LOS ANGELES, June 19, 2003 (PRIMEZONE) -- Aussie Apparel Group Ltd. (OTCBB:AASI), an emerging growth apparel company focused on the extreme sports enthusiast, announced today that it signed a letter-of-intent with Newport Beach, California-based GBI to acquire the Bluetorch trademark and other intellectual property. Terms of the potential agreement were not disclosed.
The potential agreement would give Aussie Apparel the right to utilize the Bluetorch name in all categories with the exception of Bluetorch TV whose rights are owned by Fox Sports Net.
Bruce MacGregor, President and CEO of Aussie Apparel said, "As we have previously stated, we continue to look for acquisition candidates that will contribute to our revenue goal of $280 million over the next five years. The Bluetorch letter-of-intent is consistent with this objective."
MacGregor added, "The Bluetorch brand epitomizes what extreme sports is all about. Fox has created an incredible following for the Bluetorch name through its Bluetorch TV offerings. Given the history of Bluetorch, there is a heritage that covers all of the extreme sport categories. The revenue potential for Bluetorch in both apparel and licensing is immense, both domestically and internationally, making the brand an extremely valuable addition to our existing portfolio of brands."
Both parties to the agreement anticipate a definitive agreement within four weeks.
About Aussie Apparel Group, Ltd.
Aussie Apparel Group is an emerging growth apparel company focused on the rapidly growing extreme-sports apparel market, both domestically and internationally, utilizing a multi-branded and multi-distribution channel approach. According to Sporting Goods Intelligence, the US sports apparel market was an estimated $19.08 billion at wholesale in 2002. The Company currently owns four brands, including Hot Tuna, which is focused on the surfing enthusiast, Xisle, a mid-tier label that targets both the surf and skate market, and Piranha Boy and Piranha Girl, directed at the children's market with surf inspired apparel for the mass-market. For more information visit: http://www.aussieapparelgroup.com/
Safe Harbor:
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.