For Immediate Release Contact: Lori Rosen
Nick Crispe
212/255-8455
INDIVIDUAL INVESTOR GROUP AGREES TO ACQUIRE 19.9% OF ONLINE VENTURE
CAPITAL SITE, VENTUREHIGHWAY.COM, FOR $3.2 MILLION IN ADVERTISING
Kirlin Holding Retains 80.1% Stake in VentureHighway.com
NEW YORK, June 2, 1999 - Kirlin Holding Corp. (Nasdaq: KILN), Individual
Investor Group, Inc. (Nasdaq: INDI) and VentureHighway.com Inc. today announced
that Individual Investor Group has agreed to acquire 19.9% of
VentureHighway.com, a Kirlin Holding subsidiary operating an Internet-based
service for matching entrepreneurs and financing sources. In exchange,
VentureHighway.com will receive $3.2 million of advertising over 2-1/2 years in
Individual Investor Group's online and print properties. In addition, Individual
Investor Group agreed to acquire 150,000 shares of Kirlin Holding at a price of
$5.00 per share.
VentureHighway.com has recently launched its financing service at
http://www.VentureHighway.com, to fully utilize the power of the Internet to
make the process of financing early-stage opportunities more time efficient,
cost effective and far reaching. Entrepreneurs will be able to log onto the site
and apply to have a brief description of their company and funding needs posted
on the Internet. Concurrently, financing sources such as venture capital funds,
broker-dealers, investment banks and "angels" in search of business
opportunities can log on to the site and search the VentureFinder database for a
potential match.
"The Internet can revolutionize the financing of early-stage companies,
in the same manner as the Internet is revolutionizing the securities brokerage
industry and so many other industries," commented Jonathan Steinberg, Chairman
and Chief Executive Officer of Individual Investor Group. Mr. Steinberg
continued, "This investment is our latest and largest barter transaction with an
emerging online business (our stake in Wit Capital was acquired through barter
as well), and should significantly add to our operating results. As a result of
this arrangement, we expect to recognize at least $1.1 million of online
advertising revenues, and at least $400,000 of print advertising revenues, over
the next four quarters."
"Aggressive promotion of our service to attract both entrepreneurs and
the financiers will be a key to our success," stated Howard Nevins, President of
VentureHighway.com. "Individual Investor Group should provide a perfect fit, as
its online and print properties - Individual Investor Online
(http://www.iionline.com), InsiderTrader.com (http://www.insidertrader.com),
Individual Investor magazine and Ticker magazine - are focused on the world of
investing and reach the sophisticated demographic base that we desire."
-more-
II/Venture - Page Two
To help attract financing sources, VentureHighway.com first will screen
the financing requests. Entrepreneurs submitting plans accepted for posting on
the site will be charged a small listing fee and a brief summary (not including
the company name, address and contact numbers) of their company and its
financing request will be posted on www.VentureHighway.com. Financing sources
will be able to freely use the VentureFinder database to search for business
opportunities. If a financing source finds a company of interest, the financing
source can request to be introduced to such company to obtain its business plan
and other information. VentureHighway.com will then notify the entrepreneur of
the potential financing source, enabling the two parties to attempt to reach a
financing agreement. In the event of a financing, VentureHighway.com will
collect a success fee, once it obtains its broker-dealer registration.
VentureHighway.com expects to obtain its broker-dealer registration promptly.
Kirlin Securities, Inc., the primary broker-dealer operating subsidiary of
Kirlin Holding will earn any success fees earned prior to VentureHighway.com's
registration.
About Individual Investor Group
Individual Investor Group, Inc. (Nasdaq: INDI) is a financial media
company that publishes and markets Individual Investor magazine (circulation
500,000), Individual Investor Online (http://www.iionline.com), Individual
Investor's Special Situation Report, InsiderTrader.com
(http://www.insidertrader.com) and Ticker magazine.
About Kirlin Holding Corp.
