BMKS:
Press Release
SOURCE: NTN Communications, Inc.
NTN Communications Acquires Zoom
Communications, Former Brandmakers, Inc. Division
- Acquisition to grow NTN Customer Base, Launch NTN Entry Into
Hospitality Wireless Paging and Gift/Loyalty Card Segment -
CARLSBAD, Calif., April 8 /PRNewswire-FirstCall/-- NTN Communications, Inc.
(AMEX: NTN - news), the world's largest out-of-home interactive television network,
announced today that it has acquired the assets of ZOOM Communications, a young,
technologically advanced innovator in the growing restaurant wireless paging industry, from
Brandmakers, Inc. The acquisition of ZOOM's state-of-the-art line of on-site paging
systems, electronic gift cards, loyalty programs and electronic data-managed comment
cards expands NTN's products and services beyond its interactive entertainment focus and
extends its client relationships to an additional 2,000 restaurant doors and another 50
chains -- 10 of which are in excess of 100 units. ZOOM Communications will now become
NTN Wireless Communications, a wholly owned subsidiary of NTN Communications,
reporting as part of the NTN Network Division.
The ZOOM Division of Brandmakers, Inc. reported revenue in excess of $2 million in its
most recent fiscal year. Under terms of the Asset Purchase Agreement, NTN issued
restricted stock to Brandmakers and assumed selected liabilities. In addition, by way of a
separate agreement, NTN entered into 2-year employment contracts with ZOOM's two
principals, Sal Veni, COO and Russ Ford, president, to join NTN as Vice President of
Operations and Vice President of Sales, respectively, in the NTN Wireless
Communications division. ZOOM Communications and its Georgia-based headquarters
will be folded into a newly formed wireless subsidiary of NTN and become a regional
office and distribution center for NTN. In consideration for the purchase, NTN assumed
$314,000 in liabilities from Brandmakers, Inc. and issued an aggregate of $300,000 in
restricted common stock to all parties. The company believes earnings from this new NTN
wireless unit will be accretive.
``The acquisition of ZOOM Communications fits squarely into our objective to be the
leading provider of interactive communication and entertainment services to the industry,
and provides a number of synergies to NTN. These include effectively leveraging our
existing customer base by broadening product and service offerings as well as expanding
brand awareness and business opportunities into a wider range of out-of-home hospitality segments,'' said Mark deGorter,
president/COO of the NTN Network. ``NTN's entertainment knowledge-base and longevity in the industry combined with
ZOOM's innovative wireless products, stored-value gift card and loyalty programs will lead to fully integrated, front of the
house solutions giving our clients the value-added services they are looking for to stay competitive.''
ZOOM Communications' key products and services include: NexCall, the most advanced guest paging coaster system on the
market; E-Gift, a hospitality specific gift and loyalty card program created through an exclusive relationship with Datamark
Technology, that replaces existing paper gift certificate programs; and SurveyCheck(TM), a ``Touch-Screen'' Electronic
Comment Card that takes the place of old paper comment cards and secret shopper services while giving restaurants
real-time data to monitor and improve service.
In addition, the acquisition enhances ZOOM's ability to offer the most advanced guest paging systems, wireless products and
stored-value gift and loyalty card programs to more than 3,600 NTN locations in North America including chains such as
Applebee's, Bennigan's Grill & Tavern; Buffalo Wild Wings; Damon's International; as well as T.G.I. Friday's and its largest
franchisee group, Main Street & Main, Inc.
ZOOM's stored value gift/loyalty card concepts will be integrated with NTN's existing 1.1 million frequent player database.
Currently associated with brand name retail and restaurant locations such as J. Crew, Brooks Brothers, Ruths' Chris and
Cafe Enterprises, the ZOOM program will provide strong value to NTN restaurant partners and bring meaningful benefits to
dedicated NTN players. The combination of repeated game play and food and beverage purchases will build the basis for a
comprehensive player loyalty program.
``NTN's 17 year history in the restaurant business, and solid experience in entertainment-based games create product
placement opportunities and foster the development of hybrid tools that are beneficial for customer retention previously
unavailable to ZOOM,'' Veni said. ``NTN's national sales and field marketing infrastructure now provides the ability for rapid
deployment of ZOOM products, along with a broader portfolio of products and services to offer both new and existing
customers,'' said Ford.
About NTN Communications, Inc.
Based in Carlsbad, CA, NTN Communications, Inc. (AMEX: NTN - news) is the parent corporation of the NTN
Network® division and Buzztime Entertainment, Inc., a subsidiary. Buzztime produces BUZZTIME(TM), the interactive
television trivia channel, and live sports prediction games such as QB1® from its interactive broadcast studio. Buzztime's
partners include: Scientific-Atlanta, Microsoft WebTV, AT&T Interactive Television, Sun Java TV, Airborne Entertainment,
and Yahoo! The NTN Network is the largest out-of-home interactive television network in the world. Through NTN's Digital
Interactive Television technology, the NTN Network broadcasts entertainment and sports programming engaging over 1.7
million players and reaching over 6 million unique consumers each month in approximately 3,600 North American hospitality
locations such as TGIFriday's, Damon's, BW3, Bennigan's and others.
About ZOOM Communications
ZOOM Communications is one of the top three developers of guest and server paging systems to customers such as
Outback Steakhouse, Applebee's, Ruby Tuesday, Pizzeria Uno's, Logans Roadhouse and O'Charley's. As the company has
grown ZOOM has moved into other markets, today selling communications systems to hospitals, churches, dental offices,
auto dealerships and day spas.
This release contains forward-looking statements, including statements relating to the closing of the acquisition, future plans
for the stored value/gift card product and frequent player program, future earnings, expected synergies, expansion of
customers, future services, which are subject to risks and uncertainties including the risks of integrating ZOOM's operations,
changing economic conditions, product demand and market acceptance, the impact of competitive products and pricing, and
other factors detailed in the Company's Securities and Exchange Commission filings, including NTN's Annual Report on
Form 10-K for the fiscal year ended December 31, 2001. NTN disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: NTN Communications, Inc. |
