April 24, 2001 07:44am
PRVT: sex.se Adult Web Site Acquired by Private Media Group for $1.4 Million
Source: Private Media Group, Inc.
by: Company Press Release
(BARCELONA, Spain) -- Private Media Group, Inc. (Nasdaq: PRVT - news), worldwide leader in premium-quality, adult entertainment products, services and Internet content, today announced the recent acquisition of Coldfair Holdings Ltd., the owner and operator of the Internet Web-site www. sex.se -- one of the leading adult web sites in Scandinavia.
Under the terms of the agreement, a $1.4 million shares for shares transaction, Coldfair Holdings will become a wholly owned subsidiary of Private Media Group Inc. Private will take over the management of all features of the site including the shop and the sales of memberships, and continue to develop the business.
Online shopping of Videos, DVDs and Magazines is available at www. sex.se and the shop has successfully increased its turnover since the start. The shop sells primarily Adult products and the top sales items are Private DVDs. In addition there is a member's area which offers access to pictures, video-clips and other services managed by Private. Coldfair's has an e-mail database including more than 500,000 active addresses. In fiscal 2000, www. sex.se showed revenues of $622,000 and net profit of $260,000 and the figures are expected to be substantially higher in coming years as it capitalizes on the increased production of Private Media Group's DVD lines.
``We are extremely pleased with the acquisition of the www. sex.se site,'' said CEO of Private Media Group Inc., Mr. Berth Milton. ``This is another step in our plans to consolidate the Adult Entertainment Industry where our strategy is not to pay more than two to six times earnings. We have identified prospective acquisition targets and anticipate significant announcements over the coming months.''
The leading publicly-quoted adult entertainment company in the world, Private Media Group Inc., is the founder of the globally established brand name 'Private' and has positioned itself in the marketplace with a visionary management strategy that combines both New Economy (Internet, multimedia, e-commerce) and Old Economy (videos, magazines) business models. Maintaining a total adult lifestyle philosophy, this is reflected in the Company's broad range of products and services, both proprietary and licensed, and its strategic policies of development, diversification and acquisition.
For more info about Private Media Group, please 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 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgements of those issues. However, because these statements are forward-looking and apply to future events, they are subject to unpredictable circumstances, which could lead to results materially different from those anticipated by the Company.
For further information about Private Media Group, please contact: In Barcelona, Spain: Andre F. Ribeiro, +34-679-983-772, andre@private.com.
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