(BSNS WIRE) TSIG.com Enters into Definitive Agreement to Acquire Reliant In
TSIG.com Enters into Definitive Agreement to Acquire Reliant Interactive Media
Corp.
Business Editors/Technology Writers
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--June 26, 2000--TeleServices
Internet Group Inc. (OTCBB:TIGI), known as TSIG.com, today announced
that it has entered into a definitive agreement to acquire Reliant
Interactive Media Corp., a direct marketing company that specializes
in the production of long-form commercial programming that drives
retail sales via television and the Internet. For the twelve-month
period ending March 31, 2000, Reliant had net sales of $41.2 million
(unaudited), of which $20.1 million (unaudited) were in the first
fiscal quarter of 2000. For fiscal year 2000, Reliant's sales are
targeted at $90 million.
The acquisition complements TSIG.com's recently announced
acquisition of GeneralSearch.Com, a portal and search engine company,
because Reliant's marketing programs have the potential to drive
millions of Internet users to register on GeneralSearch.Com. The
acquisition of Reliant is also designed to leverage TSIG.com's
relationships with multi-national corporations such as Coca-Cola and
Lufthansa, and national non-profits such as UCP, by introducing them
to the business of Reliant and its proven marketing programs. The
transaction will close after the acquisitions of GeneralSearch.Com and
The Affinity Group LLC, and is subject to the approval of Reliant's
shareholders. TSIG.com has agreed to provide up to $10 million of
working capital for the acquired entity, and to execute three-year
employment agreements with Kevin Harrington, the chairman and chief
executive officer of Reliant, as well as Tim Harrington and Mel
Arthur, the other key members of the management team. In exchange for
100% of the equity of Reliant, TSIG.com will issue 3.5 million shares
of its common stock. Other terms were not disclosed.
"With the acquisition of Reliant, TSIG.com gains a powerful
marketing engine and a management team that has been responsible for
over $3 billion in sales over the past sixteen years," commented
Robert Gordon, chairman of TSIG.com. "This acquisition of marketing
know-how and talent is a perfect complement to GeneralSearch.Com, with
their latest generation search engine and IT capabilities. We will now
be able to provide our corporate and non-profit partners with
well-executed Reliant marketing programs plus state-of-the-art
Internet technology, while at the same time driving traffic to our own
Internet portal and search engine."
Kevin Harrinton added, "We believe there are tremendous synergies
between TSIG.com's relationships, GeneralSearch.Com's technology, and
our ability to drive traffic and subscribers to GeneralSearch.Com.
Along with Affinity, we look forward to being the marketing engine
that helps propel their search engine. This business combination
should also afford an excellent long-term opportunity for Reliant
shareholders, because the `Search Engine /Internet Service Provider'
segment of the public market trades at much higher multiples."
According to Mel Arthur, Executive Vice President of Reliant, "The
original E-commerce business matrix is flawed because customer
acquisition costs often exceed revenues. We drive people to our Web
sites using our profitable half-hour shows so there is no additional
costs to get customers to our Web sites. We believe that our marketing
approach can yield tremendous results for General Search.com. We have
already integrated GeneralSearch.Com into our next show to sell
computers. Additionally, we will design a long-form commercial
featuring GeneralSearch.com that includes free Internet access. Our
strategy is to develop a program that drives subscribers to
GeneralSearch.com at virtually no customer acquisition cost. This
concept is unparalleled in our industry."
Tim Harrington, Reliant's President added, "I would add that there
is great synergy between this family of companies because of The
Affinity Group. As Reliant has moved into the marketing of high tech
products, it has become increasingly apparent that a higher level of
expertise in the inbound call center is directly proportional to a
higher percentage of completed orders. A significant part of the costs
in selling high tech products is that spent with telephone call
centers. This is a dream come true for us, to now have a first-rate
professional call center as part of our company, so we can interact
with the call center on a daily basis. Because of our 15 years of
experience in the direct response business, we believe that we will be
able to expand Affinity's customer base substantially."
About Reliant Interactive Media Corp.
