EXHIBIT 99.1
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LEISUREPLANET HOLDINGS ANNOUNCES CLOSING OF SALE
OF SOUTH AFRICAN SUBSIDIARY
Article I Company completes Sale of South African Assets for
Approximately $34 Million
Boca Raton, Florida - October 12, 2000 - Leisureplanet Holdings, Ltd. (Nasdaq:
LPHL) (the "Company") today announced that the sale of the assets of its South
African subsidiary, First Lifestyle Holdings ("Lifestyle"), has been completed.
Final regulatory approval for the sale was received from the South African
Competitions Commission today.
Under terms of the transaction, the Company will receive approximately $34
million in cash for its 51% interest in Lifestyle.
The Company anticipates utilizing the proceeds for the repayment of debt,
acquiring stakes in other companies and other general corporate purposes.
"With the closing of the Lifestyle sale, we begin a new chapter. We are now
fully divested from our South African operations and are aggressively seeking to
rebuild value for all our shareholders by focusing on acquiring controlling
stakes in promising Internet and technology related companies," said Clive
Kabatznik, Chief Executive Officer of the Company.
The Company's pro-forma June 30, 2000 balance sheet reflecting the sale shows
approximately $40 million in assets of which $27.3 million is cash, and
approximately $17.2 million in liabilities of which approximately $14 million is
long-term debt. The Company's net assets therefore are in excess of $21.5
million, or approximately $2.30 a share.
The statements which 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, negotiations resulting in
a definitive agreement, development of new products, regulatory approval
processes, the impact of competitive products or pricing, unpredictability of
patent protection, technological changes, the effect of economic conditions and
other uncertainties detailed in the Company's filings with the Securities and
Exchange Commission.
For more information contact:
Graham Cohen
Leisureplanet Holdings 917-945-4889
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