FROM: ObjectSoft Corporation
Contact: Rubenstein Associates
FOR IMMEDIATE RELEASE
ObjectSoft Increases FastTake® e-Port Installations 300%; Signs Multi-Year Agreement For Advertising Representation; Secured Additional Equity Financing
--New FastTake® Kiosks to be Manufactured by IBM--
--Dell to Provide Computers and Electronics--HACKENSACK, N.J., Jan. 4, 2000 -- ObjectSoft Corporation (Nasdaq: OSFT) announced today that it will increase the number of revenue-producing FastTake® video e-ports (kiosks) that it has installed from 100 to 430 by the end of first quarter, 2000, and signed a multi-year agreement for advertising representation with a leading firm. Revenue from this source as well as ongoing advertising and sponsorship revenue is expected to push revenue to more than $12,000 per kiosk on an annualized basis, beginning with the second quarter of calendar year 2000. By the end of the first quarter, all e-ports are expected to be connected to the Internet full-time. Further details on the advertising representation are expected to be announced in late- February.
"ObjectSoft expected that we would get to 300 e-ports by year's end," said David E. Y. Sarna, Chairman and co-CEO of ObjectSoft. "I am delighted that we have exceeded that target for the in-store interactive video kiosks. Equally important, the advertising representation gives us a steady revenue stream that provides shareholders with a very attractive return on our investment in e-ports. Today is a major turning point for ObjectSoft, and I foresee not only increased revenues, but also rapid growth in the year 2000. Our 'clicks and mortar' strategy is clearly working."
IBM Corporation (NYSE:IBM) was awarded the contract for supplying, installing and maintaining the kiosks, which are built from ObjectSoft's proprietary and patent-pending designs. The initial phase of the contract is valued at over $2 million.
"IBM is delighted to have been awarded this important contract," said Cortland E. Johnson, Kiosk Engagement Manager for IBM Global Services. "FastTake® is a product that has proven itself in over 100 locations in 25 states, and IBM is proud to have been a part of FastTake's roll-out from the beginning." IBM announced that it had awarded a subcontract for manufacturing the FastTake® housing to AG Industries, Inc., a subsidiary of American Greetings (NYSE:AM).
AGI is a leader in volume manufacturing of display fixtures," noted Morry Weiss, Chairman and Chief Executive Officer of American Greetings. "This is an important contract and we look forward to a greatly increased orders in the future."
ObjectSoft indicated that the processors and related electronics used in the FastTake® e-ports are supplied by Dell Computer Corporation (NYSE:DELL).
"ObjectSoft worked with Dell, Dellware® and DellPlus to develop a comprehensive solution that allows ObjectSoft's specialized electronics and proprietary software to be pre-installed on our computers using our famous made-to-order facilities, providing rapid deployment, substantial savings and increased reliability to ObjectSoft," said David Clifton, Dell's Director of Small Business Marketing Communications.
FastTake® e-ports are built using ObjectSoft's patent-pending software which is based on Microsoft's (NASDAQ:MSFT) award-winning Internet- and e-commerce platforms.
"We have worked closely with ObjectSoft for several years, and we are delighted that ObjectSoft has achieved this milestone," said Tod Nielsen, Microsoft's Vice President of Developer Relations. "FastTake® is an innovative and fun-to-use product that is an example of what can be achieved with imagination, skill and Microsoft platforms and development tools."
FastTake® is an in-store interactive e-port (kiosk) that suggests premiere titles to consumers from various participating studios. It allows users to quickly find and locate a video or movies in theaters by name, genre, actor, director or rating and to find games by title, game format and category. Using an attractive touch-screen, consumers can view more than 600movie trailers, reviews and search up to 9,000 titles. The FastTake® video kiosk is installed throughout the country with kiosks in the top 4 rental chains in 25 states, and in 14 of the top 25 Nielsen Demographic Marketing Areas (DMAs).
In other developments, ObjectSoft announced that all previously outstanding preferred stock has been converted to common. The public float is about 4 million shares.
Additionally, Hudson Venture Associates, LLC has led a group of institutional investors that have made a $2 million equity investment in ObjectSoft and have acquired Series G Convertible Preferred Stock and warrants of the Company. The resale of the common stock is restricted, subject to registration with the Securities and Exchange Commission and limited conversion lockup and gating restrictions. Hudson Venture Associates also led the Company's prior round of financing.
The financing was arranged in part in response to the demand for the Company's FastTake® product. "This financing strengthens ObjectSoft financially, and is expected to provide us with the necessary resources to continue to execute our business plan," said Sarna.
Founded in 1990, ObjectSoft Corporation provides information and servicesthrough public access kiosks. The Company's products, FastTake® and SmartSign kiosks enable retailers to implement a comprehensive "clicks and mortar" strategy. There are currently 100 FastTake® units installed and operational in the US. The company plans to install 1,000 units in 2000. ObjectSoft is a publicly held company listed on Nasdaq. For more information on ObjectSoft, visit its website at http://www.objectsoftcorp.com.
This press release contains certain forward-looking statements concerning ObjectSoft Corporation, which are subject to a number of known and unknown risks that could cause actual results, performance and achievements to differ materially from those described or implied in the forward-looking statements. Among such risks are those discussed in the Company's Registration Statements on Form SB-2 and Form S-3, its Quarterly Reports on Form 10- QSB and its Annual Reports on Form 10-KSB on file with the SEC and other filings made with the SEC from time to time.# # #
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