EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Tag-It Pacific, Inc.
Jonathan Markiles, VP Marketing
818-444-4100
info@tagitpacific.com
TAG-IT PACIFIC, INC. RAISES $6 MILLION IN PRIVATE PLACEMENT TRANSACTION
Los Angeles, Ca. June 2, 2003 --Tag-It Pacific, Inc. (AMEX: TAG) today reports
that it has successfully raised approximately $6 million in a private placement
transaction with five institutional investors. On May 30, 2003, Tag-It Pacific,
Inc. entered into securities purchase agreements with these institutional
investors for the purchase of 1.725 million shares of the company's common stock
at a price per share of $3.50, representing an approximate 15% discount to the
trailing 10 day average closing price ended May 19, 2003. After commissions and
expenses, the net proceeds to the Company will be approximately $5.5 million. In
connection with the private placement, Tag-it has also entered into a
registration rights agreements with the investors.
Colin Dyne, CEO of Tag-It commented, "We are pleased to have been able
to successfully complete this transaction. Our company has experienced
significant growth in the past several years, and we are implementing a variety
of initiatives that we believe will contribute to continued growth. Our 3
divisions, Managed Trim Solution, Talon Zippers and TekFit Waistbands all have
considerable potential. To optimize this potential, investment is needed in more
vertical manufacturing capabilities, new information technologies and additional
equipment to support our growing sales. These initiatives are intended to
improve our bottom line performance, our global competitiveness as well as our
ability to take advantage of emerging opportunities in our industry."
ABOUT TAG-IT PACIFIC: Tag-It specializes in the distribution of a full
range of trim items to manufacturers of fashion apparel and licensed consumer
products, and specialty retailers and mass merchandiser brands. Tag-It acts as a
full service outsourced trim management department for manufacturers of fashion
apparel such as Tarrant Apparel Group and Azteca Production International.
Tag-it also serves as a specified supplier of trim items to specific brands,
brand licensees and retailers, including Levi Strauss & Co., Abercrombie &
Fitch, Express, The Limited, Miller's Outpost and Lerner, among others. Tag-It
has positioned itself as a fully integrated single-source supplier of a full
range of trim items for manufacturers of fashion apparel. The Company's business
focuses on servicing all of the trim requirements of its customers at the
manufacturing and retail brand level of the fashion apparel industry. Tag-It
offers customers its MANAGED TRIM SOLUTION(TM), an Internet-based, virtual trim
department, covering the complete management of ordering, production, inventory
management and just-in-time distribution of their trim and packaging
requirements.
ABOUT TALON INTERNATIONAL: Talon International, a wholly-owned
subsidiary of Tag-it Pacific, distributes zippers under its TALON brand name to
apparel brands and manufacturers such as VF Corporation, Tropical Sportswear,
Levi Strauss & Co., Abercrombie & Fitch, Target Stores, Walmart, Tommy Hilfiger,
Express, among others. In December 2001, Tag-it purchased the TALON trademark
and trade names. TALON is a 100-year-old brand, which is well known for quality
and product innovation. TALON was the original pioneer of the formed wire metal
zipper for the jeans industry and is a specified zipper brand for manufacturers
in the sportswear and outerwear markets. We have introduced a completely revised
high quality line of zippers, broadened distribution to Asia, Mexico and Central
America, negotiated with new distributors and initiated a new sales and
marketing effort for this brand. TALON is promoted both within our trim
packages, as well as a stand-alone product line. Talon enjoys tremendous brand
recognition and brand equity in the apparel industry worldwide.
ABOUT TEKFIT: In 2002, Tag-it created a new division under the TEKFIT
brand name. This division develops and sells apparel components that utilize the
patented Pro-Fit technology, including a stretch waistband. We market these
products to the same customers targeted by our MANAGED TRIM SOLUTION and TALON
zipper divisions.
FORWARD LOOKING STATEMENTS:
With the exception of the historical information, this press release contains
forward-looking statements, as referenced in the Private Securities Litigation
Reform Act. Forward-looking statements are inherently unreliable and actual
results may differ materially. Factors which could cause actual results to
differ materially from these forward-looking statements include the
unanticipated loss of one or more major customers, economic conditions, the
availability and cost of financing, the risk of a softening of customer
acceptance of the Company's products, risks of introduction by competitors of
trim management systems with similar or better functionality than our Managed
Trim Solution, pricing pressures and other competitive factors, potential
fluctuations in quarterly operating results, our management of potential
growth and the risks of expansion into new business areas. These and other risks
are more fully described in the Company's filings with the Securities and
Exchange Commission including the Company's most recently filed Annual Report on
Form 10-K and Quarterly Report on Form 10-Q, which should be read in conjunction
herewith for a further discussion of important factors that could cause actual
results to differ materially from those in the forward-looking statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.