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September 30, 1999 08:02am
Private Media Group Announces Exclusive UK Distribution Deal for Private Dynamite Energy Drink
Source: PRNewswire
by: Company Press Release

BARCELONA, Spain, Sept. 30 /PRNewswire/ -- Private Media Group Inc. (Nasdaq: PRVT - news), a leader in high-class adult entertainment products and services since 1965 and the first such company trading on the Nasdaq National Market, today announced that it has signed an exclusive agreement with K-OS Distribution (UK) Limited for the distribution in Britain and Ireland of its Private Dynamite energy drink.

The distributor has already confirmed an initial order of 300,000 cans for widespread general distribution and sale, to be backed by an extensive marketing and promotion campaign. An integral part of the five-year agreement is that K-OS can engage sub-distributors, licensees and selling agents within the stated territory to further distribute, promote and sell the product.

Private Dynamite is a premium-priced energy drink that can be imbibed either straight from the can or used as a mixer. The product comes in an attractive collector-style can featuring a series of non-explicit pictures of Private stars.

This latest commercial benefit to the Company from the global awareness of its brand name follows the recently announced licensing and distribution agreement for two new magazine titles in the UK, the 'soft' adult title 'Private Life' and the 'mid-shelf' lifestyle publication, 'Private Style.'

Berth Milton, CEO of Private Media Group Inc., said: ``Following the recent highly-positive publicity in the UK for our Private Circle range of street fashionwear, as well as media exposure regarding our music soundtrack featuring members of British bands, Massive Attack and The Prodigy, this new distribution agreement for Private Dynamite just illustrates that Private is a globally-established brand name in the public consciousness. We are delighted with our continuing profile in the UK, and this will be further heightened by the publication of the two magazine titles under the recent licensing and distribution agreement. Private Media Group Inc. maintains a philosophy and commercial presence that is all about being a total adult lifestyle company for the new millennium. Our complete product and service portfolio -- including our impressive array of Internet sites -- reflects this.''

For K-OS Distribution (UK) Limited, Mark T N Cowne, added: ``We are extremely excited by the opportunity that Private Dynamite represents. The UK energy drinks market is currently worth over 100,000,000 pounds sterling per annum and is the fastest growing sector of the soft drinks market. Last year over 150,000,000 litres of energy drinks were consumed and the market is continuing to grow. In initial product tests, we found that over 85% of adults participating preferred Private Dynamite to competitive products. Distribution of Private Dynamite has already commenced and the product has been well received at both wholesale and retail levels.'' The product will be officially launched in London on November 5 at former Rolling Stone Bill Wyman's Stickey Fingers restaurant.

In concluding, Mr. Milton said: ``As one key element of our lifestyle package, we have test-marketed Private Dynamite in Spain and are now confident that this high-quality energy drink has serious, worldwide commercial potential. K-OS Distribution (UK) obviously feels the same way and we are delighted that they have signed this agreement with us for the UK and Ireland. Naturally, we welcome further distribution enquiries from all territories across the globe.''

Private Media Group Inc. commenced operations in 1965. Its primary business activities today include the acquisition, refinement and delivery of adult feature products and services, including a range of proprietary websites, DVDs, unrated and adult feature magazines, videos, and CD-Roms; the distribution and licensing of its proprietary products and services on the Internet, including magazines, videos, interactive services, adult novelty products and the Private Circle fashion line; and TV Home Shopping for Private's proprietary and licensed products.

For more information, visit the Company's corporate Web-site at www. prvt.com.

This release contains, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1934, as amended, which reflect the Company's current judgements of those issues. However, because those statements are forward-looking and apply to future events, they are subject to such risks and uncertainties, which could lead to results materially different than anticipated by the Company.

SOURCE: Private Media Group Inc

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