Wednesday, August 23, 2006
SENDTEC REPORTS RECORD FIRST HALF REVENUE AND DEBENTURE HOLDER APPROVAL TO
RESTRUCTURE LONG-TERM DEBT
SendTec, Inc. OTCBB: SNDN yesterday reported record revenue for the first half
of 2006. Revenue and gross margin from SendTec Acquisition Corp. for the six
month period ending June 30, 2006 grew by approximately 15% and 20%,
respectively, over the six month period ending June 30, 2005. Had results been
reported on a consolidated basis for the full six month period ending June 30,
2006, revenues would have been $20.7 million, a record for SendTec Acquisition
Corp. Results reported in its quarterly report on form 10-QSB for June 30, 2006
exclude an approximate one month period prior to the acquisition of 100% of
SendTec Acquisition Corp. in February 2006. Much of this growth was attributable
to its Search Engine Marketing business line which has grown by 147% over the
comparable period. In addition, the company successfully completed a major
milestone towards restructuring its $34.95 million 6% Senior Secured Debentures.
The restructuring of the debentures will soon be submitted for required
stockholder approval.
SendTec CEO Paul Soltoff stated: "In the last six months we've generated solid
revenue and gross margin growth, while at the same time overcoming many
difficult challenges, including selling off and closing our unprofitable
divisions, changing our name to provide a singular focus, and most importantly,
the planned comprehensive restructuring of our long-term debentures incurred in
connection with the acquisition of SendTec. During this process, our management
team has stayed committed, while improving the company's market position across
its major business lines. Upon completion of our planned financial
restructuring, SendTec and its unique technology-based marketing platforms will
be positioned to move forward with renewed focus in the rapidly evolving
Internet and Multi-Channel advertising marketplaces."
About SendTec
Today, marketers are facing incredible pressure to generate a successful return
on investment. SendTec has built a stellar organization that provides a
comprehensive range of integrated, technology-based services for leading
multi-channel marketers, including search engine marketing, online
pay-for-performance media and direct response television advertising. Its
services are positioned to improve advertising ROI across online and offline
marketing channels. Core to SendTec's success is SearchFactz(TM), a technology
enabled search engine marketing solution that improves the bidding process
through providing automated alerts to tactical direct marketers who then make
bidding and marketing decisions to dramatically improve ROI and conversion
volume. This full-service SEM solution, as well as SendTec's other services,
includes strategic direct response consulting, expert copywriting, creative
services and analytics to maximize advertising success.
Caution Concerning Forward-Looking Statements
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. SendTec'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 Information: SendTec, Inc. Saint Petersburg Donald Gould, 727-576-6630
http://www.SendTec.com
