EXHIBIT 99.1
NEWS RELEASE
ROMTECH ANNOUNCES GALAXY ONLINE(TM) GAME STRATEGY
AND STRATEGIC PARTNERSHIP
- 2nd Quarter Revenues Expected To Be Up 150% -
LANGHORNE, PA (December 8, 1997) - RomTech, Inc. (NASDAQ: ROMT), a
developer and publisher of value priced consumer entertainment and
productivity software, today announced a strategic partnership with TVML,
Ltd., ("TVML") a United Kingdom based developer of internet based interactive
games.
Joseph A. Falsetti, Chief Executive Officer of RomTech, stated that,
"Our relationship with TVML enables us to aggressively develop market share in
the rapidly developing internet based game market utilizing the Galaxy brand
name. The Galaxy 'Superbranding' strategy, launched in February of this year,
continues to produce better than expected results. Our new Galaxy brand game
and productivity titles are enjoying the same high demand that our original
Galaxy titles are experiencing. This confirms the Galaxy branding strategy is
working." Falsetti added that, "Based on our current order activity, we expect
revenues for the second quarter to be approximately $2.6 million, an almost
150% increase as compared to last year's second quarter restated revenues of
$1.06 million. Earnings for the second quarter are expected to be 4 or 5 cents
per share versus a loss of 12 cents per share for the second quarter last
year. First half fiscal 1998 revenues are expected to approximately match all
of fiscal 1997 revenues of $4.4 million. Our goal of doubling revenues in
fiscal 1998 to over $8 million is predicated on the success of our Galaxy
Series products. The execution of the Galaxy Series branding strategy is
achieving results above our expectations."
Under the terms of the TVML agreement, RomTech has gained
exclusive rights in North America to publish and distribute a Galaxy version
of TVML's internet based interactive games. RomTech plans to launch Galaxy
Online(TM) in January 1998. Galaxy OnLine will provide all buyers of RomTech's
Galaxy of Games(TM) titles access to unlimited free internet game play
eventually utilizing TVML's current library of over 30 web based interactive
games. The Galaxy OnLine site will offer fun, exciting, challenging
multi-player game experiences for all ages. The theme of the Galaxy OnLine
website is compatible with intuitive Windows-95(TM) based graphically
rich interfaces. Additional features such as email; chat rooms; FAQ's and
coming attractions will be accessible to further enrich the Galaxy OnLine
users' experience.
"We will premier action, board, card, trivia and strategy games in our
initial launch," said Tara Greco, Senior Product Manager for Galaxy OnLine.
"We hope to reach new customers with this terrific new internet offer. It's a
logical extension of our existing game strategy and should strengthen the
Galaxy Series brand positioning. Our goal is to build brand awareness in this
new game arena," added Greco.
Bill Acheson, RomTech's Vice President of Sales and Marketing,
explained, "We anticipate a major Spring promotion of Galaxy OnLine. We plan
to introduce 6 new Galaxy of Games/Galaxy OnLine products at retail to support
the Galaxy OnLine initiative. As we expand the product offering at retail, we
will coordinate introducing new categories of games online. Consumers of
Galaxy products will now have a wealth of new games available to them,
providing hours of safe, easy to enjoy, family fun and entertainment." Acheson
stated further, "During the Thanksgiving week sales period a major national
retailer reported that RomTech's Galaxy of Games titles accounted for 20% of
their total budget software sales. This is remarkable evidence of the growing
strength of the Galaxy brand. Incremental revenues from the Galaxy OnLine
products during the second half could enable us to exceed our goals for fiscal
1998."
RomTech, headquartered in Langhorne, PA was founded in 1992 and
went public in 1995. The Company develops, publishes, markets and resells a
diversified line of personal computer ("PC") software primarily for consumer
and business applications. The Company promotes the Galaxy of Games(TM),
Galaxy of Home Office Help(TM) and Galaxy Deluxe(TM) brand names (the "Galaxy
Series") in order to generate customer loyalty, encourage repeat purchases and
differentiate the Galaxy Series products to retailers and consumers. The
Company targets the market of home and small business personal computer users.
The Company's sales are primarily made through a large national distributor
that sells to large national retail chain stores.
This press release contains certain forward-looking statements, including
without limitation, statements regarding the success of RomTech's Galaxy
branding strategy, RomTech's expected earnings and revenues for the second
quarter ending December 31, 1997, expected revenues for the 1998 fiscal year
and the success of the Galaxy OnLine games. The actual results achieved by
RomTech, and the factors that could cause actual results to differ materially
from those indicated by the forward-looking statements, are in many ways
beyond RomTech's control. RomTech wishes to caution readers that the following
important factors, among others, could affect RomTech's actual results and
could cause RomTech's actual results for the second quarter ending December
31, 1997 and for the 1998 fiscal year to differ materially from those
expressed in this press release: the allocation of adequate shelf space for
RomTech's products in major chain retail stores; successful sell-through
results for RomTech's products at retail stores; the inability to obtain
and/or develop content for its products in a cost effective manner; the
continued expansion of the computer in homes in North America; the ability to
deliver products in response to orders within a commercially acceptable time
frame; downward pricing pressure; the timeliness and success of developing and
selling products; the costs of developing, producing and marketing such
products; access to distribution channels; consumers' continuing demand for
value-priced software; the renewal of licenses for key software products;
competition; and various other factors, many of which are beyond the Company's
control.
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