Exhibit 99.1
For More Information:
TAG-IT PACIFIC, INC.
3280 South Hill Street
Los Angeles, California 90037
(323) 234-9606
CONTACT: Colin Dyne
Chief Executive Officer
Ronda Sallmen
Chief Financial Officer
For Immediate Release:
Tag-It Pacific, Inc. Announces the Signing of a Major Supply Contract With
Azteca Production International, Inc.
Three Year, $30 Million Contract is Immediately Accretive
LOS ANGELES--Jan. 4, 2001-- Tag-It Pacific Positioned for Strong Growth in
2001 Tag-It Pacific, Inc. (AMEX:TAG), the world's leading single-source provider
of trim to the apparel industry, is pleased to announce that the Company has
entered into a major agreement with Azteca Production International, Inc. that
leverages the Company's Tag-It-Turnkey (TM) business-to-business e-commerce
platform.
Colin Dyne, Chief Executive Officer of Tag-It Pacific said, "We are
extremely pleased to add Azteca Production International, one of the world's
largest manufacturers of denim apparel, to our list of customers. Not only does
this contract validate our operating model, but it immediately adds substantial
revenues and incremental profit." With the three-year agreement with Azteca
Production International, Inc., the Company anticipates volume to be
approximately $15 million per annum with a minimum contractual guarantee of $10
million per annum.
As a term of the agreement, Tag-It Pacific will purchase a portion of
existing trim inventory from Azteca. This inventory was acquired to take over
the trim procurement process from Azteca and will be used to supply Azteca's
current production over the near term. The inventory was purchased with the
issuance of one million shares of Tag-It Pacific's restricted common stock.
These restricted shares were issued at $4.00 per share, the market price of the
Company's common stock on the closing date of the transaction. Mr. Dyne
concluded, "This deal considerably strengthens the profile of Tag-It Pacific and
cements our position as the world's leading single-source provider of trim for
the denim and twill industry. We are poised for an excellent year of growth both
financially and strategically."
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About Tag-It Pacific
Tag-It Pacific is a single-source provider of complete brand identity
programs and products as well as Web-based distribution and logistics systems to
manufacturers of fashion driven apparel and to the licensed consumer products
industries. The Company designs, produces and distributes woven and leather
labels, paper hanging and bar-coded tags, metal jeans buttons and sewing thread,
and zippers and injection-molded boxes. Tag-It Pacific also designs and/or
manufactures products for a variety of major brand and private label oriented
companies including Tarrant Apparel Group, Calvin Klein, Tommy Hilfiger, A/X
Armani Exchange, Warner Bros., Express, Lerner and Swank, among others.
Tag-it Turnkey is the Company's proprietary business-to-business e-commerce
system. This system is a complete supply-chain management system that allows the
Company to provide its customers with a customized, comprehensive system for the
management of their brand identity programs. Tag-it Turnkey provides customers
with assistance in their ordering, production, inventory management and
just-in-time worldwide distribution of their trim and packaging requirements.
Traditionally, manufacturers of apparel products have been required to operate
their own apparel trim departments, which require a significant amount of
infrastructure to coordinate the buying of trim products from a large number of
vendors. Inefficient trim departments result in production delays. Tag-it
Turnkey helps eliminate a manufacturer's need to maintain a trim department in
an efficient and cost-effective manner.
Forward-Looking Statement Disclosure
With the exception of the historical information, the matters discussed
above include forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities Act of
1934, as amended. All forward-looking statements are subject to a number of
risks and uncertainties, including the risk of a softening of customer
acceptance of the Company's products, risks of introduction by competitors of
the Customer of systems with similar or better functionality to Tag-It Turnkey,
pricing pressures and other competitive factors, the unanticipated loss of one
or more major customers, unpredictability of future revenues and cash flow
requirements, potential fluctuations in quarterly operating results,
seasonality, risks associated with system development in connection with Tag-It
Turnkey, management of potential growth, and risks of new business areas,
business combinations, and strategic alliances. These and other risks are more
fully described in the Company's filings with the Securities and Exchange
Commission including the Company's most recently filed Annual Report on Form
10-KSB and Quarterly Report on Form 10-QSB, which should be read in conjunction
herewith and may be obtained from Tag-It Pacific's Investor Relations
Department. The Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any statement herein or to reflect
any change in the Company's expectations or any change in events, conditions or
circumstances on which any such statement is based.
