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| Xentel | . | Press Release - March 15, 1999 |
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XENTEL DM To Acquire Nation-Wide U.S. Event Marketing Business CALGARY, ALBERTA, March 15, 1999 - XENTEL DM Incorporated (ASE:XDM) today announced that it has entered into a definitive agreement with two United States corporations, The Gehl Corporation and a related corporation Advanced Technology Concepts, Inc. to acquire their client contracts and customer databases, multiple call center locations and event marketing businesses. The Gehl Corporation is one of the largest, private, cause-related event marketing firms in North America with close to $75 million in revenue (U.S. $50 million). Cause-related event marketing entails creating, marketing and presenting sports and entertainment events and then partnering with, in Gehls case, public service organizations across the United States. The Gehl Corporation currently operates in 31 states and staged 300 events last year. The Gehl Corporation incurred an operating loss in its last fiscal year ended December 31, 1998 equal to 3% of its revenues when restated to conform with XENTEL DMs Canadian accounting principles. The Company believes that with the adoption in the U.S. of its profitable business model and planned restructuring of this acquisition that commencing in late fiscal 1999, operating income can significantly improve. In commenting on the acquisition, Michael Platz, Chairman and Geoff Pickering, President of XENTEL DM Incorporated observed: "We have set out to build a solid, growth-oriented company with an international mandate that provides real shareholder value. This U.S. acquisition enhances and complements an already strong niche in Canada in event marketing." The acquisition is expected to close in late March, 1999 and is subject to financing, Alberta Stock Exchange approval, satisfactory arrangements with creditors of the Gehl Corporation and other customary conditions. XENTEL DM is the largest and most experienced provider of fund-raising, membership recruitment and special events services to non-profits and community service organizations in Canada. The Alberta Stock Exchange has neither approved nor disapproved of the contents of this announcement. For further information, please contact:
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