ANN ARBOR, Mich., June 28, 2004 (PRIMEZONE) -- Legend Studios, Inc., a subsidiary of Legend Mobile, Inc. (OTCBB:LGMB), today announced that it has entered into a definitive agreement to immediately begin operating the radio stations owned by Quorum Radio Partners, Inc. and Quorum Radio Partners of Virginia, Inc. Under the terms of the agreement, Legend Studios, Inc. will operate for a 12-month term seven stations located in Virginia, West Virginia and Missouri. Legend will begin to recognize all of the revenue of the stations, which management projects will be $1,500,000 for the current calendar year.
In March 2004, Legend and Quorum entered into a letter of intent providing for acquisition of the stations by Legend Studios. Legend Studios has commenced operating KELE-AM 1360, KELE-FM 92.5 and KOZX-FM 98.1 in Mountain Grover, Missouri, WIQO-FM 100.9, WKEY-AM 1340 and WSLW-AM 1320 in White Sulfur Springs, West Virginia, and WKCT FM 103.1 in Covington, Virginia. Legend expects that the parties will shortly enter into a definitive purchase agreement and will close the acquisition during the term of the operating agreement. The acquisition is not expected to be dilutive to Legend Mobile shareholders.
"We are very excited to complete this agreement and begin operating these broadcast properties. A local marketing agreement is generally the first step to concluding an acquisition in the radio industry. With this agreement, we are confident we have an outstanding foundation to operate and to acquire additional broadcast properties," said Peter Klamka, President of Legend Studios, Inc.
In addition to recognizing the revenue from the stations, Legend Studios, Inc. is now able to use the stations to promote products such as Racemobile.com from both Legend Mobile, Inc. and debit cards from another of its subsidiaries, Legend Credit, Inc.
Forward Looking Statements
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The acquisition agreement would be subject to closing conditions standard for transactions of this type, so it is possible that the acquisition would not close. The company cautions that these forward looking statements are further qualified by other factors including, but not limited to those, set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.