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can you PredictIt!
WWW.PREDICTIT.COM
SYMBOL: PRIT
For Immediate Release
September 19th, 2000
Predict It and Hollywood Stock Exchange Announce Plans to Merge;
Announce Proposed $10 Million Cash Infusion
Combined Entity to be named "HSX" and to Focus on Becoming Leading Interactive
Entertainment Company
Transaction includes a proposed investment of $10 Million from SBS Broadcasting,
Citigroup Investments Inc., Dawntreader Fund I LP, Robert H. Lessin, Verus
International, Keystone Venture Capital, Commonwealth Associates, Genesys
Angelbridge, and Hollywood Stock Exchange Co-Founders Michael Burns
and Max Keiser
NEW YORK, NY and LOS ANGELES, CA - - September 19, 2000 --Predict It Inc., (OTC
BB: PRIT), a leading provider of interactive prediction applications targeting
the online sports and financial markets, announced today that it has entered
into a letter of intent to merge with Hollywood Stock Exchange, an online
entertainment company best known for its patented and highly-popular
entertainment virtual stock market. The combined company will be known as "HSX"
and will, upon completion of this transaction, have a user base of more than one
million unique registered users from over 180 countries around the world.
In addition, Predict It announced that as part of the proposed merger
transaction, a group of institutional investors have also signed the letter of
intent signifying their intention to invest $10 million in new equity capital in
the combined company upon the merger. The investor group includes SBS
Broadcasting SA, Citigroup Investments Inc., Dawntreader Fund I LP, Robert H.
Lessin, Verus International, Keystone Venture Capital, Commonwealth Associates,
Genesys Angelbridge Fund, and Hollywood Stock Exchange co-founders Michael Burns
and Max Keiser.
"This combination brings together two of the leading brands in the emerging
interactive entertainment space," stated Andrew Merkatz, CEO of Predict It.
"Through HSX, we will now be able to deliver highly interactive consumer
entertainment and related business information services across the categories of
film, music, sports, and finance. The two businesses are extremely complementary
in that they are both founded upon a singular concept of aggregating, enhancing,
and redistributing valuable community-generated content."
"The combined company will be well positioned to capitalize on future
opportunities in the digital media arena," stated Andy Kaplan, Chairman and CEO
of Hollywood Stock
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Exchange, who also announced that he will be leaving HSX at the conclusion of
the merger.
"This merger is clearly a case of one plus one equals three" stated Michael
Burns, co-founder of Hollywood Stock Exchange. "Our operating strategy is to
move aggressively to reduce the combined company's costs and to take advantage
of the improved operating leverage created by this transaction. We believe that
the current climate for Internet-related businesses creates unparalleled
opportunities for well-managed companies with solid business plans. Our goal is
to reach positive cash flow quickly and to selectively expand the business."
"The combination of these two business models offers the potential for
significant revenue opportunities and cost savings for the new company", says
Jack Rivkin, Executive Vice President at Citigroup Investments Inc., who also is
an investor and board member of Hollywood Stock Exchange.
The pending transaction will result in the former shareholders of Predict It and
Hollywood Stock Exchange receiving approximately 19% and 57% respectively of the
new HSX, while the new investor group will receive approximately a 24% stake in
the combined company. The transaction is subject to customary shareholder and
regulatory approvals, as well as agreement by both companies on the definitive
merger documents and the investment documents for the $10 million investment.
About Predict It, Inc.
Predict It, Inc. (OTC BB: PRIT) is a leading provider of interactive prediction
applications targeting the online sports and financial markets. The Company's
flagship product, Predict It(R), is based on an innovative, patent-pending
prediction exchange system that objectively documents and rewards users based on
their ability to predict the outcome of future sporting events. The Company's
second product is the VirtualStockExchange(R), a rewards based stock market
simulation which enables consumers to compete against one another in
customizable private and public stock market competitions for cash and other
valuable prizes. Consumers may access Predict It directly via its web sites at
www.predictit.com and www.virtualstockexchange.com or through its growing
network of sports, finance, news, portal, and community affiliate sites. Predict
It is based in New York's Silicon Alley and is a fully reporting company.
About Hollywood Stock Exchange
The Hollywood Stock Exchange(R) (www.hsx.com) is a digital media company that
provides consumers with an online entertainment experience, driven by its
patented entertainment virtual stock market. Hollywood Stock Exchange syndicates
the news and insights from the Exchange into traditional media as original
programming and to entertainment companies as market research. The company has
recently been named the "Best of the Web" by Forbes Magazine and one of the "Top
Gaming Sites" by Yahoo! Internet Life Magazine. Hollywood Stock Exchange is
headquartered in West Hollywood, California and has offices in New York City,
NY.
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The statements contained in this release that are not historical facts may be
deemed to constitute forward-looking statements. Actual results may differ
materially from those projected in such statements due to a number of risks and
uncertainties, including, without limitation, demand and competition for the
Company's products and other risks and uncertainties detailed in the Company's
filings with the Securities and Exchange Commission.
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Predict It Contact: Predict It Investor Contact:
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Andrew Merkatz, President & CEO Jon Lake
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Predict It, Inc. Venture Catalyst, Inc.
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(212) 217-1206 (310) 399-4059 ext. 105
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[email protected] [email protected]
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Hollywood Stock Exchange Contact: Hollywood Stock Exchange Media Contact:
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Kristen Tarnol Geoff Sherr
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Hollywood Stock Exchange CarryOn Communication
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323-822-2492 310-385-8530
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[email protected] [email protected]
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