VTCO to launch new Internet action site:
Virtual Technology to Launch Internet Auction Site; VTC To Start Auction Site On-Line With Auction Universe
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 11, 1999--Virtual Technology Corporation (OTC BB:VTCO) (http://www.virtual-world.com), a premier technology reseller, announced an alliance with Auction Universe, a division of Classified Ventures, to auction VTC products via the Internet.
Auction Universe whose media properties include more than 140 newspapers, as well as magazines, radio and television stations, collectively have a daily circulation of over 19.5 million. Entering the market with companies such as eBay (EBAY), Ubid (UBID) and On-Sale (ONSL), the Auctions will be marketed via VTC's E-Commerce Internet site vtcoauctions.com) and the Auction Universe Network (http://www.aun.com). The VTC auction site will be promoted by Auction Universe and its affiliates.
Auction Universe is owned by Classified Ventures a Times Mirror Company (NYSE:TMC), and provides online auction services through a network of more than 140 newspapers and media properties. Classified Ventures LLC is a company formed by eight leading media companies: Central Newspapers Inc., Gannet Co. (NYSE:GCI), Knight Ridder (NYSE:KRI), The McClatchy Company, The New York Times (NYSE:NYT), The Times Mirror (NYSE:TMC), Tribune Company, The Washington Post Company (NYSE:WPO).
"We see this as excellent opportunity to broaden our reach to the consumer and to provide the Internet consumer with more diversity and brand name products at bargain prices. We see many product buys where there may not be enough depth or inventory for our on-line store but these will be great items to list in the Auction. Our planned merger with Graphics Technologies, Inc. (GTI) will also compliment the Auction segment of our business nicely," said Greg Appelhof, President/CEO of VTC.
As part of the two year agreement with Auctions Universe, the Companies will exchange links from their web sites and VTC products may be ordered directly through the Auctions Universe Network (AUN). AUN's transaction processing systems will process the orders and VTC's systems will fulfill the orders received via the alliance. Auction Universe features leading edge technology as well as consumer protection programs, such as Bid$afe(TM), which provides a money back guarantee on all transactions, protecting consumers from fraudulent transactions. VTC will provide featured products for the Auction site from its inventory of over 40,000 products featuring the latest in computer hardware and software from over 1200 vendors. In addition, VTC will provide "special buys" for products not available in its on-line store www.virtual-world.com.
ABOUT AUCTION UNIVERSE
Auction Universe is a pioneer in bringing the online auction process to classified advertising and sales. It is comprised of the Auction Universe Website and a network of other specialty focused Websites and major newspapers for buying and selling. Auction Universe also provides buyers expert information from many of America's leading specialty and collectibles publications. It is the only online marketplace where over 6,000 local area and international interest groups buy and sell in a secure and trustworthy environment. It uniquely provides consumers with an information-rich, convenient, fast and entertaining experience.
ABOUT VIRTUAL TECHNOLOGY CORPORATION
Virtual Technology Corporation (OTC BB:VTCO) is a publicly held Minnesota based company with offices in Minneapolis, MN, incorporated since February 1996. VTC is a rapidly growing online retailer of computer hardware and software products. The company's strategy is to become the "Premier WWW Site for Speed, Power, and Graphics" through its focus and marketing strategy, depth of market selection, competitive pricing and high quality content.
Statements in this Press Release that are not purely historical are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding VTC's expectations, hopes, beliefs, intentions or strategies regarding the future generally, VTC's growth strategy, future sales and anticipated trends in VTC's business. All forward looking statements included in this Press Release are based on information known to VTC on the date hereof, and VTC assumes no obligation to update any such forward looking statements. It is important to note that actual results could differ materially from those in such forward looking statements as a result of a number of factors, most of which are out of the control of VTC, including, but not limited to, VTC's early stage of development, its lack of profitability and cash flows and competition for the sale of hardware and software products both on and off the internet. As to the proposed GTI acquisition, there is no assurance that VTC will successfully negotiate a definitive agreement, obtain the necessary acquisition financing, close the transaction, retain GTI's key personnel and successfully integrate GTI's business into VTC's operations.
CONTACT:
Virtual Technology Corporation
Ken Israel, 612/915-1122
keni@vamail.com
or
Makenna, Delaney & Sullivan
Robert Sullivan, 760/931-2500
info@venturefinance.com
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