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To: Mr Metals who wrote (3349)	3/4/1999 8:07:00 AM
From: Rande Is	Read Replies (1) \| Respond to of 9115

[PLCO] Reuters . . .Play Co takes low-priced toy sales to the Internet Wednesday March 3, 7:41 pm Eastern Time NEW YORK, March 3 (Reuters) - Play Co. Toys and Entertainment Corp.(OTC BB:PLCO - news) , joining the online retailing craze, said Wednesday it launched a Web site to sell brand-name toys at wholesale prices. The site (www.toyswhypayretail.com) will offer wholesale prices on mostly-brand-name toys that are overstocked, on sale or have not move off the shelves in Play Co.'s 25 stores. Play Co.'s shares jumped over 32 percent on the news, closing 9/16 higher at 2-5/16 in afternoon trade on the over-the-counter bulletin board. The site, the first of two the company is planning, also offers free shipping and handling on orders over $50, with an additional 10 percent discount for a limited time following the launch. ''If you're a grandmother and have a lot of kids to shop for this is the place to go,'' said Sanjay Sabnani, a company spokesperson. Play Co. initiated the first wave of its Web strategy in order to more effectively market and sell discounted or discontinued items, as well as to stock its retail outlets with a larger inventory of high-end merchandise. ''It's a way to help move our inventory without offending our vendors or cheapening the value of their products and our stores'' he said. ''We're not a company that can afford to spend $50 million on Web strategy,'' Sabnani said. ''We're trying to be progressive, but we're a physical store retailer. And so far the company is doing better than it has in the past.'' In early February, the company reported a net income of $1,498,634, or $0.32 per share, for the third quarter ending Dec. 31, 1998, compared to $881,666, or $0.21 per share, for the same quarter of the previous year. Third quarter revenues rose to $14,715,952 in 1998 from $10,396,440 in 1997. The second site (www.playco.com) will feature all of the company's in-store inventory, as well as high-demand merchandise that cannot be physically stocked in its small, mall-based stores and certain exclusive collector's items. The company is set to launch the second site in April 1999. In addition to the specialty Web site, Play Co. will also unveil Internet stations at so-called interactive kiosks located in various retail locations. Sabnani said the first site (toyswhypayretail.com) will remain a cost-effective, bargain site with little advertising. To the extent it does advertise on the site, PlayCo.com will feature ads from affiliated companies. ''The advertising won't necessarily be to boost revenues,'' he said, stressing Play Co.'s overall Web strategy is being done on a cost-effective basis. ''We're not worrying about bringing in 20 cents a click. We're going to promote our sites, but we're taking it one stage at a time,'' Sabnani said. The Play Co.'s 25 toy stores are located in California, Arizona, Nevada, Texas, Illinois and Michigan. The company said it has signed leases to open eight new stores in 1999.