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MCAMD Motorcyles Centers of America /EUniverse.com
An SI Board Since April 1999
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Motorcyles Centers of America AcquiresEntertainment Universe / eUniverse.com

April 14, 1999 04:26 PM
INGLEWOOD, Colo.--(BUSINESS WIRE)--April 14, 1999--Motorcycle Centers of America Inc. MCAMD today announced the completion of the acquisition of Entertainment Universe Inc. (http://www.eUniverse.com), which in turn has simultaneously closed on the acquisition of CD Universe Inc. (http://www.cduniverse.com, videouniverse.com) and rased $6,500,000 dollars through a private placement led by institutional investors including Lehman Brothers Inc. and Eisenberg Partners L.L.C.

Entertainment Universe (www.eUniverse.com) was acquired by MCAMD in a stock for stock exchange completed via a Plan of Reorganization. Additionally, Entertainment Universe's officers and directors have replaced those of MCAMD. Post acquisition, MCAMD which intends to change its name to eUniverse.com Inc. has 13,738,000 shares outstanding and a float of 1,033,000 shares.

Entertainment Universe Inc. (http://www.eUniverse.com), a privately held California-based Internet company, has made CD Universe Inc. its first acquisition in its plan to build a network of entertainment focused commerce, community, and technology driven Web sites, similar to a strategy being employed by Go2Net Inc. GNET .

CD Universe Inc., based in Wallingford, Conn., is one of the most successful and sophisticated online retailers, selling music, video products, and accessories online since 1996. Through its web sites: www.cduniverse.com and www.videouniverse.com, the company has won numerous awards for customer service. A recent consumer survey released by BizRate, an independent commerce ranking service, rated CD Universe the third best shopping site for customer service on the Internet out of 500 online merchants which included: Amazon AMZN , Cyberian Outpost COOL , Cybershop CYSP , Beyond.com BYND and Egghead EGGS .

With a critical mass of over 275,000 customers, CD Universe is expected to show revenue of over $9,000,000 with a net loss of approximately $500,000 for its most recent fiscal year which recently ended March 31, 1999. For its fiscal year ending March 31, 1998, CD Universe reported audited revenue of $5,685,000 with a net loss of ($113,000).

"The acquisition of CD Universe has provided eUniverse.com with an outstanding e-commerce engine to power our growing entertainment focused web site network. With unmatched customer service, proprietary technology, and its own 7,500 square foot fulfillment center, CD Universe will allow eUniverse.com to successfully implement a wide range of e-commerce opportunities immediately," explained eUniverse.com chairman Brad D. Greenspan.

Charles Beilman, president and founder of CD Universe, now becomes chief operating officer of eUniverse.com.

"I'm very pleased to be part of the outstanding eUniverse.com management team and look forward to helping build the eUniverse.com network," Beilman said.

Entertainment Universe Inc. has raised $6.5 million dollars through the issuance of six percent Series A Convertible Preferred Stock. The Series A Preferred Stock initially converts into common stock at $3.60 per share and cannot be converted for at least 6 months from issuance. Gerard Klauer Mattison & Co. Inc., a New York-based investment banking firm, acted as the placement agent for the transaction. Several principals of Gerard Klauer Mattison & Co. were also prior investors in Entertainment Universe. In addition, Gerard Klauer Mattison & Co. has been retained to provide eUniverse.com with financial and M&A advisory services.

"We are excited that institutional investors such as Lehman Brothers, Inc. and Eisenberg Partners, L.L.C. have found eUniverse.com's story to be so compelling," said Greenspan. "In addition, through our banking relationship with Gerard Klauer Mattison & Co., we will begin to aggressively seek out additional acquisitions for our network. With over $5,000,000 dollars of cash and no debt, we are in excellent shape to execute our business plan. We intend to file our Form 10-SB as soon as possible and upon effectiveness will immediately seek to become listed on the Nasdaq exchange."

About Gerard Klauer & Co., Inc.

Gerard Klauer Mattison & Co., Inc. is a New York-based institutional research and investment banking firm that provides a full range of investment banking services. Gerard Klauer Mattison has 16 research analysts covering over 180 companies with a focus on media, entertainment, and technology. Gerard Klauer Mattison has branch offices in Boston, Chicago, San Francisco and Tel Aviv.

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84Does anyone know that Charles Beilman is still in Wallingford CT and the CEO of CBeilman-8/26/2011
83Ed, I got some questions on this one. Can ya help me out?StockDung-1/24/2002
82 i agree, see you on the EUNI thread. PHowe-5/2/1999
81 Thanks for the news. Next step is NASDAQ introduction. Bert Bert Herman-4/30/1999
80 ahoj!! Certainly good news as far as the change is concerned.....I would like praguepivo-4/30/1999
79 New Symbol WALLINGFORD, Conn.--(BUSINESS WIRE)--April 30, 1999--eUniverse (wwPHowe-4/30/1999
78 Related Quotes EUNI 13 1/2 +1/2 delayed 20 mins - disclaimer Friday AprPHowe-4/30/1999
77 About the Lehman connection. This is fact as stated in their press release froBert Herman-4/28/1999
76 I asked that same question to the Investor Relations officer and he sended me aBert Herman-4/28/1999
75 Does anyone know when the name change to E Universe will go through and it willdieter1845-4/27/1999
74 Well, well, They sure aren't sitting on their ass. If they do an acquisitBert Herman-4/27/1999
73 News today on another acquistion Company Press Release eUniverse to Acquire OPHowe-4/27/1999
72 Hi Mike, This past week I have asked 2 of our hot SI gurusses to look at MCAMD,John G. Mueller-4/24/1999
71 Just published some really solid information on Case's Ladder to our site (PHowe-4/22/1999
70 Mike, O.K., nobody can see in the future, but if I read what other ecommerce Bert Herman-4/22/1999
69 Mike- You picked another winner. This good thing about this press release todaykirby888-4/22/1999
68 I don't know about that Bert, but I'm glad I got in when I did. The volMike Leak-4/22/1999
67 700.000 shares is a reasonable price, I think. Bert Bert Herman-4/22/1999
66 I thought brad hit a real homerun last night. Listeners must be impressed by BrPHowe-4/22/1999
65 Today's news Thursday April 22, 7:01 am Eastern Time Company Press ReleasePHowe-4/22/1999
64 I know what you mean- Leak- I didn't know if I was on to something until I kirby888-4/21/1999
63 Wow- Wow- Wow- Who heard that interview? I feel like I just heard future greaMike Leak-4/21/1999
62 I know what you mean Kirby- It does look good. Real good. Can they really pull Mike Leak-4/21/1999
61 Hello EUniverse followers. I discovered your link yesterday, liked what I saw. dieter1845-4/21/1999
60 I read the company's press release a couple of days ago. It looks too goodkirby888-4/21/1999
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