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Microcap & Penny Stocks : ETPI-Military Entertainment Enters Civilian Market -- Ignore unavailable to you. Want to Upgrade?

To: Kelly Igou who wrote (4739)	11/23/1999 1:34:00 PM
From: TerriB	Read Replies (1) \| Respond to of 4767

ETPI Signs an Agreement to Acquire Multi-Technologies Ltd HOUSTON--(BUSINESS WIRE)--Nov. 23, 1999--Entertainment Technologies & Programs Inc. (OTCBB:ETPI) today announced that it has signed an agreement to acquire Multi-Technologies Ltd., a communications, security and surveillance systems integrator based in San Antonio, Texas. Under the agreement ETPI is acquiring Multi-Technologies in exchange for ETPI unregistered, restricted common shares. Multi-Technologies is expected to add $5 million in gross revenues to ETPI, $3 million from Multi-Technologies' existing operations and an additional $2 million from combined operations with ETPI. With the acquisition completed, ETPI expects to achieve total revenues of $12 million in fiscal 2000 and projects earnings of $0.05 per share as a result of the acquisition. Multi-Technologies enables ETPI to spawn new opportunities based on ETPI's relationships in U.S. Military markets and capitalize on relationships established by Multi-Technologies Ltd., in its markets. ETPI thus establishes a beachhead on the communications, security and surveillance systems front, which leverages its expertise in integrating and servicing remote electronics systems worldwide. ETPI will achieve several other synergistic benefits from the acquisition. ETPI and Multi-Technologies employ complementary business models. Currently, ETPI's core NiteLife division integrates and services electronic sound and light equipment on military bases worldwide. The addition of Multi-Technologies enables NiteLife to integrate a parallel new product and service category into this secure distribution network, which is protected by barriers to entry and high switching cost. Given these conditions, ETPI expects this acquisition to yield unlimited upside potential. "This agreement with Multi-Technologies provides ETPI with an attractive opportunity to diversify into the communications, security and surveillance systems integration business," commented ETPI CEO, James D. Butcher. "The combined firm will create value on several fronts and should easily surpass preliminary revenue estimates. In addition to substantial revenue increases we should see bottom line accretion in the first year. The acquisition also allows ETPI to achieve a tax benefit and higher EPS by utilizing significant net operating losses in the short term. Over the long-term, combined operations with Multi Technologies should allow the company to show a continued growth rate in excess of 25%." Multi-Technologies Ltd. is a systems integrator for communications, security and surveillance systems. According to the most recent comparisons, the company has outperformed the industry in several areas. Fiscal 1998 figures indicate that the Security Systems and Services Industry has shown a sales growth rate of 28.05%. Multi-Technologies' sales growth rate was 26% that year. The industry showed a gross margin of 36.56% and a pretax margin of 10.10%. During the same period, Multi-Technologies had a gross margin of 47% and a pretax margin of 12%. Inventory turnover in 1998 was 5.75 times for the industry, as compared to 9.83 times for Multi-Technologies. Forward-looking statements in this press release are 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 changes in ETPI's or Multi-Technologies' business environment, completion of a planned funding package, and certain other contingencies, not yet completed by the company, and other risks. CONTACT: Entertainment Technologies & Programs Inc., Houston Fritz Boudreaux, 281/486-6061