to $265 million in 1999 and reach $1.7 billion in 2003. Forrester estimates that online job advertising, which currently accounts for 1.3% of total recruitment advertising, will expand to almost 20% in 2003.
"Mazescape.com has a strong lead in an extremely fast growing business," commented Jeremy Barbera, Chairman and CEO of Marketing Services Group, Inc. "They are leaders in providing corporations with the technology and Internet tools to find, recruit, hire and track the best talent in the marketplace. With unemployment at a 30-year low, Mazescape.com provides an extremely valuable service to corporations in all business sectors, providing a more direct, less expensive means of hiring talent."
Frank Jones, founder and CEO of Mazescape.com stated, "This agreement significantly enhances our ability to deliver solutions to the corporate recruiter. This synergistic alliance provides Mazescape.com with the ability to leverage the wide range of marketing and Internet marketing services offered by MSGI in this new space and MSGI can take advantage of Mazescape.com's tools to enhance its internal Internet recruiting process."
Mr. Barbera continued, "We believe that the Internet provides a strong platform for growth and expansion for Web-driven Business- to-Business companies such as Mazescape.com, and we will be actively pursuing an Internet investment strategy consistent with these convictions."
About Mazescape.com LLC Mazescape.com LLC is an innovative Internet technology company that delivers customized, automated recruiting software and services that improve the performance of corporate recruiters. Mazescape.com is the only company to combine Web-based software with specialized intelligence, training and strategy consulting to provide an end-to-end solution for the corporate recruiter. Founded in 1999, the company is headquartered in Stamford, Connecticut, with offices in New York City and Tampa, Florida. More information is available at www.mazescape.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 Capital Corp. is the owner of an 18 percent stockholder position in MSGI and CMGI, Inc. 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 primary focus is on WiredEmpire, and its Marketing Agent technology. MSGI plans to 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, which has offices throughout the United States and in London. Corporate headquarters are located at 333 Seventh Ave., New York, NY 10001. Telephone: 917-339-7100. 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 annual report on Form 10-K for the year ended June 30, 1999.
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