Aussie Apparel Group Signs Hot Tuna Licensee for UK & Ireland; Agreement Requires Minimum Sales of US$14.1 Million Over First Five Years.Business Editors LOS ANGELES--(BUSINESS WIRE)--May 28, 2003 Aussie Apparel Group Ltd. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AASI AASI American Association of Snowboard Instructors (affliated with Professional Ski Instructors of America) AASI Abel Assessment for Sexual Interest AASI Automobile Association of South India ), an emerging growth apparel company focused on the extreme sports extreme sports Sports events characterized by high speed or high risk. Such sports include aggressive inline skating, wakeboarding, street luge, skateboarding, and freestyle bicycle events (wherein tricks such as back flips are performed on a bicycle). enthusiast, announced today that on May 15 it signed an agreement with Revo (UK) Ltd. to be the exclusive licensee for the Company's Hot Tuna brand in the United Kingdom and Ireland. The agreement with Revo calls for minimum sales of US$14.1 million (UK GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 8.7 million) over the next five years based on exchange rate as of 5/15/03 of UK GBP 1.00 per US$1.617. This announcement comes one month after the company announced its first licensing agreement with Frontier International Holdings for Australia/New Zealand in a agreement that requires minimum sales of AUS AUS abbr. Army of the United States $53.8 million over five years. Bruce MacGregor Bruce MacGregor (born April 26, 1941, in Edmonton, Alberta) was a professional ice hockey forward in the National Hockey League. During his 15 year career, MacGregor played for the Detroit Red Wings and New York Rangers, scoring 213 goals and 257 assists in 893 games. , President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Aussie Apparel Group said, "We will continue to pursue the licensing side on the international front. Not only does it build brand awareness for our various labels, it also has a very positive impact on both our cash flow and bottom line. The licensees fund the inventory and sales/marketing efforts, and any additional cost to support them beyond what we already spend on our domestic efforts is relatively insignificant." Added MacGregor, "We are very excited to have Revo as our UK licensee for our Hot Tuna brand. Revo has received tremendous interest from UK retailers as they seek 'old school' surf brands such as Hot Tuna and there is evidence that the demand for extreme sports apparel, including surf-related clothing, is growing worldwide." Gregory McCarry, Managing Director at Revo said, "We are extremely pleased to finalize this agreement with Aussie Apparel and we look forward to working with them in growing the Hot Tuna brand within the UK. The UK and European markets are constantly developing in respect to the global surf market and brands such as Hot Tuna enjoy tremendous brand awareness and support." Terms of the license agreement with Revo state that it is for a minimum of ten years, with an option to extend for an additional ten years. Both parties have agreed to minimum sales and royalties for the first five years. According to the agreement, minimum royalty payments to Aussie Apparel over the next five years will total US$846,500. About Revo (UK) Ltd. Revo (UK) Ltd. was established in 1993 to work with Australian surf brands as a licensee and distributor. The company is based in the UK's Southwest region and today offers a total in-house package in respect to brand management from design, production, marketing, sales and distribution. In more recent times, Revo has adopted a multi-brand philosophy that Revo considers crucial to its growth over the next five years. With the inclusion of the Hot Tuna brand into the Revo portfolio, the company anticipates solid growth over the next five years. For further information please contact: Revo (UK) Ltd. c/o Emma Hartley at (44) 1872 552525 or fax to (44) 1872 553476 or e-mail to emma@revouk.com or sales@revouk.com About Aussie Apparel Group, Ltd. Aussie Apparel Group is an emerging growth apparel company focused on the rapidly growing extreme sports apparel market. Aussie Apparel uses a multi-branded and multi-distribution approach to market and distribute its own four brands: Hot Tuna, focused on the surfing enthusiast; Xisle, targets the surfer and skater; and Piranha piranha: see characin. piranha or caribe Any of several species of deep-bodied, carnivorous fishes in the genus Serrasalmus (family Characidae), abundant in rivers of eastern and central South America and noted for voracity. Boy and Piranha Girl, its children's surfing line. For more information, visit: www.aussieapparelgroup.com or www.otcfn.com/aapg . SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. This release is intended as a forward-looking statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The risks and uncertainties that may affect the operations, performance, development and results of the Company's business include but are not limited to; fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports. Actual results may vary materially from projected results. |
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