COPPELL, Texas--April 9, 2001--Impreso.com, Inc. (Nasdaq:ZCOM):
TST/Impreso's Purchase of Business Forms Company Expected to Increase
Annual Sales by More Than 50%
Impreso.com, Inc., which through its subsidiaries is involved in (1) the manufacture and distribution of paper and film hard copy imaging products for commercial and home office applications, and (2) the development of eCommerce initiatives, today announced that its wholly owned subsidiary, TST/Impreso, has entered into an Asset Purchase Agreement to purchase the assets of the Sky division of Durango-Georgia Converting, LLC (``Sky'') for approximately $11.7 million.
Completion of the transaction, which is scheduled to close later this month, is subject to certain contingencies and standard conditions to closing.
Headquartered in Greencastle, Pennsylvania, Sky is a leading producer of business forms for a wide range of end markets. With annual sales in excess of $40 million, Sky has developed a reputation for consistent quality, reliable supply and outstanding customer service. Sky's core product consists of continuous feed business forms, which are produced in a wide range of sizes and colors, both with and without carbon. In addition, Sky has expanded and supplemented its product mix through the introduction of custom cut forms and higher margin add-on products (e.g., file folders).
Sky's manufacturing facility is located on a 5.2-acre site in Greencastle, Pennsylvania, and has a stable work force which produces high-quality products on modern machinery with what management believes is one of the lowest reject rates in the industry. Sky operates across a broad range of market segments, including large retailers, warehouse clubs, office product superstores, wholesalers, mail-order companies, co-operative buying groups, mega-distributors, paper merchants and independent distributors.
``We are pleased that Sky and its employees will join with TST/Impreso in a transaction that will result in a substantially larger company with the resources to aggressively expand its share of the business forms market,'' commented Dwight Staubs, General Manager of Sky.
``We are delighted to enter into an agreement to acquire the assets of Sky, which we consider one of the most outstanding companies in the continuous forms segment of the business forms industry,'' stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso.com, Inc. and TST/Impreso, Inc. ``A number of important synergies should result from the acquisition, including the ability to more effectively utilize Sky's existing manufacturing capacity in the production of continuous business forms, while allowing TST/Impreso to dedicate more of its production capacity to the manufacture of branded cut sheet and specialty imaging products. We should also realize important distribution efficiencies through freight cost savings and the elimination of certain public warehouse facilities that overlap between our two companies in certain geographic regions.''
``Upon completion of the proposed acquisition, we estimate that Impreso.com's consolidated annualized sales should exceed $115 million, and TST/Impreso will have significantly increased its share of the business forms market,'' continued Sorokwasz. ``We also expect the purchase of Sky to have a positive impact upon Impreso.com's earnings per share during the twelve months following the completion of the acquisition.'' In its fiscal year ended August 31, 2000, Impreso.com, Inc. earned $931,317 on net sales of approximately $74.1 million.
About Impreso.com, Inc.
Impreso.com, Inc. is a holding company for TST/Impreso, Inc. and HotSheet.com, Inc. TST/Impreso, Inc. is a manufacturer and distributor of hard copy imaging products for commercial and home use in domestic and international markets. HotSheet.com, Inc. primarily owns HotSheet.com, a single-page, online Internet directory with categorized links to premier web destinations. The Company's website domains are www.hotsheet.com, www.impreso.com, www.shopsheet.com and www.tstimpreso.com.
Impreso.com, Inc. is headquartered in Coppell, Texas, and its common stock trades on the Nasdaq National Market under the symbol ``ZCOM.''
This press release may include statements that constitute ``forward-looking'' statements, usually containing the words ``believe,'' ``estimate,'' ``project,'' ``expect'' or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products in the marketplace, competitive factors, new products and technological changes, paper prices and raw material costs, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
Impreso.com, Inc., Coppell
Marshall Sorokwasz, 972/462-0100, ext. 103
or
RJ Falkner & Company, Inc.
Investor Relations Counsel, 800/377-9893
info@rjfalkner.com