Portfolio stock ADRN- News is out-
LOS ANGELES--(BUSINESS WIRE)--April 30, 1999--Adrenalin
Interactive Inc. (NASDAQ:ADRN) announced today that it has signed the
Definitive Agreement to acquire McGlen Micro, Inc. a leading Southern
California based E-Commerce company.
Adrenalin will issue new common stock to McGlen equal to
approximately 87% of the combined companies outstanding stock on a
fully diluted basis.
McGlen Micro, founded in 1996, is a global internet retailer
(http://www.mcglen.com) of computer hardware and peripheral products
to the consumer, small office/home office (SOHO), and corporate
markets. At the current time, McGlen has over 40,000 stock keeping
units (SKUs) and over 120,000 customers. Repeat customers generated
over 35% of sales during the first quarter of 1999 with the average
repeat order size reaching approximately $310 versus $240 overall.
McGlen's 1998 unaudited revenues were approximately $16.3 million with
a small profit. Based on McGlen's unaudited first quarter revenue of
approximately $5.4 million, George Lee, CEO of McGlen Micro, is
projecting that 1999 revenue could rise to over $30 million, an 86%
increase over the prior year.
McGlen operates in a competitive space that has attracted such
successes as: Cyberian Outpost (NASDAQ:COOL), Beyond.com (NASDAQ:BYND)
and Onsale Inc. (NASDAQ:ONSL). International Data Corporation, a well
respected market research firm, estimates that the online market for
computer products and software, will grow from approximately $2.8
billion in 1998 to over $11 billion in 2002; a compound annual growth
rate of roughly 40%.
McGlen's e-commerce site is designed to offer convenience, ease
of use and security for the online shopper and fully integrates all
aspects of retail transaction processing into a user-friendly,
automated infrastructure.
George Lee, McGlen Micro's CEO, stated, "McGlen Micro's vision is
to be the leading company in the online retailing, or e-commerce, of
computer hardware, software and other category leaders in a variety of
niche markets. As a result of the intended merger with Adrenalin,
McGlen will have the resources to pursue our strategy for growth and
profitability."
Jay Smith, CEO of Adrenalin, said, "In a relatively short period
of time we have accomplished a significant milestone in Adrenalin's
corporate life. By combining with McGlen Micro, Inc. our shareholders
will not only benefit from the internal progress that we have made but
also be able to participate in one of the fastest growing business
opportunities available today - E- Commerce. The Adrenalin/McGlen
merger will combine the special infotainment talents of Adrenalin with
the growth prospects of online retailing, an unbeatable combination in
my estimation."
For additional information regarding the merger, please refer to
the Form 8-K filed with the Securities and Exchange Commission.
McGlen Micro, Inc. is a private company that provides E-Commerce
services and products for a wide range of computer related categories.
McGlen Micro has a unique consumer interface and software technology
that is popular with mass-market consumers. In February 1999, McGlen
Micro acquired a similar company, Access Micro Inc., dba AMT
Component, Inc. (http://www.accessmicro.com). The offices are located
in Tustin, CA.
Adrenalin Interactive Inc. develops and licenses console video
games for Sony, Nintendo and Sega consoles, entertainment titles for
personal computers, and Internet "play-to-win-cash" games for the
World Wide Web.
The statements set forth above with respect to the proposed
acquisition, the benefits thereof and the potential growth of the
combined company are forward looking statements within the meaning of
that term in the Private Securities Litigation Reform Act of 1995. As
such, they are inherently uncertain and should not be unduly relied
upon. As to the consummation of the proposed acquisition,
uncertainties include the ability of the parties to negotiate related
agreements, completion of satisfactory due diligence by both parties,
the receipt of approval by Adrenalin's shareholders, the satisfaction
of other conditions to closing and other uncertainties normally
associated with the consummation of business acquisitions. As to the
hoped for benefits of the acquisition and potential future growth,
uncertainties include the ability to successfully integrate the
companies' businesses, technologies and management, the availability
of sufficient capital to expand the businesses, customer acceptance on
new products, competition and other uncertainties associated with
integrating businesses after acquisitions and growth.
--30--nmb/ny*
CONTACT: McGlen Micro, Inc., Tustin, Calif.
George Lee, CEO
949/851-8078, 949/851-0251 fax
mcglen.com
or
Adrenalin Interactive Inc., Los Angeles
Jay Smith, CEO
310/821-7880, 310/821-4251 fax |
