|Legacy Announces Multi-Million Dollar International High-Tech Acquisition; Company to Enter the Hotel Sector|
January 20, 1999
CAMBRIDGE, Mass. / Jan. 19, 1999--Legacy Software, Inc. (NASDAQ:LGCYC), which has entered into a merger agreement with Videocall International Corporation, announced today the signing in London England of a LETTER OF INTENT to acquire a majority interest in PROGRESS BARTECH FINANCING (UK) LIMITED, a company incorporated under the laws of England & Wales. The proposed transaction is a part-share part-cash multi-million dollar acquisition.
Progress Bartech is a company exclusively involved in the supply and installation of high-tech Automatic Electronic Mini-Bars to the International Hotel Industry under a "shared revenue program".
Progress Bartech owns the exclusive rights under the revenue sharing program to install the Mini-Bars manufactured by BARTECH in international hotels and hotel group facilities in Europe, the Middle East and Africa. Currently, the company has signed mandatory exclusive contracts with the Holiday Inn-Crowne Plaza Hotel Group for a period of not less than 5 years, and with individual hotels within the group for exclusive periods of between 7 and 10 years. In addition, the company has signed contracts from BASS HOTEL GROUP, owners of HOLIDAY INN WORLDWIDE, the INTERCONTINENTAL EMEA GROUP, as well as RADISSON SAS for the supply of many thousands of Mini-Bar units. The company is also in final stages of negotiations with the SHERATON and WESTIN GROUPS, as well as several other leading international hotel chains. Bartech is generally acknowledged as the world leader in the manufacture, delivery and installation of high-tech automatic Mini-Bars and has established dealers and service locations in over 30 countries around the world.
Delivered and installed Bartech Mini-Bars world-wide as of end of 1998 number around 30,000 units, and projected installations for the calendar year 1999 are for an additional 11,000 units. The company, which currently has over 2,000 revenue sharing Mini-Bars in place in hotel bedrooms all over Europe, plans to deliver on contracts and target installations for some 35,000 Mini-Bars over the next 4 to 5 years.
Jack Ronnel, director of the company, stated, "We are very pleased and excited to align ourselves with the fast- growing Legacy/Videocall group. Our organisation, already a world leader in the high-tech Mini-Bar 'revenue sharing' business, is now poised to rapidly expand operations around the globe, and with the Legacy team behind us, we believe that we will surpass all previous projections and expectations."
"We further believe that as the company brings to Legacy and Videocall the established exclusive and truly international distribution network into the hotel and leisure industries, this road forward will now be paved for the introduction of videocalling services to the hotel bedroom. Progress Bartech now stands ready to take its place in this new exciting industry."
Commenting on the transaction, Legacy chairman Michael Zwebner said, "This acquisition (of Progress Bartech) propels Legacy forward and elevates the company into a new era and higher plateau of international business, in both the global hotel sector and in the telecommunications industry sector."
Bartech, an organisation in the hotel Mini-Bar business for over 11 years, has particular and established manufacturing and marketing expertise, with special emphasis in dealing with hotels and hotel groups. Its products have a reputation for excellence and durability. In a reverse merger announcement on September 15th 1998, Legacy recently acquired Videocall International Corporation, a Cambridge MA-based company exclusively involved in the business of ISDN-connected global videocalling.
Videocall International, in association with Progress Bartech, will shortly be announcing the formation of a new Joint Venture Group to globally market videocalling technology and systems into the hotel industry. The company believes that this initiative will propel it to the forefront as the NUMBER 1 supplier offering hotels the world over the ability of delivering to their guests low-cost videocalling services and facilities directly from the hotel bedroom TV set. The company currently utilises videoconferencing equipment supplied by various vendors including Intel Corporation, and PictureTel Corporation of Andover MA.
Videocall president Gene Rosov stated that "The scope and implication of the Bar-Tech deal is so immense, it is difficult to imagine and portray the true potential of where all this will lead. Of course, consummation of the acquisition is subject to a number of standard conditions, such as execution of a definitive acquisition agreement. The combination of Videocall and Progress Bartech, both companies to be subsidiaries of Legacy, gives us uniquely combined penetration into the hotel and leisure industries for both the latest high-tech Mini-Bars and Videocalling systems. Our company has now positioned itself to become the top world player in these exciting high-tech industries. "
Videocall is in the process of building a global ISDN network of videocalling locations. In addition to several hundred locations, the company recently announced plans to open some 20 "flagship" stores, with several currently under construction. Videocall flagship locations include Toronto and Montreal, Canada; Jamaica Plain/Boston, MA; Sacramento, CA; Miami, FL; Kingston, Jamaica; Tel Aviv, Israel; and London, England. Pursuant to the company's development of flagship stores, Mr. Rosov has been quoted as saying "With Boston (Jamaica Plain) underway, we expect to quickly open additional corporate Videocall locations in most major North American cities. Miami, Toronto, Montreal are nearly completed, and our development plan proposes approximately 300 similar sites during 1999."
Upon shareholder approval, Videocall International Corporation will become a wholly-owned subsidiary of Legacy Software, Inc. Videocall International Corporation and Legacy Software, Inc., maintain offices in Los Angeles CA and Cambridge MA with worldwide headquarters in Cambridge MA.
Except for historical information contained herein, the statements in this release (including without limitation, statements indicating that the company "expects," "estimates," "anticipates," or " believes" and all other statements concerning future financial results, product offerings or other events that have not yet occurred) are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Additional information on these and other factors are included in the company's Form 10-KSB of the Fiscal Year ended Dec. 31, 1997, as filed with the Securities and Exchange Commission.
Mr. Lukas J. Rosov