Wednesday March 15, 8:29 am Eastern Time
Company Press Release
Hollinger International Increases Investment in Bidhit.com
NEW YORK and BOTHELL, Wash.--(BUSINESS WIRE)--March 15,
2000--Bidhit.Com (OTCBB:BHIT
- news) and
Hollinger International (NYSE:HLR
- news)
- Hollinger International (NYSE:HLR
- news) Increases
Investment to a Total of $3.4 million and a 12.4% Ownership in
Bidhit.Com (OTCBB:BHIT
- news)
- Chicago Sun-Times and Bidhit.Com in Talks to Develop Co-Branded
Web Site
- Bidhit.Com Gains Online Rights to Publish Selected Content from
Hollinger Publications
-- Hollinger to Continue Providing Strategic Advice
Hollinger International Inc. (NYSE:HLR
- news) a global
newspaper publisher and Bidhit.com, Inc. (OTCBB:BHIT
- news;
Frankfurt:BHC), a rapidly growing online real-time auction company,
announced today that they are expanding their business relationship
initially announced Dec. 6, 1999.
As part of the agreement, Hollinger has increased its stake in
Bidhit.com to 1.463 million shares representing 12.4% ownership of the
Company (non-diluted).
Hollinger has invested an additional $300,000 that will assist
Bidhit.com in the development of a pilot project with the Chicago
Sun-Times, a Hollinger-owned publication, with a daily circulation of
481,000 and award winning Web site (www.suntimes.com).
The pilot project is to be a co-branded auction site.
Bidhit.com will also receive an additional $2.1 million in
advertising in Hollinger-owned publications. When combined with the
December agreement between the companies, the total advertising
investment totals $3.1 Million. Bidhit.com will use this advertising
money to increase awareness of the Bidhit.com brand and specific auction
offerings.
Hollinger will also provide Bidhit.com use of selected content
published by Hollinger publications for a one-year period, on a
non-exclusive basis. Bidhit.com is developing a consumer education
section for its Web site and the Hollinger content will add substantial
value for Bidhit.com customers.
The parties also agreed that Hollinger would extend by one year, the
term of its advisory services contract to Bidhit.com. The consulting
services contract now expiring Jan. 1, 2002 calls for Hollinger to
advise and assist Bidhit.com in its international expansion and future
growth. Accordingly, as previously announced, Paul B. Healy, Vice
President, Corporate Development and Investor Relations, Hollinger
International and Frederic R. Lebolt, Vice President, New Media,
Hollinger International, have joined the Bidhit.com Advisory Board.
``Developing the co-branded site with the Chicago Sun-Times is
precisely the opportunity we hoped would evolve when we initially
entered into an Agreement with Hollinger,'' states Mr. Tim Black,
President and CEO of Bidhit.com. ``We anticipate success with such a
venture which should lead to the development of a number of other major
opportunities with them. Our increased involvement with Hollinger
combined with the tremendous potential of our recently announced letter
of intent to acquire EZbid.com from Systemax Inc. (NYSE:SYX
- news) position our
company for significant growth. I believe that it is becoming abundantly
clear to our shareholders, the Web-based business community and the
financial markets that Bidhit.com is demonstrating the capabilities
required in creating a significant online enterprise.''
``Development of a co-branded auction site with our flagship US
newspaper will help us serve our online readers. We are pleased to
increase our investment in Bidhit.com so that, together, we can add
expanded services to our Web users,'' stated Mr. David Radler, Deputy
Chairman, President and Chief Operating Officer of Hollinger
International.
BACKGROUND INFORMATION
About Hollinger International Inc.
Hollinger International Inc.(HLR) is a New York Stock Exchange-listed
global newspaper publisher, with English-language newspapers in the
United States, UK, Canada and Israel. Included among its 77 paid daily
newspapers are the Chicago Sun-Times, The Daily Telegraph (London), The
Ottawa Citizen, The Jerusalem Post and the National Post (Canada). In
addition, the company owns 302 non-daily newspapers as well as magazines
and other publications.
Hollinger operates Web sites through all its major newspapers.
Through its Hollinger Ventures subsidiary, the company has also taken
investment positions in various Internet-based companies.
About Bidhit.com
Bidhit.com (www.bidhit.com) is a
real-time online auction company which differentiates itself from its
competition by its strong customer care focus. The company provides more
than 100,000 registered users with the opportunity to bid on quality
brand name products in such categories as computers and peripherals,
camera equipment, sporting goods, household goods, home electronics and
sports memorabilia. Bidhit.com continues to grow through expansion of
its solid operational infrastructure, leveraging strategic marketing
relationships and focusing on customer care and protection. The
Bidhit.com experience includes certified vendors, secure credit card
buying, live online customer service, warranty protection and extended
service plans. Bidhit.com will continue to leverage this successful
strategy to reach its goal of becoming one of the leading online auction
brands.
Bidhit.com recently announced it has signed a letter of intent to
acquire EZbid.com, a wholly-owned subsidiary of Systemax Inc. Upon
completion of the transaction Systemax Inc. will own 30% of Bidhit.com.
Systemax Inc., located in Port Washington, New York, is a Fortune 1000
PC direct marketer of computer hardware and software. Systemax reported
sales of $1.75 Billion in 1999.
About the Online Auction Segment
According to Forrester Research, 52% of online business is expected
to be transacted via auctions by 2002, (Reported in Business 2.0, June
1999). The success of online auction sites such as eBay,Inc. (Nasdaq:EBAY
- news),
uBid,Inc.(Nasdaq:UBID
- news), Onsale Inc. (Nasdaq:ONSL
- news), has been well
documented. Bidhit.com will be focused on growing its online auction
presence in attracting and sharing the enormous audience for online
auctions.
Forward-Looking Statements: This news release may include certain
forward-looking statements. Forward-looking statements may include, but
are not limited to, projections of revenue, income or loss and capital
expenditures, statements regarding future operations, financing needs,
plans relating to products or services of the Company, assessments of
materiality, predictions of future events and the effects of pending and
possible litigation, as well as assumptions relating to the foregoing.
In addition, when used in this discussion, the words ``anticipates'',
``believes'', ``estimates'', ``expects'', ``intends'', ``plans'' and
variations thereof and similar expressions are intended to identify
forward-looking statements. Such forward-looking statements are subject
to various risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of factors,
including but not limited to the Company's ability to manage rapid
growth as a result of internal expansion and strategic acquisitions, the
impact of competitive products and pricing, product demand and market
acceptance, new product development, reliance on key strategic
alliances, availability of raw materials, the regulatory environment,
fluctuations in operating results and other risks detailed from time to
time in the company's filings with the Securities and Exchange
Commission.
Contact:
Hollinger International Inc.
Tracy H. Krumme, 212/586-5666 (Investor Relations)
or
For Bidhit.com (Investor Relations)
Park Avenue Capital Corp., 800/953-8711
or
Bidhit.com, Inc.
J.B.McCrummen, 425/424-3660 (Marketing)
ir@bidhit.com
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