drpepper, page-41

re: privacy has gone mad TURKISH DELIGHT FOR LUMACOM
The Board of Lumacom Limited is pleased to announce that in conjunction with
its Turkish partner ITOAS*, Lumacom has entered into a Heads of Agreement
with established Turkish billboard advertising company Global Medya Pazarlama
San. TIC. LTD (“Global”).
Global is to take up all available advertising space on two joint venture signs
currently being erected in Taksim Square, Istanbul under a 3 year wholesale
advertising space deal grossing a minimum of US$3million for the three years.
The deal and the signs are subject to a Joint Venture agreement which entitles
each of Lumacom and ITOAS to 50% of the net income from the signs.
Lumacom Managing Director Rodd Sala said “The Turkish outdoor advertising
market is fast growing and we may have originally underestimated its potential to
the Company. Outdoor spend is high, particularly in Taksim Square where its
understood local authorities are seeking to create a “Times Square” image”.
The two (2) 180 square metre signs (12 metres long x 15 metres high) totaling
360sqm are located on top of the Marmara Hotel, one of the most prominent
buildings located in the heart of the ancient city in Taksim Square.
The essential terms of the heads of agreement are
• Global will have exclusive rights to both the day time and night time
advertising space on the sign (subject to certain local government
regulatory initiatives).
• The term of the agreement is for 3 years with an additional 2 year option.
• The fee of US$1million per annum will be adjusted annually to CPI.
• The proposed start date for the contract is 1st March 2005.
• Global also has first right of refusal to enter into a similar arrangement for
up to 2 additional signs in Istanbul.
The parties have signed a Heads of Agreement and will finalise a formal contract
incorporating more detailed terms and conditions by early February 2005. The
Agreement will become binding upon Global paying a deposit of US$50,000 on
or before 21 January 2005 (Lumacom will keep the market advised upon the
payment of the deposit and the execution of the formal agreements).
Global Medya is a well established Turkish media company with existing rights to
the Ataturk (Istanbul) and Antalya international airports in Turkey. The airports
display some 550 varying size advertising billboards. Global see an opportunity
to leverage their client base at the Airports onto signs and advertising on the
Marmara Hotel. 2005 marketing opportunities include the European Champions’
League football final (25th May 2005) and the Formula One Grand Prix (21st
August 2005). Global also have working relationships with leading International
poster specialists and outdoor companies.
The installation of the Marmara Taksim LumaPanel signs has been progressing
well with all steel-work now in place and the actual LumaPanel modules to be
erected shortly.
Separately, the outright purchase of a 54sqm sign by ITOAS for use as a
corporate branding sign for The Marmara - Pera Hotel (another hotel owned by
ITOAS parent company) has already been installed and is awaiting final
commissioning.
Mr Sala, in Turkey this month inspecting the progress on the installations, was
involved in final negotiations between the Company, Global Medya and ITOAS.
Mr Sala said, “After discussions by the JV Partners with a number of potential
agents and advertisers, Global were able to present a convincing proposal to
progress the Marmara Signs. Timing of the Turkey installation and this exciting
advertising deal is perfectly timed as it will coordinate with the launch of our New
York sign and become part of the planned world wide network of Lumacom super
sites.” He also added, “Our Turkish partners are equally satisfied by the deal with
Global as on the back of its success, is keen to JV with us on other sites not only
in Turkey but in other regions where they have business interests”.
* ITOAS is a division of KiSKA Construction Corporation (“KiSKA”). KiSKA is one
of Turkey’s largest privately owned industrial Companies with major building and
construction interests in Turkey, surrounding countries and New York; with a
network of Hotels throughout the regions. www.kiskagroup.com.
FOR FURTHER INFORMATION ABOUT LUMACOM, refer to www.lumacom.com.au.
Authorised by: Rodd Sala
Managing Director - Lumacom Limited
Ph: 61 8 9228 8577
Fax:61892288677