Brandmakers Sells Zoom Communications Division and Restructures Debt
Other Divisions Profitable
Suwanee, Georgia April 9, 2002 Brandmakers Inc. (OTC BB: BMKS) announces the sale of the assets of the ZOOM Communications Division to NTN Communications, Inc. (AMEX: NTN). In addition to the transfer of the division's assets and liabilities, Brandmakers receives $20,000 of restricted common shares of NTN Communications, Inc. We view the sale as a win-win activity relieving Brandmakers from the responsibility of continuing losses as well as significant liabilities and the division is a good fit for NTN. Russ Ford, President, and Sal Veni, Chief Operating Officer resigned their positions with Brandmakers to manage the division for NTN. "We wish them well along with all ZOOM Communications personnel" said Brandmakers CEO Geoff Williams.
Additionally, Brandmakers restructured the outstanding debt of $518,400 with Multi-Page Communications, reducing the note to $100,000 with $5,000 down and $95,000 amortized over five years at 9% interest with a balloon payment at the end of one year. The down payment and the first monthly payment have been made. "Multi-Page recognized our financial situation and we appreciate their cooperation. However, the full amount less payments will remain on the balance sheet until the final payment is made," advises Board of Directors member Bob Palmquist. "All payments must be made on a timely basis with a thirty day grace period."
"The Internet Division commenced renewal income through subscriptions to WebBox in the month of February, 2002 which will continue and be quite positive for cash flow," advises Palmquist. "February and March have been good cash flow months for the division and April is projected to provide solid income as well, which will help considerably with our financial situation."
"Gamosity, the games and vending division, delivered 100 Viavend dispensing machines in March and early April, 2002. Also, there has been a recent demand for a Phone Card-Sweepstakes dispensing machine with 30 machines delivered in March and an additional 45 machines being assembled for delivery in April. There are other orders pending as well and three cell phone machines were sold during the month of March," advises Williams.
This press release contains forward-looking statements relating to the sale of assets to NTN Communications, Inc. and expectations regarding the divisions, and other statements which are subject to various risks and uncertainties including competitive factors and the availability of capital to finance growth.
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