BURLINGAME, Calif., May 16 /PRNewswire-FirstCall/ -- IA Global Inc. (Amex:
IAO) announced today the sale of Fan Club Entertainment Co Ltd ("Fan Club") as
of May 12, 2005 to TK Partners, Inc., formerly Cyber Holdings Co Ltd. As part
of this transaction, the company is selling the 67% owned business for
approximately $755,000 at current exchange rates. In addition, Cyber Holdings
will transfer 350,000 shares of IA Global common stock, valued at $.16 per
share, back to IA Global. The total cash purchase price which will be paid
with $189,000 at signing and a note that is due in monthly installments of
approximately $71,000 from June 2005 thru January 2006. The note is unsecured
and TK Partners has made an initial $189,000 payment. Fan Club reported
revenues and a net loss of approximately $144,000 and $205,000, respectively,
during the three months ended March 31, 2005. The company expects to break
even or have a small loss on the sale of the business.
The company's CEO, Alan Margerison, said, "The company has decided to
divest the Fan Club business because it is no longer core to our operations
and the closing of new license sales has been more difficult than we expected.
This transaction will allow the company to focus on the development of our Rex
Tokyo and Global Hotline, Inc businesses and spend additional funds on
investor relation activities. Further, the sale is expected to reduce our
annual loss."
The Global Hotline, Inc. acquisition was announced April 20, 2005 and is
expected to close on May 31, 2005, subject to the completion of due diligence.
We expect this acquisition to increase our stockholder's equity by $3,100,000
to above $6,000,000 and to help us maintain our AMEX listing. This acquisition
further expands our Japanese operations and provides substantial additional
revenue. We expect GHI to contribute $20,000,000 to $23,000,000 in sales
during 2005 and $30,000,000 to $33,000,000 in sales through March 31, 2006. We
expect GHI to be profitable on a stand-alone basis starting in the third
quarter of 2005 and help IA Global to achieve our goal of being profitable for
2005.
There is no guarantee the GHI transaction will close. Further, we continue
to work with AMEX to maintain our listing. There is no guarantee that the
company will be successful in maintaining its AMEX listing.
About IA Global Inc.
IA Global, Inc. is a public holding company focused on acquiring Japanese
and US companies that operate in the entertainment, media and technology
areas. We hold a 60.5% equity interest in Rex Tokyo Ltd., a supplier and
maintenance contractor of parts to the Pachinko and slot machine gaming
industry in Japan. Rex Tokyo is a supplier and fitter of installations for
both new Pachinko parlors and stores that are carrying out re-fittings. It
also supplies items such as automatic medal dispensing machines, automatic
cigarette butt disposal systems, lighting systems and Pachinko ball sand other
Pachinko accessory products as well as numerous new Pachinko slot machines.
For further information, contact:
Mark Scott
CFO
IA Global Inc.
533 Airport Blvd. Suite 400
Burlingame CA. 94010
Phone: 650-685-2402
Fax: 650-685-2404
Email: scott@iaglobalinc.com
WebSite: http://www.iaglobalinc.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: This press release contains forward-looking statements (within the
meaning of Section 27a of the Securities Act of 1933 and Section 21e of the
Securities Exchange Act of 1934) regarding us and our business, financial
condition, results of operations and prospects. Specifically, the statement in
this press release concerning the projected profit and loss on the sale of Fan
Club Entertainment Co Ltd, 2005 and 2006 revenues and 2005 profitability are
forward-looking statements. Forward-looking statements in this report reflect
the good faith judgment of our management and the statements are based on
facts and factors as we currently know them. Forward-looking statements are
subject to risks and uncertainties and actual results and outcomes may differ
materially from the results and outcomes discussed in the forward-looking
statements. Readers are urged not to place undue reliance on these forward-
looking statements which speak only as of the date of this press release. We
undertake no obligation to revise or update any forward-looking statements in
order to reflect any event or circumstance that may arise after the date of
the press release."
SOURCE IA Global Inc.
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Related links:
http://www.iaglobalinc.com
CONTACT:
Mark Scott, CFO, +1-650-685-2402, Fax:
650-685-2404, scott@iaglobalinc.com
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