Reliant Interactive Media Corp., based in Tampa, Florida, has
combined the marketing power of television and the personal computer
to sell cutting-edge products to consumers. Reliant produces long-form
commercial programming that drives customers to purchase products
through the convenience of the telephone or by using their Web
properties. They are successfully driving customers to their web site
on dollars that are already generating a profit from telephonic
responses. They have created a working business model that develops
customers for their Web properties at no direct acquisition costs,
because the production and the media costs are being covered
independently of Web site sales.
About GeneralSearch.Com., Inc.
GeneralSearch.Com, Inc., is a private company that was formed in
1998 to enhance the individual's Internet experience.
GeneralSearch.Com is an Internet portal with one of the most powerful
and accurate search engines on the Internet, with access to a database
of more than 100 million links. The search engine is family-oriented,
with filters that eliminate virtually all adult-oriented content,
while still providing the most accurate search results available on
the Internet.
GeneralSearch also has more than 900 Internet-based affiliates,
including Office Max, Stamps.com and other popular sites.
GeneralSearch offers free Internet access for life, free e-mail, fax,
integrated messaging and other services. GeneralSearch.Com is located
in West Chicago, IL. The company can be reached by e-mail at
info@generalsearch.com. The company's website is at
www.generalsearch.com.
About The Affinity Group LLC
The Affinity Group LLC, headquartered in St. Petersburg, Florida,
is an emerging affinity marketing company that specializes in database
mining, product development and sales. Affinity forms partnerships
with other successful companies in order to create synergies that
offer the best products to the most customers at attractive margins
for Affinity and its partners. The success of Affinity started with
certificate travel and club memberships, and has expanded into
affinity programs that serve a growing U.S. and international customer
base. Affinity currently markets its products and services in the
United States, Europe, Australia, Latin America and Canada.
About TSIG.com
Headquartered in St. Petersburg, Florida, TeleServices Internet
Group Inc., known as TSIG.com, has created its myCard programs to
benefit both the corporate and non-profit communities, as well as
consumers. TSIG.com forms myCard partnership agreements with national
corporations and non-profit organizations, and then works with those
partners to design revenue-generating programs that attract consumers
to their Web sites. The first myCard program was myMusicCard, which
enables consumers to purchase CDs and cassettes at the lowest
available prices. Similarly TSIG.com's myPhotoCard programs provide
low-cost film processing and Kodak Film, and the myPhoneCard programs
provide low-cost prepaid long-distance calling card services. For all
new myCard users, TSIG.com has recently arranged through General
Search.Com to provide free Internet access for life, free e-mail, fax,
integrated messaging and other features.
These customized marketing programs are intended to provide
recurring revenues to TSIG.com and its partners, and help develop
strong brand loyalty and awareness within target communities. TSIG.com
further enhances its myCard programs by providing customer service and
support with its Web-based call center and related services. With
non-profits, TSIG.com is engaged in "cause-related marketing" and has
a "volunteer sales force" of millions generating sales and driving
traffic to Internet sites for the lowest customer acquisition cost in
the business. TSIG.com is the national marketing partner of UCP, the
nation's largest non-profit health care organization and leader in the
disability field, which each year serves over 1 million people with
disabilities in the United States. TSIG.com's corporate web site is at
www.tsig.com and the myMusicCard web site is at www.mymusiccard.com.
This press release contains "forward-looking statements" within
the meaning of Section 27A of the 1933 Securities Act and Section 21E
of the 1934 Securities Exchange Act. Actual results could differ
materially, as the result of (1) competition in the markets for the
company's products and services, (2) the ability of the company to
execute its plans, (3) the availability of financing at favorable
terms, and (4) other factors noted in the company's public filings
with the SEC.
--30--jd/mi*
CONTACT: TSIG.com, St. Petersburg
Paul Henry, 727/897-4000
phenry@tsig.com
KEYWORD: FLORIDA
INDUSTRY KEYWORD: TELECOMMUNICATIONS INTERNET MUSIC E-COMMERCE
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