Contact: Robert Bleckman, Director of Investor Relations
(818) 902-4397, [email protected]
GENESISINTERMEDIA.COM MAKES OFFER TO ACQUIRE FASHIONMALL.COM
LOS ANGELES, CALIFORNIA - DECEMBER 29, 2000-- GenesisIntermedia.com, Inc.
(NASDAQ: GENI) (Frankfurt: GIA) announced that it is filing a Schedule 13D with
the Securities and Exchange Commission, disclosing that it has acquired, through
various open market transactions, a 7% interest in the common stock of
Fashionmall.com (NASDAQ: FASH).
Furthermore, GENI has sent an offer, in the form of a letter sent to the
management and Board of Directors of Fashionmall.com, providing for the
acquisition of all of FASH’s remaining shares outstanding in a transaction
valued at $7 per FASH share, or at a premium of 170% over $2.59375 per share,
yesterday’s closing price of FASH’s common stock. The GENI offer also
exceeds by 100% an unsolicited offer disclosed yesterday to
Fashionmall.com’s management of $3.50 per share. Under the GENI proposal,
shareholders of Fashionmall.com would receive for each share of FASH (a) $2 in
cash and (b).29 shares of GENI common stock. Yesterday's closing price of GENI's
common stock was 17.375, with a market capitalization of $112m.
The merger of Fashionmall.com with Centerlinq would create one of the
highest-traffic, most innovative interactive shopping and advertising venues in
the US. Citing a high degree of synergy between Fashionmall.com and Centerlinq,
GENI's CEO Ramy El-Batrawi stated : We have an opportunity to significantly
strengthen the value of both businesses. We will accomplish this through
bringing together the talent, as well as the sales, marketing and software
development resources of both Fashionmall and Centerlinq. Combined
Centerlinq/Fashionmall traffic will deliver more value and impressions to our
partners, advertisers and shopping mall developers. The merging of Centerlinq
and Fashionmall will create one of the largest networks to serve both the brick
and mortar world and the Internet. We will also enjoy numerous opportunities to
cross-promote Fashionmall partners to Centerlinq members and shoppers in a
growing number of malls, and Centerlinq advertisers to Fashionmall users on
their home PCs. The offer is the first step in this plan, which will create
substantial value for both GENI and FASH shareholders.
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About Centerlinq
Centerlinq is a rapidly expanding network that's accessible via the World Wide
Web and through public access touch-screen Internet kiosks in shopping malls.
Currently reaching more than 35,000,000 consumers per month, Centerlinq attracts
a diverse audience with one of the largest loyalty shopping programs in the
U.S., providing coupons, directories and quick-touch access to high-profile
national advertising partners. The kiosks also provide information regarding the
preferences and interests of the consumers who utilize them, enabling businesses
to successfully target consumers likely to purchase their products and services
in the future.
Centerlinq was honored by Microsoft Corp. (NASDAQ: MSFT) with the 2000 Retail
Application Developer "RAD" award for "Best Retail Headquarters Application" in
the category of Core Retail Marketing, its second such honor within three years.
About GenesisIntermedia.com.
GenesisIntermedia.com.(GENI) is involved in several business lines revolving
around the marketing and advertising of consumer goods and services. The
Company's main business lines are (a) direct sales and marketing of consumer
products, (b) interactive advertising and data mining in retail malls under the
Centerlinq brand, and (c) car rentals for the replacement market under the Car
Rental Direct brand. The Company strives to create a portfolio of complementary
business activities that build on the Company's traditional strengths in
marketing consumer goods and services. GenesisIntermedia.com markets through
several channels including television, print, radio, telemarketing and retail
outlets. The Company believes that significant opportunities exist to build new
platforms around e-commerce activities. As such, the Company has recently
dedicated significant financial and human resources to develop and commercialize
its Centerlinq product.
This document contains certain forward-looking statements that are subject to
risks and uncertainties. For such statements, GenesisIntermedia.com claims the
protection of the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995. Actual events or results may
differ materially from those discussed in forward-looking statements as a result
of various factors discussed in GenesisIntermedia.com's Form 10(k) filed with
the Securities and Exchange Commission.
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