EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For more information, please contact:
Barry A. Rothman
561-483-7743
ELINE ENTERTAINMENT SIGNS LETTER OF INTENT TO ACQUIRE COMPANY HOLDING THE
RIGHTS TO PURCHASE LEADING PIGSKIN LEATHER PRODUCER IUV VRHNIKA
Knoxville, Tennessee, March 24, 2004 - - Eline Entertainment Group, Inc. (OTC
Bulletin Board: EEGI) (Frankfurt Stock Exchange: EO9) today announced that as
part of its strategic plan to acquire undervalued businesses operating in
traditional industries, it has signed a letter of intent to acquire a majority
interest in Paolo Nevada, Inc., a privately held company that holds the rights
to purchase a majority of the issued and outstanding securities of
Slovenia-based IUV Vrhnika Vrhnika d.d. (IUV), a leading producer of
high-quality pigskin leather and leather goods.
Paolo Nevada has represented to Eline that it is concurrently executing
contracts for the purchase of a majority of the issued and outstanding
securities of IUV, a key condition to the closing of which is the payment of
approximately $6 million to the sellers as consideration for the purchase of
such securities.
The transaction is subject the completion of satisfactory due diligence on the
part of Eline Entertainment with respect to both Paolo Nevada and IUV, as well
as the completion by Eline Entertainment of a financing for a minimum of $6
million or the facilitation of such financing by Eline Entertainment, as Eline
deems appropriate. No further terms of the proposed transactions were
immediately disclosed.
IUV (http://www.iuv.si/english), originally established more than 50 years ago,
today employs about 900 employees. In 2003, IUV sold approximately 3.5 million
square meters of leather in more than 40 countries, the primary markets being
Italy, Turkey, Germany, Great Britain, United States, Canada, India, and Spain.
IUV's clients include many of the world's leading garment, fashion, leatherwear,
footwear and automotive companies, such as Gucci, Springfield, Prada, Hugo Boss,
Danier, Marks & Spencer, Sisley, DKNY, Gap (Banana Republic), Benetton,
Salvatore Ferragamo, Bally, Max Mara, Marina Rinaldi, ARA. Gabor, Salamander and
Volkswagen Group, to name a few.
Certain statements in this document and elsewhere by Eline Entertainment are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such information includes, without limitation,
the business outlook, assessment of market conditions, anticipated financial and
operating results, strategies, future plans, contingencies and contemplated
transactions of the company. Such forward-looking statements are not guarantees
of future performance and are subject to known and unknown risks, uncertainties
and other factors which may cause or contribute to actual results of company
operations, or the performance or achievements of the company, or industry
results, to differ materially from those expressed, or implied by the
forward-looking statements. In addition to any such risks, uncertainties and
other factors discussed elsewhere herein, risks, uncertainties and other factors
that could cause or contribute to actual results differing materially from those
expressed or implied for the forward-looking statements include, but are not
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limited to, events or circumstances which affect the ability of Eline
Entertainment to complete the proposed transactions with either Paolo Nevada or
IUV; if the transactions with Paolo Nevada and IUV are completed, events or
circumstances which affect the ability of Eline Entertainment and IUV to
integrate successfully and achieve the anticipated benefits of the transaction;
the ability of Eline Entertainment to obtain sufficient financing; the ability
of Eline Entertainment and IUV to operate profitably given Eline Entertainment's
history of operating losses; competitive pricing for each company's products;
fluctuations in demand; changes to economic growth in countries where Eline
Entertainment and IUV conduct their businesses; government policies and
regulations; and dilution to shareholders caused by the issuance of stock in the
course of completing the transactions with either Paolo Nevada or IUV. Eline
Entertainment undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or otherwise.
Investors are urged, however, to consult any further disclosures made on related
subjects in reports filed with the SEC. Moreover, securities offered will not be
or have not been registered under the Act and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements.
ABOUT ELINE ENTERTAINMENT
Eline Entertainment Group, Inc. is seeking to acquire undervalued opportunities
in traditional industries. Eline Entertainment currently has two divisions,
Industrial Holding Group and 24/7 MRI. Its Industrial Holding Group division
owns Industrial Fabrication and Repair, Inc., an established company with over
20 years of experience in component sales, machining, specialty design and
fabrication for conveyor systems used in the movement of raw materials, finished
goods and supplies in its customers' manufacturing processes. Its customers are
engaged in various industries in the manufacturing sector, including mining
operations, paper, steel mills, rock quarry operations and bottling facilities
located in the southeastern United States. Its customers include Coca-Cola,
PepsiCo, Tennessee Valley Authority, Kimberly- Clarke Corp., American Limestone,
Gerdau-AmeriSteel, Vulcan Materials Co., Harrison Construction, Blue Diamond
Coal, Carlex Glass, HBD Industries and Hartco Flooring. Eline's 24/7 MRI
division's goal is to become a high- tech radiology provider specializing in
MRI. 24/7 MRI's mission is to create a completely state-of-the-art radiology
service combining digital technology with high-speed Internet, and leading-edge
mobile MRI.
This press release contains forward-looking statements, some of which may relate
to Eline Entertainment Group, Inc., and which involve numerous risks and
uncertainties. Actual results, performance or achievements could differ
materially from those anticipated in such forward looking statements as a result
of certain factors, including those set forth in Eline Entertainment Group,
Inc.'s filings with the Securities and Exchange Commission.
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