LOS ANGELES, July 6, 2004 (PRIMEZONE) -- Innovation Holdings, Inc. (OTCBB:IVHO) announced today that it has signed a preliminary letter of intent to acquire a 49% equity interest in Ironwood Furnishings, Inc., a Nevada corporation. At present, Ironwood Furnishings is a distribution center of furniture with a complementary collection of hand manufactured Spanish Colonial pine furniture, classic Russian Cedar garden and outdoor furniture, and selected traditional and colonial teak, pine and mahogany, and woven furniture from Indonesia.
In anticipation of this acquisition, Ironwood Furnishings has entered into strategic manufacturing alliances with experienced, well-established furniture manufacturing companies with successful track records who manufacture their own unique product lines. Ironwood Furnishings is on a fast track national expansion program that includes opening new retail boutique oriented stores to complement the revenues being derived from its pre-existing wholesale furniture business. These national retail stores will also act as distribution centers for smaller regional retail stores on a cost effective basis.
Christopher Kurstin, President of Ironwood Furnishings, states, "Favorable demographics and a continued strong housing market in the West indicate an increase in the demand of furniture for the next several years. We believe that Ironwood Furnishings is ideally positioned to address this demand, which should result in an increase in sales going forward. Innovation Holdings will play a strategic position in the marketing of our unique products in our growing chain of stores and distribution centers in the foreseeable future."
Robert Blagman, Chief Executive Officer of Innovation Holdings, said, "Our diversifying company is beginning to rapidly expand our business lines by acquiring a variety of new and innovative businesses to assist in the growth and future potential of the company driving up both our top and bottom line projected financial results and is rapidly deploying its Cross Gel technology earlier announced by the company to create a new founded synergy in this unique and niche oriented furniture and service industry."
Ironwood Furnishings is currently finalizing negotiations to operate a 20,000 square foot retail store in Cathedral City, California, and expects to have another retail and regional distribution center open no later than August 2004. They have identified several locations in California, Nevada and Arizona, and plan to have 3 superstores open by mid-2005.
In conjunction with the provisions of the Safe Harbor section of the Private Securities Litigation Reform Act of 1995, this news release contains certain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or other variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only and involve substantial risks and uncertainties. There can be no assurance that actual results will not differ materially from expectations.