Image Globe Solutions CEO Issues Statement Regarding Its LA Auto Leasing Business Operations
TORONTO -- (MARKET WIRE) -- 02/01/06 --
Image Globe Solutions, Inc. (OTC: IGSS) CEO, Paul
Barry, issued a shareholder statement recently reviewing specifics and
unique aspects of the Company's auto leasing division, LA Auto Lease:
Dear Shareholders of Image Globe Solutions, Inc.,
There are currently millions of individuals in the United States and Canada
and with sub-prime credit profiles who cannot get accepted for an
auto-lease. The continuing growth in the number sub-prime candidates
constitutes the investment and operational rationale for anyone in the
sub-prime leasing business. It is a very profitable business, indeed, with
sub-prime lease rates as high as 30%. It is, however, not a business
without risk. I wanted to take moment and illuminate several systems we
have in place that enable our LA Auto Lease division to minimize
operational risk and increase overall return on invested capital, creating
value for you, the shareholder.
We have used our collective expertise in sub-prime auto leasing to create a
unique, unassailable and pre-emptive lease program that addresses the risks
associated within the sub-prime credit pre-owned car market, enabling us to
employ a business model rife with intrinsic risk-to-capital and turn it
into an outstanding business virtually devoid of risk.
While all our LA Auto Lease agreements include highly coveted features to
drivers, such as included vehicle maintenance and roadside assistance
throughout the term of every lease, we have incorporated unique features
that significantly reduce or completely eliminate the risks associated with
the business. Our "On Time Payment Protection" system, for instance,
incorporates vehicle-integrated operational override features tied to our
pre-payment system. In the event a customer fails to meet his or her
payment obligations, the leased vehicle automatically becomes inoperable
and thus easily recoverable.
Our insurance initiative guarantees coverage on all of our leased vehicles,
even for 'hard-to-insure' customers. Associated dealers will now be able
to overcome the major 'deal breaker' in concluding sales for sub-prime
credit customers. Not only will we be able to offer insurance coverage,
but more importantly, LA Auto Lease will be the only 3rd party leasing
company to offer financing of the high premiums associated with high-risk
coverage. The Registered Insurance Brokers of Ontario (RIBO), the oversight
body for all general insurance brokers and agents in Ontario, Canada, has
agreed to include the financing of these premiums with the lease. Risk is
further minimized since the Company will receive a pro-rata rebate for any
unused premium if it becomes necessary to cancel a lease for non-payment.
Simply put, our systems ensure regular proactive client payment and easy
vehicle recovery in the event of non-payment. Simultaneously, we can assure
vehicle insurance coverage and eliminate non-recoupable vehicle damage
risk, minimize assumed insurance premium-cost risks and generate
incremental revenue and earnings by financing those premiums. Together with
our low cost of capital and very high lease-through rates to customers we
will be able to effectively maximize operational profit margins and
significantly reduce risks traditionally associated with the sub-prime
leasing business.
I want to thank you, our shareholders, for your continued confidence and
look forward to presenting you with many healthy future returns on your
invested capital.
Sincerely,
Paul Barry, President
Image Globe Solutions, Inc.
About Image Globe Solutions, Inc
Image Globe Solutions, Inc. seeks out and selects private companies deemed
to have significant growth and cash flow potential and reasonable risk
profiles and acquires them at an early stage in their growth cycle. Image
Globe Solutions then brings all its resources to bear in helping to
optimize their growth while, at the same time, assisting and guiding their
development toward becoming publicly traded companies. This process
provides ongoing and increasing added value tied to an exit strategy which
facilitates the recovery of initial investment.
The company also will employ some of its resources to create additional
value through the development of a number of wholly owned and operated
divisions that offer high returns to shareholders. As one of its first
initiatives, the company has created a significant core business unit, LA
AUTO LEASE(TM) which specializes in used vehicle leasing for consumers
unable to obtain financing from traditional lending sources.
Forward-Looking Statements
This press release contains statements, which may constitute
"forward-looking statements" within the meaning of the Securities Act of
1933 and the Securities Exchange Act of 1934, as amended by the Private
Securities Litigation Reform Act of 1995. Those statements include
statements regarding the intent, belief or current expectations of Image
Globe Solutions, Inc, and members of its management as well as the
assumptions on which such statements are based. Prospective investors are
cautioned that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, and that actual
results may differ materially from those contemplated by such
forward-looking statements. The Company undertakes no obligation to update
or revise forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating results.
FOR FURTHER INFORMATION, go to the Company's website at:
www.i-globesolutions.com, or contact:
Brass Bulls Corp., Investor Relations at (866) 342.2700
or
Image Globe Solutions Inc. at (905)-825-1200.
Brass Bulls Corp.Investor Relations(866) 342.2700orImage Globe Solutions Inc.(905)-825-1200
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