HMG Worldwide and Pacific Softworks Announce Successful Test of Internet-enabled "Smart Display"
NEW YORK--(BUSINESS WIRE)--Feb. 17, 2000--HMG Worldwide Corporation
(NASDAQ: HMGC - news), in conjunction with Pacific Softworks (NASDAQ: PASW - news), today announced the successful testing of its new ''Smart Display.'' This groundbreaking, Internet-enabled, point-of-purchase technology will be marketed to HMG Worldwide's Fortune 500 client base for use in their in-store merchandising systems that are designed and manufactured by HMG.
HMG Worldwide and Pacific Softworks announced in September of 1999 a strategic alliance to develop Internet-enabled in-store displays. Tests were successfully completed this week on the first-ever ''Smart Display'' utilizing Pacific Softworks embedded Internet appliance technology. The new system allows Internet access to valuable data from in-store point-of-purchase displays. The data transmitted from the displays will include such valuable information as inventory levels and sales trends. This information will be available worldwide to consumer goods companies without incurring the expense of a representative physically visiting a store. The ''Smart Display'' technology will also allow a consumer goods manufacturer to
communicate with a consumer at the point of sale.
In-store display systems that are equipped with this proprietary hardware and software will be accessible over the Internet by consumer goods manufacturers. According to HMG, the new technology is expected to reduce merchandising costs, allow better management of inventory and labor, and allow customized marketing and advertising initiatives at the point-of-purchase, based upon the data transmitted from the ''Smart Displays. ''
HMG Worldwide plans to immediately market its new Internet-enabled merchandising technology to its blue-chip client base. The first Internet-enabled display systems are expected to launch in a pilot program during the second quarter of 2000.
Michael Wahl, Chairman of HMG Worldwide said, ''HMG and Pacific Softworks have developed an Internet-enabled in-store marketing solution that is likely to revolutionize in-store marketing and merchandising. This initiative is a further indication of HMG's vision to utilize cutting-edge technology to develop total solutions for point-of-purchase marketing. By allowing Internet access to a consumer-goods display, our customers will be able to determine inventory levels and track sales trends, thereby reducing maintenance, merchandising, labor, and inventory costs. At the same time, innovative interactive marketing displays can be installed at the point-of-purchase that can be updated or modified based upon the data that is transmitted from the display. By having Internet access to an in-store display, HMG's customers will be able to eliminate unnecessary store visits and will be able to know, in advance, the exact inventory needs of any in-store display prior to a visit.''
HMG Worldwide's CEO, Andrew Wahl, added, ''By streamlining the restocking process and eliminating unnecessary visits, our customers will realize tremendous savings. Additionally, HMG might realize a revenue stream from our customers by charging subscription or transaction fees for the 'Smart Displays.' This is a never-before-identified revenue generator in the in-store marketing industry that could add significantly to HMG's bottom-line.''
Ultimately, HMG envisions a complete 'Smart Store' where all in-store displays and fixtures are Internet-enabled and connected to central systems that will allow access to valuable data for both manufacturers and consumers, allowing targeted marketing in-store.
Mr. Andrew Wahl continued, ''Furthermore, HMG sees an obvious fit for our Web-brand consulting subsidiary, Ego Media. In the future, we plan to utilize Ego Media's content development expertise and front-end development abilities to create interactive point-of-purchase displays to complement and capitalize on Pacific Softworks' back-end technology. At this point, the possibilities seem boundless.''
Glenn Russell, Chairman of Pacific Softworks, commented, ''We were delighted to be involved with HMG Worldwide from the inception of our relationship in mid-1999. Upon developing our proprietary systems, we were determined to partner with a market leader that would allow us the greatest leverage and exposure. As the market leader in the in-store point-of-purchase display industry, HMG was the obvious choice.''
Commenting on the joint ''Smart Display'' program, William Sliney, President of Pacific Softworks, said, ''By partnering with HMG to deploy our Internet appliance technology in their display systems, we stand ready to revolutionize the merchandising and in-store marketing industries. This week's successful test of the Internet-enabled in-store marketing technology is the first step towards capturing a previously unrealized market. The potential for our collaborative effort is seemingly endless. Pacific Softworks is excited by the potential impact of this new initiative.''
About Pacific Softworks
Pacific Softworks develops and licenses Internet and Web-related software and software-development tools. The company's products enable Internet and Web-based connectivity in embedded displays.
The company's products are used throughout the Internet and in information appliances, which are Internet-connected versions of everyday products, such as vending machines, in-store displays, set-top boxes and other digitally based devices. Pacific Softworks has headquarters in Newbury Park, California.
About HMG Worldwide and Ego Media
HMG Worldwide, in conjunction with its Ego Media subsidiary, offers a unique seamless blend of point-of-purchase marketing experience combined with Web-branding and e-commerce expertise providing clients with insights, solutions, and opportunities that create tangible results wherever purchase decisions are made.
Ego Media is the Web-branding and Web consulting services subsidiary of HMG Worldwide. Ego Media is a brand development and communications group that specializes in new media. Ego Media's goal is to unify all creative efforts into a strategy that delivers distinct personalities for enterprises.
(This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as ''will'' or ''should'' and similar expressions reflecting something other than historical fact are intended to identify such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.)
Contact:
Robert V. Cuddihy, Jr.
HMG Worldwide Corporation
Chief Financial Officer
Direct No.: 212-714-6251
HMG Worldwide Corporation
George S. Panagiotou, Jr.
Direct No.: 212-714-6291
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