This was just sent to me by Sam as well. Dont know about the...

This was just sent to me by Sam as well. Dont know about the last paragraph though lol. Apart from that it reads quite well.


Sydney, November 15th, 2004 – Australian listed entity Entertainment Media and Telecoms Corporation (ASX: ETC) continues to carve out an impressive niche in the Digital On Demand market, announcing in quick succession two major acquisitions anticipated to turn the company’s fortunes around.
EMT, which specialises in the provision of integrated Digital-Video-on-Demand (DVoD) and High Speed Internet Access (broadband) for Hotel and Resort environments, has successfully acquired the Hospitality Entertainment business of Verizon Select Services Inc., a wholly owned subsidiary of telecommunications giant, Verizon Communications (NYSE: VZ).

The latest acquisition is part of an aggressive strategy underway to secure a global footprint for EMT. Expected to build positively upon the recently announced acquisition of Canadian company GalaVu Entertainment, the USD$1.5m deal with Verizon contributes a net positive cash flow to EMT in excess of USD$80,000 per month from several contracted hotel sites.

A keen eye for strategically priced acquisitions also resulted in the GalaVu business being acquired for a fraction of the commercial value of the company. Contributing some CAD$5.2m to per annum to EMT, the acquisition of GalaVu also provides a proprietary technology with a price point significantly lower than that of the currently distributed system.
EMT entered the market in 2000 as a fledgling player in the On Demand services environment, offering an integrated digital solution to a sector traditionally dominated by analogue systems.

As one of only three companies globally with rights to distribute the breakthrough “Intrigue®” system developed by North American industry heavyweight, General Dynamics (NYSE:GD), an early contract secured with Amalgamated Holdings Limited to supply Intrigue® to the local Rydges Hotels chain created optimistic predictions for the company’s future, and the share price reflected the buoyant mood.
Shortly after commencing the roll out of the Rydges contract and expending millions to supply the capital equipment required, profit forecasts for EMT took a hammering when business and leisure travel around the world plummeted following the events of September 11. The SARS epidemic further exacerbated a considerable blow to the fortunes of the young company.
With countless companies around the world forced to the walls by uncontrollable events, it was little surprise when the shares tumbled below 2c given the proximity of EMT’s core business to the travel and hospitality market.
Ripples from the political climate created waves crashed significant entities. While Ansett was in collapse, EMT fought tenaciously to stay in the game. With no exposure to international sites, and the power of General Dynamics behind them, the risk factor in maintaining the course was reduced, and the potential to make good on a growth strategy was solid.
EMT teamed with a progressive financier in Rentworks Ltd to ensure the Rydges roll out in Australia would continue. The Board predicted the recovery of global travel and hospitality industry within a 24-36 month period, and began researching where opportunities may arise in North America to gain entry to that lucrative market in time for the upswing.
The predictions have proven accurate and the strategy viable. Commitment to the relationship with Rydges continues, and a successful acquisition plan means the company now holds contracts to supply 4-5 star Hotels and Resorts in North America, Europe, South Africa, Australia and New Zealand, Singapore and the UK. Moreover, a steady market trend toward digital standards in the Hospitality industry globally now positions EMT on a wave of change likely to see analogue systems all but disappear from the landscape within the next 2-3 years.
Further compounding recent good fortunes for EMT, the liquidators of WorldxChange have dispersed $562,000 owed to the company by the failed entity. Previously written off the balance sheet, the injection of funds represented by this payment is timely for a company driving a presence through international markets.

The GalaVu and Verizon acquisitions also combine to produce a fat sales pipeline for EMT, with several sites in North America, New Zealand and Asia already in negotiation. Verizon Select Services held a strategically valuable Master Services Agreement to supply to a leading 5-star Hotel group, and the transition of this to EMT is likely to capture the interest of shareholders.

Following the transition of all contractual rights from Verizon Select Services to EMT, 5-star properties in the EMT portfolio will outnumber 3-4 star properties, securing the company a market footprint encompassing some 30,000 rooms across Australia, Singapore, North America and Europe.

The share price for EMT has started to reflect a renewed confidence in the business, recently breaking through a price barrier predicted by The Sun-Herald as likely to be a critical turning point for the future fortunes of the EMT group; auguring well for improved revenue returns and a profitable third year of trading. (Sun-Herald: October 31st, 2004: Page 20 – Chartist).