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Technology Stocks : VVTV - "Home Shopping Network" of the Internet -- Ignore unavailable to you. Want to Upgrade?

To: BANCHEE who wrote (229)	4/12/1999 6:45:00 PM
From: Cleo	Respond to of 350

News! ValueVision International, Inc. Receives $10 Million Contingent Payment from Paxson Communications PR Newswire - April 12, 1999 16:52 Company Reports Television Home Shopping Operations Maintaining Growth Momentum MINNEAPOLIS, April 12 /PRNewswire/ -- ValueVision International, Inc. (Nasdaq: VVTV), an integrated electronic and print media direct marketing company, today announced that its television home shopping operation is maintaining its growth momentum and that the Company has received a contingent payment of $10 million relating to ValueVision's sale of a television station and two low-power television stations to Paxson Communications Corporation (Amex: PAX) in March 1998. As a result, ValueVision will recognize a pre-tax gain of $10 million in the first quarter of fiscal year 2000. Television Home Shopping Operations Maintaining Growth Momentum "Our television home shopping operations' performance is continuing its upward sales trend going into fiscal year 2000," said Gene McCaffery, Chairman, Chief Executive Officer and President of ValueVision International. "Based on preliminary data for February and March, our television home shopping business is maintaining, and could even potentially exceed, the sales increases it has produced during the prior three consecutive quarters of fiscal 1999. Contingent Payment of $10 Million from Paxson Communications The contingent payment of $10 million relates to ValueVision's sale of its KBGE-TV, Channel 33, television station in Seattle, Wash., and two low-power television stations in Indianapolis, Ind., and Portland, Ore., to Paxson Communications in March 1998. The contingent payment of $10 million finalizes the agreement between the two companies. "The gain from this transaction will enhance our liquidity and further strengthen our balance sheet, which had cash and short-term investments in excess of $46 million and virtually no debt as of the end of our fourth quarter of fiscal 1999. We believe this enviable position will provide us with significant financial flexibility for our new growth initiatives in e-commerce, potential acquisitions, additional strategic alliances and other opportunities that we are developing," concluded Mr. McCaffery. Under the terms of the original agreement, Paxson Communications paid approximately $25 million to ValueVision in March 1998. It also agreed to pay ValueVision an additional $10 million when the Seattle station, which at the time operated at reduced power from downtown Seattle, relocated from downtown Seattle and increased its transmitter/antenna power to a level at or near its licensed full power. Paxson Communications Corporation owns and operates the nation's seventh and newest broadcast network. With its nationwide broadcast television and cable distribution system, Paxson airs PAX TV, the national family entertainment network. ValueVision International, Inc. is an integrated electronic and print media direct marketing company, and operates a television home-shopping network and multi-book catalog operation. The Company offers live programming 24 hours per day, 7 days a week. As of March 31, 1999, approximately 22.2 million homes were able to receive ValueVision's programming of which approximately 10.2 million homes on a full-time basis and another 12.0 million on a part-time basis. In addition, the Company operates several direct mail operations and an Internet shopping website (www.vvtv.com). The Company's shares are traded on the Nasdaq Stock Market under the symbol VVTV. (Note: The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this news release contains statements that are forward-looking, such as statements relating to the continued upward sales performance of the company's television home shopping operations, the company's success with its e-commerce initiatives and the continuing success in developing new strategic alliances. There are certain important factors, such as consumer spending and debt levels, interest rates, competitive pressure on sales and pricing and the maintenance of cable home distribution that could cause results to differ materially from those forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including the possibility that the company's television home shopping sales will not continue to increase and that e-commerce will not be successful. For more information on the potential factors that could affect the Company's financial results, investors should refer to the Company's recent filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.) SOURCE ValueVision International , Inc.