EXHIBIT 99.1
RELATIONSERVE MEDIA, INC. ANNOUNCES
AGREEMENT TO ACQUIRE SENDTEC INC.
DEAL VALUED AT $50 MILLION AND CREATES LEADING
PLAYER IN THE ELECTRONIC MARKETING SPACE
FORT LAUDERDALE, Fla., August 10, 2005 -- RELATIONSERVE MEDIA, INC. (OTCBB:
RSVM) a leading provider of permission-based e-marketing solutions, announced
today the execution of a definitive agreement to acquire the assets of SendTec
Inc., a wholly owned subsidiary of theglobe.com (OTCBB: TGLO). SendTec Inc. is
one of the nation's foremost direct marketing agencies specializing in
interactive advertising. The combined entity will operate under the
RelationServe Media name and in 2005 is expected to generate pro-forma revenues
and operating income in excess of $70 million and $10 million, respectively. In
addition, RelationServe Media expects the acquisition to be accretive to 2005
earnings. On a pro forma basis, the combined companies would have generated over
$47 million of revenue and over $3.5 million in operating income in 2004. The
transaction is expected to close within sixty days. Consideration for this
transaction is comprised of more than $50 million in cash and stock.
RelationServe Media also announced the following additions to its management
team. Paul Soltoff, formerly the founder and CEO of SendTec Inc., will become
the CEO of RelationServe Media and will also join the company's Board of
Directors. Mr. Soltoff has thirty years of experience in direct marketing and is
regarded as a pioneer in electronic direct marketing. Eric Obeck, formerly the
President of SendTec Inc., will become the new President and Donald Gould Jr.,
formerly the CFO of SendTec Inc., will become the new CFO of RelationServe
Media.
RelationServe Media's current CEO, Mandee Heller Adler, will continue to run the
permission-based e-marketing business as President of RelationServe Access, a
wholly-owned subsidiary of RelationServe Media. In addition, Ohad Jehassi,
currently RelationServe Media's COO, has been named President of friendsand.com,
another wholly-owned subsidiary of RelationServe Media. Warren Musser will
remain as Chairman of the newly combined companies. The management changes take
effect upon consummation of the acquisition.
"The acquisition of SendTec's physical assets, as well as the intellectual
assets of its management team, positions RelationServe Media as a major player
in the electronic marketing space," commented Warren Musser, Chairman of the
Board for RelationServe Media. "Adding SendTec's digital advertising, direct
response TV advertising and its offline-to-online tracking and reporting
services to the suite of products already offered by RelationServe Media creates
a dynamically synergistic fit that will expand the company's selling
opportunities."
Paul Soltoff, founder and CEO of SendTec, Inc., commented, "The combined company
is a powerhouse in the direct marketing industry providing a complete suite of
integrated data services, new media technologies and full-service direct
marketing acquisition capabilities to national advertisers." Mr. Soltoff went on
to say, "In a multi-channel media world where the lines are blurring,
RelationServe Media enables marketers to target media on a highly efficient and
ROI-centric basis to maximize their marketing investments in the fastest growing
advertising markets in the world: the Internet and Direct Response Television."
About Relationserve Media, Inc.
Headquartered in Fort Lauderdale, Florida, RelationServe Media develops and
executes client-tailored online and offline marketing programs. As part of its
full suite of marketing solutions, RelationServe Media owns and manages one of
the industry's largest security-compliant email databases with over 175 million
security- compliant email addresses and a total postal database of 180 million
records for its client's direct marketing initiatives. RelationServe Media
believes that it has the industry's largest and most accurate database for
appending and enhancing customer database records with information on more than
85 million opt-in consumers. In addition, RelationServe Media owns a collection
of over 60 web-mining properties that generate over 10 million online
registration page views per month for client lead generation initiatives. For
more information, visit HTTP://WWW.RELATIONSERVE.COM.
About SendTec, Inc.
SendTec is a full service direct marketing company specializing in Internet
customer acquisition and DRTV advertising. The company's strategy is to generate
ROI-centric, scalable results. The company is technology enabled and 100%
accountable to achieving objectives. The company has extensive
multi-disciplinary skills in-house to help clients acquire, retain and build
profitable, long-term relationships with their customers. SendTec provides
comprehensive Internet Advertising and DRTV Services including performance-based
Internet media DRTV media buying. The company has a full suite of Internet and
DR tracking systems including the only Patent-pending DRTV to Internet tracking
service. For more information visit the company's website:
HTTP://WWW.SENDTEC.COM.
Safe Harbor Statement under the Private Securities Litigation reform Act of
1995: Forward-looking statements often are proceeded by words such as
"believes", "expects", "may", "anticipates", "plans", "intends", "assumes",
"will" or similar expressions. Forward-looking statements reflect management's
current expectations, as of the date of this press release, and involve certain
risks and uncertainties. RelationServe Media's actual results could differ
materially from those anticipated in these forward-looking statements as a
result of various factors. The statements that are not historical facts
contained in this press release are "forward-looking statements" that involve
certain risks and uncertainties, including, but not limited to, risks associated
with the uncertainty of future financial results, additional financing
requirements, development of new products, the effectiveness, probability and
marketability of such products, the ability to protect proprietary information,
the impact of current, pending or future legislation and regulation on the
electronic marketing industry, the impact of competitive products or pricing,
technological changes, the effect of general economic and business conditions
and other risks and uncertainties detailed in the Company's filings with the
Securities and Exchange Commission.
Contact:
Summit Financial Partners, LLC
Anthony D. Altavilla, 317-218-0204