Kirlin Holding Corp. (Nasdaq: KILN) is a holding company engaged in
securities brokerage, securities trading and merchant banking activities through
its primary operating subsidiary, Kirlin Securities, Inc. Kirlin Securities is a
full service retail oriented brokerage firm, and is a member of the NASD, SIPC
and MSRB. To obtain an "Investor Kit" or more information regarding Kirlin
Holding Corp., contact our Marketing Department at 1-800-899-9400 ext. 155, or
visit our Website http://www.kirlin.com.
About VentureHighway.com
VentureHighway.com Inc. operates at http://www.VentureHighway.com an
Internet-based service for matching entrepreneurs and financing sources.
Designed to fully utilize the power of the Internet to make the process of
financing early-stage opportunities more time efficient, cost effective and far
reaching, VentureHighway.com encourages entrepreneurs to submit a brief
description of their company and funding needs, for posting on the
VentureHighway.com site. Financing sources such as venture capital funds,
broker-dealers, investment banks and "angels" in search of business
opportunities can log on to the site and search the VentureFinder database for a
potential match. If a financing source finds a company of interest,
VentureHighway will facilitate the introduction of the parties.
VentureHighway.com is 80.1% owned by Kirlin Holding Corp. and 19.9% owned by
Individual Investor Group, Inc.
-more-
II/Venture - Page Three
Safe Harbor Notice Under the Private Securities Litigation Reform Act of 1995:
Except for historical information, the above statements of this press
release (including without limitation expressions of expectation, belief,
anticipation or estimation of Individual Investor Group, Inc. Kirlin Holding
Corp. or VentureHighway.com Inc.) are forward-looking statements that are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those set forth in the forward-looking statements. These
risks and uncertainties include, among others, (1) the possibility that
VentureHighway.com will be unable (A) to attract a meaningful number of persons
to submit financing requests for posting on the VentureHighway site
(www.VentureHighway.com), (B) to attract a meaningful number of persons who are
able and willing to provide financing in response to information posted on the
VentureHighway site or (C) obtain necessary regulatory approvals to permit
VentureHighway to receive transactional fees with respect to financings arranged
through use of the VentureHighway site; (2) the possibility that Individual
Investor will be unable to deliver the level of advertising it has committed,
due to declining page views or magazine subscribers and/or declining advertising
rates (online or in print); and (3) the risks detailed in the most recent
filings on Form 10-K and Form 10-Q filed with the Securities and Exchange
Commission by Individual Investor and by Kirlin Holding, respectively (which
filings are available from the respective companies or at www.sec.gov). These
forward-looking statements speak only as of the date of this press release.
After the issuance of this release, Individual Investor, Kirlin Holding and/or
VentureHighway.com might come to believe that certain forward-looking statements
contained in this release are no longer accurate. None of those parties shall
have any obligation, however, to release publicly any corrections or revisions
to any forward-looking statements contained in this release.
# # #
For Immediate Release Contact: Lori Rosen
Nick Crispe
212/255-8455
KIRLIN HOLDING CORP. AGREES TO SELL 150,000
SHARES TO INDIVIDUAL INVESTOR GROUP
NEW YORK, June 2, 1999 - Kirlin Holding Corp. (Nasdaq: KILN) and Individual
Investor Group, Inc. (Nasdaq: INDI) today announced that Individual Investor
Group has agreed to purchase 150,000 shares of Kirlin Holding, at a price of
$5.00 per share. The parties also today announced that Individual Investor Group
has agreed to acquire 19.9% of VentureHighway.com Inc., a Kirlin Holding
subsidiary operating an Internet-based service for matching entrepreneurs and
financing sources, for $3.2 million of advertising. Kirlin Holding will retain
an 80.1% stake of VentureHighway.com.
