K-tel International, Inc. Appoints New President; Ken Onstad Adds to K-tel His Extensive Strategic Planning Expertise
MINNEAPOLIS--(BUSINESS WIRE)--March 9, 2000--Philip Kives, Chairman and CEO of K-tel International, Inc. (NASDAQ:KTEL) today announced the appointment of Ken Onstad as President of the Company.
Onstad, a twenty-six year veteran of Musicland Stores Corporation (NYSE:MLG) has held numerous Musicland positions, including Vice President of Strategic Planning, Managing Director and President of United Kingdom operations.
"Mr. Onstad's strategic expertise, and knowledge and passion for supplying music to customers will be a tremendous asset to us at K-tel. We are pleased that he has joined the team, bringing with him years of executive managerial experience in the music industry. Ken will play a key role driving K-tel's continued prominence in marketing through multiple channels, including our Internet operation, K-tel Online," said Kives.
Onstad replaces Lawrence Kieves, who has decided to leave the Presidency of the Company to pursue other interests, and who remains a member of the Board of Directors.
The newly appointed President, Onstad, said, "This is one of the most exciting times in the history of music delivery and it is remarkable to have an opportunity to work with a company that embraces the challenges and works hard to create opportunity where others see hurdles. K-tel thrives on innovation and creativity and that will position us well for the future that technology is bringing to this industry."
Commenting on the Company's Internet initiatives, Onstad added, "I am looking forward to joining K-tel, which is in the unique position of having not only an aggressive e-commerce strategy, but also an extensive library of music titles that it owns, allowing for tremendous creative leeway in packaging and marketing."
According to International Data Corporation, the number of Web users worldwide was approximately 142 million at the end of 1998 and will grow to approximately 399 million by the end of 2002. The number of online buyers is also expected to increase from 30.8 million in 1998 to 133.9 million in 2002, which represents a compounded annual growth rate of 44%.
Musicland Stores Corporation is the leading specialty retailer of pre-recorded home entertainment products in the United States. At year-end 1999, the company operated 1,345 stores in 49 states, Puerto Rico and the Virgin Islands.
K-tel International, Inc. is a vertically integrated developer, marketer, and distributor of entertainment and consumer products worldwide. The Company markets its product lines through the Internet, and to retailers, wholesalers, distributors, or licensees throughout the world. K-tel has two Internet Web sites, (www.ktel.com) in the U.S. and (www.ktel.de) in Germany. Ktel.com features 250,000 music titles, custom CDs and 35,000 home video titles, consumer products, and an auction site. K-tel has active operations in the United States, United Kingdom and Germany.
The statements in this news release may contain forward-looking statements relating to future results of the Company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projections as a result of certain risks and uncertainties, including but not limited to, changes in political and economic conditions, demand for and market acceptance of new and existing products, the impact from competition for Internet content, merchandise and recorded music, dependence on strategic alliance partners, suppliers and distributors, market acceptance of the Internet for commerce and as a medium for advertising, technological changes and difficulties, availability of financing and other risks detailed in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements.
CONTACT:
K-tel International, Inc.
Steve Kahn, 818/225-6160
or
Coffin Communications Group
818/789-0100
Bill Coffin/Sean Collins
KEYWORD: MINNESOTA INTERNATIONAL EUROPE |
