Attention Business Editors:
Kazz Industries Inc.
KALISPELL, MT, Feb. 23 /CNW/ - KAZZ INDUSTRIES INC. has become aware of a
news release in the United States regarding a proposed merger of i360 inc., a
corporation in which Kazz Industries Inc. holds 1,000,000 shares and InfoCast
Corporation. Kazz Industries Inc. has not had any communications with either
i360 inc. or InfoCast Corporation in connection with the proposed merger and
the extent of its knowledge in respect of the proposed merger is confined to
the news release from InfoCast Corporation. Subject to its understanding the
terms of the proposed merger, Kazz Industries Inc. is in support of the
concept of the merger.
The following is a reproduction of the press release as obtained by Kazz
Industries Inc. from Yahoo! Finance PRNewswire:
''Wednesday February 23, 8:07 am Eastern Time
Company Press Release
SOURCE: InfoCast Corporation
InfoCast Acquires i360 in U.S. $90 Million Merger Transaction Custom
Portal Provider for Network Marketers, Affinity Groups Accelerates InfoCast
Business Model
TORONTO, Feb. 23 /PRNewswire/ -- InfoCast Corporation (OTC Bulletin
Board: IFCC - news), an e-enabling application service provider (ASP), and
i360 inc., a Tucson-based provider of customized portals for virtual
communities, today announced that they have agreed to merge. The merger will
give InfoCast access to i360's growing customer base of network marketing
organizations and affinity groups.
''We anticipate this merger will accelerate InfoCast's business model by
six months, and be a catalyst for more rapid growth,'' says Jim Leech,
InfoCast's president and CEO. ''As an enabling ASP for business-to-business
e-commerce, InfoCast is well positioned to provide infrastructure-on-demand
for i360's rapidly-growing customer base and its low-cost, high-profit, viral
marketing strategy.''
Under the terms of the agreement, i360 will merge into InfoCast and i360
shareholders will receive an aggregate of 12 million shares of InfoCast common
stock -- valued at approximately U.S. $90 million based on the closing price
of U.S. $7.63 on February 22, 2000 -- in exchange for their shares of i360. In
addition, all outstanding options to purchase i360 stock will be exchanged for
options to purchase an aggregate of 1.5 million shares of InfoCast common
stock at an exercise price of U.S. $4.00 per share. The closing of the merger
transaction is contingent upon approval by InfoCast's board of directors,
receipt of any required regulatory approvals, and certain other conditions.
After giving effect to the merger, InfoCast will have a total of approximately
36 million common shares issued and outstanding, and one-third of InfoCast's
board of directors will comprise nominees of i360.
i360 Targets Viral Marketers
i360's Portal and Virtual Community System will be hosted on InfoCast's
ASP platform, a network anchored by a Sun Microsystems Enterprise 10000
supercomputer. Provided on a revenue-sharing basis, i360's solution offers
rapid deployment of highly customized, branded Web portals for network
marketing organizations and affinity groups. These portal-based communities
are aggregated through i360's packaged Internet access for PCs or its Internet
appliance, the netHomeTV(TM) Web set-top box. Community subscribers will have
easy access to their organizations' content, interactive communication
services, e-commerce features, and online customer support.
i360 pursues a highly-targeted, low-cost viral marketing strategy by
signing exclusive contracts with well-established, international network
marketing organizations with at least 100,000 members. In these organizations,
members sell to their downline networks and directly to consumers. The company
has similar revenue-sharing agreements with global affinity groups such as
professional associations, seniors groups, educational organizations, and
religious associations.
Customer Expects Rapid Adoption
''We chose i360 to be our community portal provider because they have the
industry expertise in network marketing needed to develop an effective
solution for our organization's needs,'' says Joe Markiewicz, Executive
Diamond and Chairman of the ISP Committee for Britt Worldwide, a network
marketing organization with approximately one million members. ''Even before
we officially launched our portal, over 3,000 of our members purchased
subscriptions. We see it as an effective communication and sales tool in Britt
Worldwide's e-business strategy, and anticipate rapid adoption in our
membership worldwide.''
''We believe i360's viral marketing strategy will attract millions of
users into virtual communities rife with e-commerce transactions, from which
InfoCast as the infrastructure provider will take a share of revenue,'' notes
Leech. ''What's more, these portals will provide the all-important 'eyeball
stickiness' so vital to e-commerce. And such virtual communities will also
generate demand for InfoCast's own virtual call center (VCC) and e-learning
solutions.''
Bill Cochrane, president and CEO of i360, says he was attracted to
InfoCast's infrastructure-on-demand for e-business. ''InfoCast provides the
scalable, secure platform we need to host our virtual communities, as well as
the next-generation customer care infrastructure to make them into online
marketplaces,'' Cochrane says. ''By joining with InfoCast, we will be able to
offer our customers a richer e-business environment for custom-branded portals
and virtual communities.''
About InfoCast
InfoCast Corporation is a leading e-enabling application service provider
(ASP), providing secure, scalable infrastructure-on-demand for enterprises to
build closer relationships with customers, partners, and employees. Core
InfoCast offerings include virtual call center (VCC), telework, and e-learning
applications coupled with related best-of-breed offerings for customer care,
data warehousing, and e-commerce. More information about InfoCast Corporation
can be found at infocast-corp.com.
About i360 inc
i360 is revolutionizing the way businesses, organizations, and affinity
groups acquire and retain customers by using Web-based communities to maximize
communication and achieve their missions. A provider of customized portals for
virtual communities, i360 provides privately-branded Portal and Virtual
Community Systems, bundles Internet access with compelling content, targeted
business products, e-commerce, and customer support, accessible through PCs or
i360's netHomeTV(TM) Internet appliance. i360 is committed to empowering
organizations with innovative technologies that improve the lives of their
members. The company's headquarters are in Tucson, Arizona. For more
information, go to i360inc.com.
This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and section
21E of the Securities Exchange Act of 1934, as amended, which are intended to
be covered by the safe harbors created thereby. The forward-looking statements
are based on management's current expectations or beliefs and are subject to a
number of factors and uncertainties, including without limitation, the ability
of the Company to market and develop its products. Although the Company
believes that the assumptions underlying the forward-looking statements
contained herein are reasonable, any of the assumptions could be inaccurate,
and therefore, there can be no assurance that the forward-looking statements
included in this press release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements included
herein, the inclusion of such information should not be regarded as a
representation by the Company or any other person that the objectives and
plans of the Company will be achieved.
Contact Info: Cliff A. Jones, Investor Relations of InfoCast Corporation,
Toll Free: (877) 338-8889, cjones@infocast-corp.com.
SOURCE: InfoCast Corporation
Other than the forgoing, Kazz Industries Inc. has no additional
information to add.
%SEDAR: 00011389E
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For further information: Bill Morton, Kazz Industries Inc., (406)
755-2111
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