NEW YORK -- July 12, 2004 -- Niche Media Ventures, Inc. (Pink Sheets:NTVI) today announced a joint venture to sell its proprietary suite of Web and telephony business services through United Information Exchange, Inc., a Boston-based multi-level marketing and infomercial company. The agreement gives NMV access to the tens of thousands of independent marketers affiliated with UIX's Ideal Health division (www.idealhealth.com) as well as to over 80 million viewers of UIX infomercials.
Under the agreement, NMV will provide UIX with an integrated package of business services ranging from easy Web site building, e-commerce and content management tools to Web hosting, email management, instant messaging, discussion boards, polling, streaming media, and telephony services. UIX expects to sell the package on a subscription basis at a monthly cost of under $50 per user.
Initially, UIX will promote the package as the recommended automation solution for the substantial base of distributors who sell customized vitamins through Ideal Health's multi-level marketing business. NMV's technology will equip Ideal Health representatives with a complete system of Web and telephony services making it possible to sell their products online, do email marketing to their customer base, conduct call broadcasting sessions to quickly connect with their downline, and gain other efficiencies at very low cost.
In addition, UIX plans to create a private-labeled version of NMV's online business suite that will be sold through UIX's highly successful infomercial division as well as through a standalone multi-level marketing business designed specifically to promote the new product. This portion of the venture will leverage UIX's expertise in building and managing multi-level marketing companies.
NMV and UIX will split all profits equally, with NMV maintaining sole control over the technology. NMV projects a minimum of 250,000 subscribers within 24 months, based on UIX's marketing and infomercial strength. This would generate monthly recurring revenue of $12,500,000.
"This alliance represents a potentially significant new revenue stream for our company," said David Shapiro, CEO of Niche Media Ventures. "UIX provides us with the marketing muscle to create a substantial user base quickly without incurring the cost of a traditional advertising campaign. This fits into our business model of bringing services directly to existing niche and user communities with a built-in audience in order to accelerate market penetration and maximize profit opportunities."
NMV's online business services package will be available to Ideal Health distributors in June. Infomericals for the private-labeled UIX product are expected to begin in August.
About Niche Media Ventures, Inc.
NMV provides an important link between technology, entertainment and the capital markets for the New Media marketplace. Its broad-based distribution, proprietary Web technology, and relationships within both the music and film industries offer a platform for providing recurring revenues capable of supporting development of multiple niche projects. The Company focuses on developing projects for the fast-growing home theater market, leveraging its infrastructure to develop entertainment projects at a fraction of their traditional cost, and forming relationships with niche media companies which can provide ongoing marketing opportunities and a passionate fan-base for NMV's products and services. For more information, visit http://www.nmventures.com/
