'GoodGuys.com' Will Leverage Position of Brick-and-Mortar Stores; Serve Early
Adopters and Tech-Savvy Consumers Nationwide
SAN FRANCISCO, Jan. 5 /PRNewswire/ -- Good Guys (Nasdaq: GGUY), a leading
specialty retailer of consumer entertainment electronics, today announced that
it will create a new company, GoodGuys.com, Inc., to maximize opportunities
for electronic commerce in the consumer entertainment electronics industry.
One of the first retail Web sites dedicated exclusively to selling high-end,
fully featured products to tech-savvy, early adopting consumers, GoodGuys.com
is expected to be fully operational in the second quarter of calendar 2000.
"GoodGuys.com is a logical extension of our position as the provider of
choice for customers who demand the most sophisticated high-tech consumer
entertainment electronics," said Ronald A. Unkefer, founder, chairman and
chief executive officer of Good Guys and chairman of GoodGuys.com.
"Leveraging the position, strong brand recognition, advertising and buying
power of our brick-and-mortar stores, GoodGuys.com will offer a broad
selection of fully featured, digital products, Internet-related appliances and
consumer entertainment electronics from the same top manufacturers who sell
their products in our physical locations.
"Studies by Web site research firms suggest that consumers would rather
shop online with familiar names than with unknown, mass merchandising
e-tailers lacking physical store locations," said Unkefer. "GoodGuys.com will
offer customers the unmatched high-touch customer service, product expertise
and broad merchandise selection that are available in our brick-and-mortar
stores. And, unlike many of the mass merchandisers, GoodGuys.com will be a
fully authorized dealer of the brands it offers, ensuring that customers
receive the same dealer service and support available to customers in our
stores."
Good Guys will own stock and warrants that will give it 49.9 percent
ownership of the company. Outside investors, including Bay Area venture
capitalists, "angel investors" and Good Guys management and board members,
will provide funding for GoodGuys.com.
"By creating a separate company dedicated to electronic commerce, Good
Guys can reap all the benefits of a branded electronic commerce site, without
assuming the associated financial risks and obligations," said Unkefer.
"GoodGuys.com allows us to offer our products to customers nationwide with our
unique positioning and broad product selection."
Good Guys is in the process of selecting an experienced e-commerce
technology partner to create and host the site and expects to announce its
choice by the end of the month. GoodGuys.com is also reserving a substantial
number of shares for option grants to attract outstanding personnel who can
quickly build the site into the nation's premier entertainment electronics
specialty site.
GoodGuys.com will be incorporated in Delaware and headquartered in
Portland, Oregon, a state with no sales tax.
Good Guys is a leading specialty retailer of consumer entertainment
electronics, operating a total of 79 stores in California, Washington, Oregon
and Nevada, and marketing a broad range of high quality, name brand products.
For more information on Good Guys, including news releases, product
information and store locations, visit http://www.thegoodguys.com.
To the extent this news release contains forward-looking statements, such
statements are subject to risks and uncertainties, including, but not limited
to the Company's current restructuring program, increases in promotional
activities of competitors, changes in consumer buying attitudes, the presence
or absence of new products or product features in the Company's merchandise
categories, changes in vendor support for advertising and promotional
programs, changes in the Company's merchandise sales mix, and economic
conditions.
SOURCE Good Guys
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Related links:
http://www.GoodGuys.com
Company News On-Call:
http://www.prnewswire.com/comp/108403.html or fax,
800-758-5804, ext. 108403
CONTACT:
Kristen Malacarne, 214-665-1335, or pager,
888-613-2159, for Good Guys
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