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Microcap & Penny Stocks : AREE - Formerly TVSI -- Ignore unavailable to you. Want to Upgrade?

To: ROSARIO who wrote (5071)	12/3/1998 7:29:00 PM
From: Kenny Low	Read Replies (2) \| Respond to of 6528

News Out biz.yahoo.com Thursday December 3, 6:49 pm Eastern Time Company Press Release Arete Industries Inc. Announces Second-Quarter Results Ended Sept. 30, 1998 BOULDER, Colo.--(BUSINESS WIRE)--Dec. 3, 1998--Arete Industries Inc. (OTC:AREE - news) announced its operating results for the second quarter ended Sept. 30, 1998. From selected financial data contained in its quarterly report on Form 10-QSB recently filed with the Securities and Exchange Commission, operating revenue for the quarter ended Sept. 30, 1998 increased 5 percent to $531,624 from $506,186 for the same period last year. While sales increased, the gross margin declined from 18 percent of sales to 26 percent of sales. Overall, the company's net loss increased slightly, from $41,281 (8.2 percent of sales) to $68,863 (13 percent of sales). Arete President and Chief Executive Officer Tom Raabe explained: ''The second-quarter results are not indicative of the company's underlying operations nor of their potential. Second-quarter operating results are distorted by extraordinary legal, accounting and corporate compliance costs incurred during the period and associated with shareholder actions, SEC filings and expenses associated with the shareholders meeting held Sept. 1, 1998. ''We have dispensed with the shareholder lawsuit and installed a new board of directors with a clear mandate from our shareholders; we have stemmed operating losses and caught up on certain long outstanding corporate compliance and operating filings and expenses; we have raised working capital and completed certain of the prerequisites to properly restructure and reconfigure the company; and we are now able to seriously pursue a number of very exciting business opportunities on behalf of the company.'' Effective Oct. 1, 1998, Arete transferred all its direct mail and commercial print operations to a wholly owned subsidiary named Global Direct Marketing Services Inc. Raabe continued: ''This change advanced the turnaround, and by instituting cash management and other management information systems, we can monitor and react to operating performance of the subsidiary independently of the corporate-level compliance and administration expenses. With these advances in place, we are now developing and pursuing marketing-related opportunities with a goal of immediately increasing operating revenues and profits.'' Fred Boethling, Arete chief financial officer, explained: ''After extracting corporate overhead, the Global Direct subsidiary's operation was very near to break even: as an operating unit, the direct mail and commercial print operation showed a loss of only $11,600 on operating revenue of $1,115,405 (1 percent of sales) for the six-month period ended Sept. 30, 1998. Boethling continued: ''We now know the magnitude and many of the causes of the problem with the company's operations, and they are very manageable. Armed with this information, we are redoubling our efforts to pare costs, rebuild the core direct mail business, and identify and develop new markets.'' Raabe went on to explain: ''The restructuring is consistent with our plan to identify and develop new business opportunities outside direct mail advertising as well. With the advancements made to date, the company is now active in exploring and developing a number of exciting new strategic relationships and business opportunities.'' The recent hiring of Stock Enterprises as the company's public and investor relations firm to assist in communicating the company's story to its shareholders and to the financial markets was an important first step in the process of broadening Arete's business focus and building shareholder value. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein that are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. Contact: Stock Enterprises James Stock, 702/837-6125 ext. 124 or 127 702/837-6135 (fax)