MONTCLAIR, N.J., June 29, 2004 (PRIMEZONE) -- Headliners Entertainment Group, Inc. (OTCBB:HLNR) announced today that it has signed binding agreements to acquire a chain of dance clubs. The chain includes ten club complexes, located in Columbia SC, St. Louis MO, Miami FL, Tulsa OK, Kansas MO, Omaha NE, Jackson MS, Cincinnati OH, Tucson AZ, and Louisville KY. The agreements provide for closing of the acquisition as soon as the audits of the financial statements of the clubs are completed.
This clubs currently generate over $20,000,000 in annualized revenue, with a 15% pre-tax profit.
The clubs have to date been owned and operated by JHF Properties, LLC, which is headquartered in Dublin, Ohio. JHF Properties will continue to manage the clubs after the acquisition from its Ohio offices. JHF's two executives will remain with JHF, and will provide consulting and management services for five years.
Ed Rodriguez, Headliners Chairman, CEO, and President of the company, commented as follows: "The process was slow, and the doubters were loud, but the result is excellent. We knew from the outset of our negotiations that our two organizations belonged together, and the time was well spent finding just the right formula to maximize profit and potential while minimizing problems and expenses."
"I believe that our combined revenue for 2005 will easily reach or exceed 30 million dollars, with no reduction in the existing profitability of the clubs we are acquiring. With the addition of club complexes already in construction and with those to be added in the next year, Headliners is heading towards becoming the leader in its field."
For further information, visit www.rascalscomedyclub.com or contact Ed Rodriguez at 973-233-1233.
The information in this Press Release includes certain "forward-looking" statements within the meaning of the Safe Harbor provisions of Federal Securities Laws. Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will provide to be correct. Factors that could cause results to differ include, but are not limited to successful performances of internal plans, the impact of competitors, and general economic risks and uncertainties.