Exhibit 99.5
NEWS RELEASE
Paramark Enterprises, Inc.
One Harmon Plaza
Secaucus, NJ 07094
Media Contact: Alan Gottlich (201) 422-0910 Ext. 18
PARAMARK ENTERPRISES, INC. ANNOUNCES EXECUTION OF AGREEMENTS
Secaucus, N.J. - October 18, 2000 - Paramark Enterprises, Inc.
("Paramark") announced today that it has entered into an asset purchase
agreement (the "Rich Products Agreement") with Rich Products Manufacturing
Corporation ("Rich Products"), pursuant to which the Paramark will sell its
bakery operations located in El Cajon, California which represents a majority of
the Paramark's operating assets. Paramark also announced that it has entered
into a license agreement with Rich Products through which the Company granted
Rich Products a license to assume full operational control of the El Cajon
bakery facility as of October 9, 2000.
The Rich Products Agreement provides for a purchase price aggregating
$2,182,750 inclusive of payment for inventory. The aggregate purchase price will
be paid as follows: $182,750 by October 20, 2000, $1,000,000 upon the closing of
the Rich Products Agreement, $1,000,000 payable in semiannual installments over
a period of four (4) years. Rich Products is also assuming approximately
$285,000 in equipment lease related debt pursuant to the Rich Products
Agreement.
Paramark also announced that it has entered into an assets purchase and
sale agreement (the "Brooks Street Agreement") with Brooks Street Companies,
Inc. ("Brooks Street"), pursuant to which the Company sold the remainder of its
bakery operations to Brooks Street.
The Brooks Street Agreement provided for a purchase price in the form
of the assumption by Brooks Street of approximately $75,000 in equipment lease
related debt, the purchase of inventory by Brooks Street in the amount of
$12,500 and the agreement by Brooks Street to make royalty payments to Paramark,
over a period of four (4) years equal, to 5% of net sales of pull-apart cakes to
existing customers of Paramark plus 1 1/2% of net sales of pull-apart cakes to
new customers of Brooks Street. The closings of both transactions are subject to
certain conditions precedent including the approval of Paramark's shareholders,
although both Rich Products and Brooks Street have been given immediate
conditional control over the assets they are respectively acquiring from
Paramark.
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Following the closings of these transactions outlined above, Paramark
currently intends to liquidate pursuant to a plan of liquidation. Paramark
intends to use the net proceeds received from the Rich Products and the Brooks
Street transactions as follows: $1,332,750 towards the reduction of outstanding
indebtedness, $125,000 towards the expenses of the transactions, $225,000
towards working capital. Paramark currently intends to distribute the remaining
net proceeds to it's shareholders over a period of four (4) years pursuant to
the plan of liquidation. Following completion of the Rich Products and Brooks
Street transactions and prior to implementing the plan of liquidation, Paramark
intends to explore various options available. Paramark's Board of Directors
reserves the right to terminate the plan of liquidation following shareholder
approval to the extent any of the options explored by Paramark are financially
beneficial to Paramark's shareholders.
Paramark is a publicly held company head quartered in Secaucus, New
Jersey, whose common stock and Class B Warrants trade on the OTC Bulletin Board
under the symbols TJCI and TJCIZ respectively.
Certain statements contained in this news release regarding matters
that are not historical facts are forward-looking statements. These statements
relate to future events or Paramark's future performance. These statements are
only predictions. Because such forward-looking statements include risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to, the risk factors
listed in the Paramark's Annual Report on Form 10-KSB for the fiscal year ended
December 31, 1999. Any of these risks and uncertainties could cause Paramark's
actual results to differ materially from historical earnings and those presently
anticipated or projected. As a result, potential investors are cautioned not to
place undue reliance on any such forward-looking statements, which speak only as
of the date made.
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