Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Military Resale Group, Inc. (MYRG) -- Ignore unavailable to you. Want to Upgrade?

To: mtnres who wrote (2)	8/15/2003 12:30:51 PM
From: mtnres	Read Replies (1) \| Respond to of 14

Military Resale Group Growth Defies Slow Economy; Product Line Expansion Improves Bottom Line COLORADO SPRINGS, Colo.--(BUSINESS WIRE)--July 15, 2003--Military Resale Group (OTCBB: MYRG), a distributor to the military commissary system, is making significant progress in its growth strategy. MYRG has achieved 24.1% year over year growth in total revenues in Q1 2003, despite the continued slow economy. The growth is largely as a result of the company's progress in its planned product line expansion -- the first phase of a two-fold growth strategy. MYRG's growth strategy also entails accretive acquisitions of competitive or complementary commissary distributors, which MYRG believes offer even greater growth potential. "We're very fortunate to be in an industry that historically has remained strong through a wide variety of economic conditions and military actions," said Ethan Hokit, president of Military Resale Group. "Our stable customer base of more than 13 million eligible military commissary patrons, with the majority of them being military family members, reservists and retired personnel, continue to buy food and package goods during economic downturns and military actions. They view the pricing discount of up to approximately 30 percent offered by commissaries as one of their key benefits and often travel twice the distance to use commissaries over retail grocery stores." Product Line Expansion Continues Since January, Military Resale Group has added approximately 30 SKUs from leading brands and manufacturers to its product line, most recently Mrs. Smith pies and cobblers and the new, hot-selling Snak King GuacaChips and other snack items. MYRG is currently in negotiations with a number of additional product manufacturers and distributors and plans to add numerous items to its product line by year-end. Each new product line is expected to improve MYRG's bottom line. The Company selects only best selling and/or unique products that fill a need for commissary patrons. An additional requirement is that the products provide favorable margins for MYRG. MYRG's new warehouse and cold storage facility has capacity to serve 2.5 times more volume for the bases in its region. Leveraging this capacity, MYRG expects that as new products are added, additional overhead costs will be minimal, allowing for increased profit margins. Accretive Acquisition Strategy To Fuel Future Growth MYRG plans to supplement its organic growth through the acquisition of complementary military distribution companies and related businesses that already have established contracts with leading manufacturers and strong customer relationships with military bases. "Our roll-up strategy is intended to yield new product inventory for all served bases, create economies of scale, and enable negotiation of better pricing due to expanded distribution," Hokit stated. "Leveraging our planned geographical spread, MYRG will be in a position to drive growth by offering major and regional manufacturers attractive opportunities to outsource or sell their military business to us. Since the military market is only a small portion of manufacturers' overall sales compared to the resources they have to devote to the U.S. Defense Commissary Agency (DeCA) regulation and procedure compliance, manufacturers have indicated a willingness to outsource this portion of their business to a specialist, like MYRG, that can serve the market more cost effectively." Overall, the company's growth strategy is expected to continue the 24% year over year revenue growth seen in first quarter 2003, while significantly enhancing shareholder value. About Military Resale Group, Inc. Military Resale Group, Inc. is a regional marketer and distributor of a wide range of foods and consumer packaged goods to U.S. military base commissaries, which are large supermarket-style stores operated by DeCA. MYRG resells frozen foods, canned and dry goods, meat, poultry, seafood, dairy products, beverages, paper goods, and cleaning supplies from consumer products manufacturers to commissaries, providing commissary patrons a cost savings of up to approximately 30%, a valuable benefit to military personnel and their families. With a focus on unique specialty products, MYRG targets both unfulfilled markets and new niche markets that demonstrate high-growth potential in local retail markets. MYRG leverages its management's 50 years of experience in the military resale market to service commissaries at six major U.S. military installations in Colorado, Wyoming and South Dakota. Headquartered in Colorado Springs, MYRG became a publicly held company in 2001 and believes it is one of the fastest growing companies in the military resale industry. Further information on MYRG is available at www.myrg.net or by calling (719) 391 4564. CONTACT: Military Resale Group, Inc. Ethan Hokit, 719-391-4564 Ehokit@militaryresalegroup.com