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RelationServe Media, Inc. Announces Agreement to Acquire SendTec Inc.; Deal Valued at $50 Million and Creates Leading Player in the Interactive Marketing Space
Aug 10, 2005 8:41:00 AM
Copyright Business Wire 2005
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 10, 2005--

RelationServe Media, Inc. (OTC BB: RSVM) a leading provider of permission-based e-marketing solutions, announced today the execution of a definitive agreement to acquire the assets of SendTec Inc., a wholly owned subsidiary of theglobe.com (OTCBB: TGLO). SendTec Inc. is one of the nation's foremost direct marketing agencies specializing in interactive advertising. The combined entity will operate under the RelationServe Media name and in 2005 is expected to generate pro-forma revenues and operating income in excess of $70 million and $10 million, respectively. In addition, RelationServe Media expects the acquisition to be accretive to 2005 earnings. On a pro forma basis, the combined companies would have generated over $47 million of revenue and over $3.5 million in operating income in 2004. The transaction is expected to close within sixty days. Consideration for this transaction is comprised of more than $50 million in cash and stock.

RelationServe Media also announced the following additions to its management team. Paul Soltoff, formerly the founder and CEO of SendTec Inc., will become the CEO of RelationServe Media and will also join the company's Board of Directors. Mr. Soltoff has thirty years of experience in direct marketing and is regarded as a pioneer in electronic direct marketing. Eric Obeck, formerly the President of SendTec Inc., will become the new President and Donald Gould Jr., formerly the CFO of SendTec Inc., will become the new CFO of RelationServe Media.

RelationServe Media's current CEO, Mandee Heller Adler, will continue to run the permission-based e-marketing business as President of RelationServe Access, a wholly-owned subsidiary of RelationServe Media. In addition, Ohad Jehassi, currently RelationServe Media's COO, has been named President of friendsand.com, another wholly-owned subsidiary of RelationServe Media. Warren Musser will remain as Chairman of the newly combined companies. The management changes take effect upon consummation of the acquisition.

"The acquisition of SendTec's physical assets, as well as the intellectual assets of its management team, positions RelationServe Media as a major player in the electronic marketing space," commented Warren Musser, Chairman of the Board for RelationServe Media. "Adding SendTec's digital advertising, direct response TV advertising and its offline-to-online tracking and reporting services to the suite of products already offered by RelationServe Media creates a dynamically synergistic fit that will expand the company's selling opportunities."

Paul Soltoff, founder and CEO of SendTec, Inc., commented, "The combined company is a powerhouse in the direct marketing industry providing a complete suite of integrated data services, new media technologies and full-service direct marketing acquisition capabilities to national advertisers." Mr. Soltoff went on to say, "In a multi-channel media world where the lines are blurring, RelationServe Media enables marketers to target media on a highly efficient and ROI-centric basis to maximize their marketing investments in the fastest growing advertising markets in the world: the Internet and Direct Response Television."

About RelationServe Media, Inc.

Headquartered in Fort Lauderdale, Florida, RelationServe Media develops and executes client-tailored online and offline marketing programs. As part of its full suite of marketing solutions, RelationServe Media owns and manages one of the industry's largest security-compliant email databases with over 175 million security- compliant email addresses and a total postal database of 180 million records for its client's direct marketing initiatives. RelationServe Media believes that it has the industry's largest and most accurate database for appending and enhancing customer database records with information on more than 85 million opt-in consumers. In addition, RelationServe Media owns a collection of over 60 web-mining properties that generate over 10 million online registration page views per month for client lead generation initiatives. For more information, visit http://www.relationserve.com.

About SendTec, Inc.

SendTec is a full service direct marketing company specializing in Internet customer acquisition and DRTV advertising. The company's strategy is to generate ROI-centric, scalable results. The company is technology enabled and 100% accountable to achieving objectives. The company has extensive multi-disciplinary skills in-house to help clients acquire, retain and build profitable, long-term relationships with their customers. SendTec provides comprehensive Internet Advertising and DRTV Services including performance-based Internet media DRTV media buying. The company has a full suite of Internet and DR tracking systems including the only Patent-pending DRTV to Internet tracking service. For more information visit the company's website: http://www.sendtec.com.

Safe Harbor Statement under the Private Securities Litigation reform Act of 1995: Forward-looking statements often are proceeded by words such as "believes", "expects", "may", "anticipates", "plans", "intends", "assumes", "will" or similar expressions. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. RelationServe Media's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. The statements that are not historical facts contained in this press release are "forward-looking statements" that involve certain risks and uncertainties, including, but not limited to, risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, the effectiveness, probability and marketability of such products, the ability to protect proprietary information, the impact of current, pending or future legislation and regulation on the electronic marketing industry, the impact of competitive products or pricing, technological changes, the effect of general economic and business conditions and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

Source: Relationserve Media, Inc.



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