David Lindner, Chairman of Kirlin Holding, stated, "We are pleased that
Individual Investor Group believes in our ability to deliver value to our
shareholders, and we look forward to working with Individual Investor Group both
as a shareholder and as a partner in VentureHighway.com. We are particularly
excited at the prospect of creating value in VentureHighway.com. Indeed, based
upon the value to be received for Individual Investor's 19.9% stake,
VentureHighway.com has an implied value approaching that of Kirlin Holding
today."
Jonathan Steinberg, Chairman and Chief Executive of Individual Investor
Group, said, "We feel that Kirlin, which reported $1 million in net income in
the past quarter, is undervalued, particularly in light of the potential value
of its 80.1% stake in VentureHighway.com."
About Kirlin Holding Corp.
Kirlin Holding Corp. (Nasdaq: KILN) is a holding company engaged in
securities brokerage, securities trading and merchant banking activities through
its primary operating subsidiary, Kirlin Securities, Inc. Kirlin Securities is a
full service retail oriented brokerage firm, and is a member of the NASD, SIPC
and MSRB. To obtain an "Investor Kit" or more information regarding Kirlin
Holding Corp., contact our Marketing Department at 1-800-899-9400 ext. 155, or
visit our Website http://www.kirlin.com.
About Individual Investor Group
Individual Investor Group, Inc. (Nasdaq: INDI) is a financial media
company that publishes and markets Individual Investor magazine (circulation
500,000), Individual Investor Online (http://www.iionline.com), Individual
Investor's Special Situation Report, InsiderTrader.com
(http://www.insidertrader.com) and Ticker magazine.
-more-
Individual Investor/VentureHighway Page Two
About VentureHighway.com
VentureHighway.com Inc. operates at http://www.VentureHighway.com an
Internet-based service for matching entrepreneurs and financing sources.
Designed to fully utilize the power of the Internet to make the process of
financing early-stage opportunities more time efficient, cost effective and far
reaching, VentureHighway.com encourages entrepreneurs to submit a brief
description of their company and funding needs, for posting on the
VentureHighway.com site. Financing sources such as venture capital funds,
broker-dealers, investment banks and "angels" in search of business
opportunities can log on to the site and search the VentureFinder database for a
potential match. If a financing source finds a company of interest,
VentureHighway will facilitate the introduction of the parties.
VentureHighway.com is 80.1% owned by Kirlin Holding Corp. and 19.9% owned by
Individual Investor Group, Inc.
Safe Harbor Notice Under the Private Securities Litigation Reform Act of 1995:
Except for historical information, the above statements of this press
release (including without limitation expressions of expectation, belief,
anticipation or estimation of Individual Investor Group, Inc. Kirlin Holding
Corp. or VentureHighway.com Inc.) are forward-looking statements that are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those set forth in the forward-looking statements. These
risks and uncertainties include, among others, (1) the possibility that
VentureHighway.com will be unable (A) to attract a meaningful number of persons
to submit financing requests for posting on the VentureHighway site
(www.VentureHighway.com), (B) to attract a meaningful number of persons who are
able and willing to provide financing in response to information posted on the
VentureHighway site or (C) obtain necessary regulatory approvals to permit
VentureHighway to receive transactional fees with respect to financings arranged
through use of the VentureHighway site; (2) the possibility that Individual
Investor will be unable to deliver the level of advertising it has committed,
due to declining page views or magazine subscribers and/or declining advertising
rates (online or in print); and (3) the risks detailed in the most recent
filings on Form 10-K and Form 10-Q filed with the Securities and Exchange
Commission by Individual Investor and by Kirlin Holding, respectively (which
filings are available from the respective companies or at www.sec.gov). These
forward-looking statements speak only as of the date of this press release.
After the issuance of this release, Individual Investor, Kirlin Holding and/or
VentureHighway.com might come to believe that certain forward-looking statements
contained in this release are no longer accurate. None of those parties shall
have any obligation, however, to release publicly any corrections or revisions
to any forward-looking statements contained in this release.
# # #