RENO, Nev., Jan. 19, 2005 (PRIMEZONE) -- Meg Athletic Corp. (Pink Sheets:MEGJ) is pleased to announce the carrying forward of a distribution deal originally initiated and completed late last year with a prominent distribution firm in Denmark: TET A/S.
TET A/S has grown significantly in the last seven years and has become a prominent distributor of high-end fashion and Italian clothing in Europe, as well as the U.S. and Canada. Seeking to enter the casual, sports apparel marketplace, TET A/S has found a unique fit with Meg and the soccer-centric apparel line -- more importantly the agreement originally piqued with the signing of MLS superstar Dwayne De Rosario. TET A/S has been patient in finding the right company to work with and feels that the management is in place to carry through with this agreement.
"We are lucky to be getting this opportunity with TET A/S. We started this deal late last year and were elated to hear that they were just as eager for us to begin working with them as we were for them to begin working with us," stated Mr. Panesar, President of Meg Athletic Corporation. "The designs that we have shown them now have far surpassed what they originally intended and they are anxious to begin promoting our product."
The agreement with TET A/S is also a 3-month developmental contract for the Fall and Winter collection for Meg Athletic, commencing in March of 2005. Within the details of this agreement, TET A/S has assured US$200,000 worth of orders spanning the three-month agreement, which approximately results in $65,000 a month in orders. Upon the conclusion of the 3-month period both Meg and TET A/S will have the right to renegotiate the terms of the agreement.
Mr. Panesar further stated: "The plan intends to stay the same, with TET A/S being able to profile a few major soccer stars that we have endorsement contracts with. We are anxious to release these names to the public, however we are equally anxious to don them with Meg apparel and allow TET to utilize them to the fullest extent of the Meg marketing campaign. At this point excitement would be understatement to describe how we at feel about TET A/S."
Forward Looking Statements
The management of the company, who take full responsibility for its content, prepared this press release. Statements in this news release concerning the company's business outlook or future economic performance, anticipated profitability, revenues, expenses, or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties and factors include, but are not limited to, future capital needs, changes and delays in product development plans and schedules, customer acceptance of new products, changes in pricing or other actions by competitors, and general economic conditions.