Intervisual Books Signs Definitive Agreement to Acquire Fast Forward Marketing

Business Wire, March 30, 1999

SANTA MONICA, Calif.--(BUSINESS WIRE)--March 30, 1999--

Acquisition of This Leading Video Sales Organization is Expected to Double Intervisual's Revenue, Adds an Established Sales Force, a National Account Base and Expanded e-Commerce Capability

Intervisual Books, Inc. (IBI) (NASDAQ: IVBK), the world's leading creator and producer of interactive pop-up books for children and adults, announced today that it has signed a definitive agreement to acquire privately-held Fast Forward Marketing, Inc., Marina del Rey, California, which distributes video and audio products nationwide for major motion picture studios and independent producers.

Steven Ades, Fast Forward's president who founded the company in 1987, will become president of Intervisual's New Media and Video Division, Ades says, "We are excited about offering IBI's books in addition to our established video cassettes to our customer base of more than 4,000 retailers."

Capitalizing on Internet Opportunities

Ades added, "I am pleased with the support we are receiving from our Internet customers, which include eToys.com, Amazon.com and Reel.com, and we will continue to seek maximum exposure in this dynamic medium. We are in the process of adding IBI's exciting interactive books to our e-Commerce product mix."

Ades continued, "We also plan to increase our wholesale distribution capabilities with the addition of a business-to-business Internet site utilizing our database of over 60,000 video and book titles. Our business-to-business Web system is scheduled to become operational this fall. This extra-net system will connect Fast Forward's and IBI's order processing, customer service, and product information."

Dan Reavis, IBI's executive vice president and CFO said that, "The acquisition is scheduled to be concluded by mid-April upon the receipt of a fairness opinion, conclusion of due diligence, and the finalization of financing arrangements." He added, "Fast Forward will be acquired for cash and IBI's common stock."

Norm Sheinman, IBI's president and COO added, "Based on the average of Fast Forward's and IBI's sales during the past three years, we anticipate the combined company will generate approximately $30 million in sales during the first 12 months after the transaction is completed. We also expect the acquisition of Fast Forward to significantly reduce IBI's selling and distribution costs once the integration of the two companies is complete."

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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors, including, among other things, the size and timing of customer orders, changes in laws, new or increased competition, delays in new products, production problems, changes in market demand, market acceptance of new products, seasonality in product purchases, changes in foreign exchange rates and others. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward- looking statements. Additional information with respect to these and other factors which could materially affect the Company and its operations are included in the Company's filings with the Securities and Exchange Commission and are incorporated herein.