Telecom Products Marketer to Accelerate Electronic Commerce, Broaden Product
and Service Range with Integration of Successful Web Buyers Guide
SAN JOSE, Calif., Jan. 11 /PRNewswire/ -- Hello Direct, Inc.,
(Nasdaq: HELO), the leading developer and direct marketer of desktop telephone
productivity tools, today announced it has signed a definitive agreement to
acquire privately held PhoneZone.com, which publishes a widely respected web
buyers guide covering telecommunications and networking products and services.
The terms of the agreement were not disclosed.
PhoneZone.com, founded in 1996 and an emerging authority on the
convergence of Internet and telecom technologies, is an influential source of
comparative research, analysis, and purchase information on telecom and
networking solutions for small and medium-size companies. The site serves a
growing number of regular business end users who have virtually no alternative
single point of contact for conveniently researching, comparing, and buying
such a wide range of telecom solutions.
According to Alec Glover, Hello Direct's chief executive officer, more
aggressive Internet channel development is one of the key elements in
Hello Direct's growth strategy. "The Internet is our most exciting and
fastest growing channel, already approaching 10% of our total quarterly
revenue and growing at more than a doubling rate year on year in 1998. This
acquisition positions us to dramatically accelerate our electronic commerce
initiative and more quickly exploit the Internet's potential to become the
ultimate direct marketing channel for Hello Direct. With PhoneZone.com's
experienced personnel, cutting-edge technology, and high quality content we
can grow from our current position as the leading Internet source for desktop
telephony products, to become the leading Internet marketplace for a much
broader range of telecom products and services," said Glover.
For the nine months ended September 30, 1998, Hello Direct reported net
sales of $51.5 million. PhoneZone.com's revenues for 1998 were approximately
$1.2 million.
"PhoneZone.com provides small and home office buyers with an easy way to
locate, compare and buy telecom products and services, from low cost dial tone
to emerging technologies like Internet telephony and next generation PBX's,"
said Brian McConnell, PhoneZone.com's president and founder. "This is a great
example of a vertical portal site which combines navigation with expert
information, editorial, comparison tools, and links to distribution and
service partners. With the marketing support of an industry leader such as
Hello Direct, we will be able to turn one of the best kept secrets on the web
into a mainstream marketplace. The possibilities are truly exciting."
"There is an excellent fit between our two companies," said Glover.
"Hello Direct and PhoneZone.com target the under-served small to medium-size
business end-user, and both focus on providing outstanding customer guidance
and service in addition to selling superior product solutions. Most
importantly, both companies have highly complementary visions and strategies
for ultimately developing the pre-eminent Internet marketplace for
telecommunications."
About Hello Direct, Inc.:
Hello Direct, Inc. is the leading developer and direct marketer of
telephone productivity tools including headsets, teleconferencing, wireless
and related desktop products. Through its distinctive catalogs, Web site
(http://www.hellodirect.com) and outbound telemarketing programs, the Company offers
a broad selection of commercial-grade, brand name, proprietary and private
label products at competitive prices that provide solutions to its customers'
evolving communication needs.
About PhoneZone.com, Inc.:
PhoneZone.com is an industry-leading authority on telecommunications
products and services. The PhoneZone.com Website (http://www.phonezone.com)
simplifies the task of learning about and purchasing a wide range of
telecommunications solutions.
This release contains forward-looking statements including, but not
limited to, statements regarding the growth rate of the Company's Internet
channel, the acceleration of the Company's electronic commerce initiative, the
growth of the Company into the leading Internet marketplace for a much broader
range of telecom products and services, and creation of a unique portal site.
These forward-looking statements involve risks and uncertainties that could
cause actual results to differ, and such differences could be material. Such
risks and uncertainties include, but are not limited to the difficulties in
the assimilation and integration of operations, personnel, and technologies
products of acquired companies, and risks associated with the Internet and
electronic commerce in particular, which is a new emerging market. There can
be no assurance that the Company will be successful in addressing such risks
and uncertainties. Investors are strongly encouraged to review the section
entitled "Factors affecting operating results and market price of stock" in
the Company's annual report on Form 10-K for the year ended December 31, 1997,
and quarterly reports on Form 10-Q on file with the Securities and Exchange
Commission for a discussion of risks and uncertainties that could affect
operating results and the market price of the Company's stock.
SOURCE Hello Direct, Inc.
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Related links:
http://www.hellodirect.com
CONTACT:
Raymond E. Nystrom, Vice President
Operations-Chief Financial Officer, of Hello Direct, Inc.,
408-363-5075; or General Information, Don Markley or Analyst,
Reid Cox, 415-986-1591, both of The Financial Relations Board
NOTE TO EDITORS: For more information on Hello Direct, Inc. via
fax at no cost, dial 800-PRO-INFO (908-544-2850 outside the
U.S.), ticker symbol: HELO
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