MODAMI SERVICES ANNOUNCEMENT
MODAMI SERVICES ANNOUNCEMENT BOCA RATON, Fla., Oct. 28 /PRNewswire/ -- Modami Services, Inc.
(NASDAQ: MDMI) announced today that an agreement in principal has been reached to a joint venture to create a newly formed corporation 95 percent owned by Modami Services, Inc., and 5 percent owned by TSR Inc., and Muhammad Ali.
The corporation, PRIMO-MSI, Inc., will initially market a fortified powered milk product, from its existing manufacturing facility, into the Middle East and African markets. Soon after launching this product, the company will follow up with several other product introductions, including a fortified yogurt, fortified yogurt shake, yogurt confectioneries and other various food products. All of these products will be marketed under the PRIMO brand name. The PRIMO brand was originally made popular by Ali nearly three years ago when it was first marketed in to the United Arab Emirates. Ali's extreme popularity in these countries gained the PRIMO brand instant recognition and within initial tests gained in excess of 18 percent of market share. Modami Services, Inc., expects to approach $25 million in gross sales from the PRIMO line in its first year of marketing. The company expects to bring nearly $2 million to the bottom line in net profits from PRIMO, adding approximately $0.67 in per share projected earnings. Chairman, Dr. Michael Salit, who worked with President Paul Kravitz, in reaching this agreement said, "this unprecedented opportunity for Modami Services to enter these new markets will allow us to grow at a much faster rate than originally planned." Quoting Kravitz, "The added public relations that Muhammad Ali's association will bring to our company will be incalculable to the overall business strategy." Modami Services, Inc., trades on the NASDAQ under the symbol MDMI. -0- 10/28/92 /CONTACT: Paul Kravitz of Modami Services, 407-995-0605/ (MDMI) CO: Modami Services, Inc. ST: Florida IN: FOD SU: JVN
AL -- MN017 -- 5985 10/28/92 12:19 EST
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|Date:||Oct 28, 1992|
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