Solutions Media Acquires EAT'M Conference; Solutions Media, Inc. Announces the Acquisition of Emerging Artists & Talent in Music

Business Wire, Oct 21, 1999

SAN DIEGO--(ENTERTAINMENT WIRE)--Oct. 21, 1999--

Wayne Irving, President and Chief Executive Officer of Solutions Media, Inc., announced the acquisition of Emerging Artists & Talent in Music (EAT'M) in a uniquely structured deal.

The purchase represents a multi-million dollar cash and stock transaction valued at $13.60 per share of Solutions Media stock. The privately held San Diego-based Internet technology and convergence company used private stock for the bulk of the purchase of the prestigious annual music industry conference, showcase and festival, which takes place in Las Vegas.

The valuation given Solutions Media by the highly respected entertainment heavyweights who are shareholders in EAT'M reflects their belief in the power that the Internet holds in the future of the music business. This transaction is only indicative of the powerhouses that Internet companies have become. Never before in history has using private stock as currency been so prevalent and valuable.

The acquisition is one of many in a determined effort to increase the assets of Solutions Media and, therefore, its value. SMI is positioned to go public in 2000. EAT'M is now one of the largest music showcases and conferences in the United States, serving emerging artists, industry veterans and cutting edge technology mavens.

For three days each spring in Las Vegas, EAT'M becomes an industry networking hub of record company executives, Internet companies, producers, artists, celebrities, managers, promoters and song writers. The events have proven extremely successful with 19 signings resulting in its first two years including major record deals with Universal and Columbia and production deals with hitmaker Ross Robinson.

As a testament to the respect EAT'M has garnered, revenues increased by 40% in its second year in submissions, registrations and sponsorship. Registration grew from 700 in l998 to 1,100 in l999. Submissions for the 2000 showcases are overwhelming with record-setting early registrations.

EAT'M was founded by Lisa Tenner, who will remain at the helm of the event and its charitable arm, the non-profit Emerging Artists Fund, which benefits music programs in schools. Staff and management will remain the same with offices in Las Vegas. Sue Shifrin-Cassidy stays on board as Co-Director. Tenner and Cassidy were honored with the Governor's Award for Tourism in l998 as a result of the impact of EAT'M on the Las Vegas community.

Solutions Media, Inc., owns SpinRecords.com, SpinRadio and SpinRecords Publishing Company, Inc. SMI also has a three-year management contract with Kingdom Skateboards, a strategic marketing partnership.

Tenner said, "There is tremendous synergy in the goals of Solutions Media and EAT'M as well as in the personal visions of Wayne and myself. We both care about the musicians and hope to enhance the possibilities which traditional opportunities and technological advances make achievable. Additionally, our companies can now exploit joint marketing ventures."

"In an effort to have our finger on the pulse of the music industry and its talent," according to Irving, "We sought what we feel is the most representative music conference in the business -- and selected EAT'M. Our mutual interest in emerging talent and in growth for the next millennium is one and the same. SMI's media marketing partnerships will be helpful in expanding exposure of EAT'M on a broad national basis, while awareness of EAT'M will unquestionably impact SMI's positioning with consumers and investors."

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein that are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.