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EXHIBIT 99.1
COLLEGIATE PACIFIC ACQUIRES KESMIL MANUFACTURING;
REVENUES AND MARGINS TO ACCELERATE
DALLAS--(BUSINESS WIRE)--Sept. 7, 2000--Collegiate Pacific (AMEX:BOO)
today announced that it has completed the acquisition of Kesmil Manufacturing of
Dallas for a combination of cash and notes.
Kesmil manufactures a broad line of athletic equipment such as soccer
goals and volleyball standards which are used in schools and institutions
nationwide. Kesmil was founded by Collegiate's CEO and several former employees
and was sold to Collegiate at a price approximating the development cost or a
multiple of 2 times of projected annual earnings.
Michael Blumenfeld, CEO of Collegiate, stated, "The impact of Kesmil
will be immediate. Revenues associated with Kesmil products are increasing at a
rate in excess of our internal growth which is near 50%. With no increase in
personnel or advertising, Collegiate will realize a 40% increase in margins for
the products manufactured by Kesmil as it becomes fully absorbed. Prior to the
acquisition, Collegiate was the exclusive distributor of Kesmil products. By
controlling the manufacturing process, the products and distribution channels
are more easily expanded domestically and internationally. This acquisition is
the prototype of corporate developments which Collegiate is pursuing. By adding
significant increases in gross margins and no additional expenses, Collegiate
realizes new earnings in direct proportion to the increase in revenues generated
from the acquisition. It is anticipated that Collegiate will continue to focus
new growth and acquisitions on proprietary type products such as those
manufactured by Kesmil and has targeted several other operations as potential
acquisition candidates."
This release, other than historical data, consists of forward-looking
statements that involve risk and uncertainties detailed from time to time with
public filings made by the Company. Actual results may vary.
CONTACT: Collegiate Pacific, Dallas
Mike Blumenfeld, 972/243-8100
