FALLS CHURCH, Va., May 12, 2004 (PRIMEZONE) -- Syndication Net.com, Inc. (OTCBB:SYCI) announced today that it has provided loan capital to HCX Tri-State to allow the Franchise Chain to purchase its 2nd hair salon franchise in the territory of Maryland and the District of Columbia. The Unit is ready for public service and the tentative scheduled opening is May 31st 2004. This is the 2nd Unit of the 24 Unit roll out planned for the next 3 years. It is the intent of HCX Tri-State to purchase and develop 24 HCX Units over the next 3 years at a pace of 6 over the next 12 months and 8, and 10 additional units per year respectively over years 2 and 3. On November 7th, 2003 Syndication entered into a Letter of Intent with Tri State Metro Territories, LLC ("Tri-State") pursuant to which Syndication would acquire substantially all of the assets of Tri State. Since that date Syndication has bought approximately 11 1/2 of HCX Tri-State and has continued to provide additional capital to foster the company's growth. Tri State is in the business of selling franchised hair coloring salon units under the name of "HCX the haircolorxperts". HCX Tri-State is a company that owns the exclusive franchise rights to the territory of Maryland and the District of Columbia to develop HCX Beauty Salons, a growing national chain of upper scale beauty salons specializing in hair color. Visit the web site at "hcx.com" for more.
As of March 31st 2004 "HCX the haircolorxperts" reported that it has sold 226 franchises in 31 territories representing 24 states under development requiring a development commitment of over 2,738 salons over the next 7 years, and currently has 44 franchises opened and operating nationwide.
Terms of the offering have not been defined and the transaction is subject to customary closing conditions, including but not limited to valuations, consents, approvals and audits. There can be no assurance as to whether or when this transaction will close.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.