K-tel International Inc. Acquires Significant Media Assets of Regal Shop International Ltd.; Deal Positions K-tel as the Major Direct Marketing Force in Western Europe.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--March 10, 1998--K-tel International Inc. (Nasdaq:KTEL) Tuesday announced the extensive expansion of its European operations with the acquisition of significant media assets of the United Kingdom-based direct response marketing firm Regal Shop International Ltd. The announcement was made today by David Weiner, president of K-tel. Under terms of the agreement, K-tel's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. K-tel Marketing (UK) Ltd. has acquired Regal Shop's long-term broadcast contracts on RTL (Register Transfer Level) A high-level hardware description language (HDL) for defining digital circuits. The circuits are described as a collection of registers, Boolean equations, control logic such as "if-then-else" statements as well as complex event sequences; 9 in France and VT4 in Belgium. The acquisition solidly positions K-tel as one of the leaders in the direct-response marketing arena in western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). . The newly acquired media contracts will enable the company to now market products to consumers throughout France, Belgium, Germany, Luxembourg, Austria and Switzerland, in addition to Germany, the United Kingdom, Finland and Scandinavia, where K-tel has already established a robust presence in the region with its substantial direct-marketing activities. Regal Shop's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. historical revenue from these media contracts is in excess of $15 million. "This acquisition catapults K-tel into the upper echelons of direct-response marketing in western Europe, where we are aggressively expanding our presence. Regal Shop enjoyed a substantial marketshare of direct-response advertising time on RTL9 and VT4. These new contracts, combined with our existing operations in Germany, the United Kingdom, Finland and Scandinavia, make K-tel one of the most formidable direct-response marketers on the continent," stated Weiner. K-tel Marketing GmbH (formerly Dominion dominion, power to rule, or that which is subject to rule. Before 1949 the term was used officially to describe the self-governing countries of the Commonwealth of Nations—e.g., Canada, Australia, or India. Vertriebs GmbH), K-tel's newly renamed subsidiary in Germany, is a leading figure in the country's direct-marketing field. The operation produces German-language short and longform advertising for television, and owns contracts for approximately 42 percent of all longform direct- response advertising time on German terrestrial television Terrestrial television is a term which refers to modes of television broadcasting which do not involve satellite transmission. [1]. The term is uncommon in the United States, and more common in Europe. stations. In the United Kingdom, K-tel's music master catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. is a major source of revenues for the organization, which aggressively produces and markets popularly priced CD-compilation albums for distribution in the country and abroad. K-tel's United Kingdom operation also licenses out many titles housed in its expansive music catalog to record labels. K-tel's marketing activities in Finland and Scandinavia are quite extensive, as well. The company is the second-largest record label in Finland, where it represents a number of the most popular Finnish music acts and is a leader in the production, marketing and distribution of compilation dance music albums throughout the market. K-tel International is a vertically integrated developer, marketer and distributor of a wide array of entertainment and consumer products worldwide. The company markets its product lines to retailers, wholesalers, licensees or directly to the consumer through its global direct-response operations. K-tel has companies/operations in the United Stations, the United Kingdom, Germany and Finland. CONTACT: K-tel International Inc., Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Corey Fischer, 818/223-4251 Coffin Communications, Los Angeles Sanjay Sabnani, 818/789-0100 The Lippin Group/LA, Los Angeles Les Eisner, 213/965-1990 |
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