Exhibit 99.1
Adsouth Partners, Inc. Provides Update On Genco Power Solutions Subsidiary And
Recently Announced Transaction
Adsouth Partners, Inc. (OTCBB:ASPR):
- -- Genco continues rapid growth: Enters into contracts for total orders valued
at $2 million, an increase of over 100% since March 20, 2006
- -- Establishes commercial sales group
- -- Expands sales infrastructure by opening five new sales and service offices
throughout Florida
Adsouth Partners, Inc. (OTCBB:ASPR), today provided a business update on its
majority-owned subsidiary, Genco Power Solutions (Genco),
http://www.gencopowersolutions.com, which markets, sells, installs and services
integrated power generator systems to residential homeowners and commercial
businesses throughout Florida and the recently announced transaction wherein
Adsouth will sell all of its product brands from its consumer product portfolio
to MFC Development Corp. in a cash and stock transaction to be valued at $9.5
million.
Genco Power Solutions Update
Once the transaction is completed, Adsouth's Genco subsidiary will be the
primary driver of the Company's Product Division. Due to Adsouth's experience
and expertise in direct response marketing, Genco is positioned to differentiate
itself compared to its competitors and continue to expand.
As of April 14, 2006, Genco has entered into contracts for 90 orders for standby
generators or approximately $2.0 million in total orders. The approximately $2.0
million in total orders represent over a 100% increase since Adsouth's last
update on Genco on March 20, 2006. The Residential Sales Group's average order
per contract is approximately $20,960 or about $1.82 million in total orders.
The newly formed Commercial Sales Group's average order per contract is
approximately $58,866 or about $177,000 in total orders.
Genco's direct to consumer advertising program is ongoing and has generated over
3,500 leads through April 14, 2006. The subsidiary marketing strategy is based
on a traditional direct response marketing matrix and to date has invested
$77,500 in advertising expenditures, which calculates to the effective rate of a
$22.14 cost per lead.
In order to expand the geographic penetration of the business, Genco is opening
five new sales and service offices in Florida. The new offices will be located
in Orlando, Ft Lauderdale, Naples, Tampa and Daytona Beach. These five new
offices will be a
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platform to add additional value to the process of selling and servicing
integrated power generator systems and will help increase Genco's overall market
share. Management's objective is to have all the new offices opened and
operational by end of the second quarter 2006. Genco is currently exploring the
expansion of its installation and service infrastructure by adding additional
facilities in Florida.
John Cammarano, Adsouth's Chief Executive Officer commented, "This is an
exciting time at Adsouth, as Genco has established its brand and become one of
the leaders in marketing, selling, installing and servicing integrated power
generator systems in Florida. Genco is experiencing a tremendous interest in its
products and service model, especially as the 2006 hurricane season approaches.
Today, we are focused on building a more responsive, efficient and profitable
business and the opening of these five new offices will allow Genco to enhance
service at the local level and expand sales efforts throughout State."
Transaction Update
On April 11, 2006 Adsouth announced the signing of a Letter of Intent wherein
Adsouth will sell all of its product brands from its consumer product portfolio
to MFC in a cash and stock transaction to be valued at $9.5 million. The
transaction which is subject to a complete due diligence, the execution of a
definitive agreement and the satisfaction of closing conditions is expected to
close in the second quarter of 2006.
Under the terms of the letter of intent, MFC Development Corp., through a wholly
owned subsidiary NEWCO, will acquire all of the assets of its retail
distribution and product brands company Adsouth, Inc., as well as the brands,
DermaFresh, E70, and Mitsu and the distribution rights to Simon Solutions from
Adsouth for $4.0 million in cash and $5.5 million of MFC common stock. The
transaction did not include any assets or activities related to Adsouth's
majority owned subsidiary Genco Power Solutions or the Company's Advertising
Division.
In addition, on April 11, 2006 Adsouth's Board of Directors approved the
distribution of the stock in MFC Development to all of the Company's
stockholders. Any distribution of the MFC Development stock to Adsouth's
stockholders will be subject to the registration of the MFC Development stock
pursuant to the Securities Act of 1933. The value of the dividend to
stockholders will be dependent upon the market price of the MFC Development
stock at the time of the distribution.
Conference Call - April 20, 2006 at 11:00 a.m. ET
Adsouth will hold a conference call for investors today April 20, 2006, to
discuss the update on its Genco Power Solutions subsidiary and discuss the
recently announced transaction wherein Adsouth will sell all of its product
brands from its consumer product portfolio to MFC Development Corp. in a cash
and stock transaction to be valued at $9.5 million. Investors who would like to
participate on the conference call should call 800-811-0667 if calling within
the United States or 1-913-981-4901 if calling internationally
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approximately 5 to 10 minutes prior to 11:00 a.m. or access the call via
Adsouth's website at http://www.adsouthpartners.com.
There will be a playback available of the conference until May 20, 2006. To
listen to the playback, please call 888-203-1112 within the United States or
719-457-0820 internationally. The pass code is 4844732 for the replay. The call
is also being webcast by ViaVid Broadcasting and can be accessed at Adsouth's
website at http://www.adsouthpartners.com. The webcast can also be accessed at
ViaVid's website at http://www.viavid.net. The webcast may be accessed through
June 20, 2006 on either site.
About Adsouth Partners, Inc.
Adsouth Partners is a vertically integrated direct response marketing company
that generates revenues from the placement of advertising, the production of
advertisements, creative advertising and public relations consulting services.
Since mid 2004, it has expanded its activities as it obtained the rights to
products that it markets and sells to retail outlets. Since December 2005,
through a majority-owned subsidiary, Genco Power Solutions, Inc., the Company
has been marketing integrated power generator systems to residential homeowners
and commercial business throughout Florida. A complete list is available on our
website at http://www.adsouthinc.com and a preview of the products offered is
available at http://www.dermafresh.com
Certain statements in this news release may contain forward-looking information
within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6
under the Securities Exchange Act of 1934, and are subject to the Safe Harbor
created by those rules. All statements, other than statements of fact, included
in this release, including, without limitation, statements regarding potential
future plans and objectives of the company, are forward-looking statements that
involve risks and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Events that may arise
could prevent the implementation of any strategically significant plan(s)
outlined above. The Company cautions that these forward-looking statements are
further qualified by other factors including, but not limited to, those set
forth in the Company's Form 10-K filing, its registration statements and other
filings with the United States Securities and Exchange Commission (available at
www.sec.gov). The Company undertakes no obligation to publicly update or revise
any statements in this release, whether as a result of new information, future
events or otherwise.
Adsouth Partners, Inc., Boca Raton
John Cammarano, 561-750-0410
or
Alliance Advisors
John Lovallo, 203-431-0587
jlovallo@allianceadvisors.net
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