Business Services Industry

Adsouth Partners, Inc. Provides Business Update and First Quarter 2006 Revenue Guidance

Business Wire, Feb 9, 2006

BOCA RATON, Fla. -- Full-Year 2005 Revenue Exceeds Guidance of $12 Million; First Quarter 2006 Revenue Will Exceed $5.5 Million; Adsouth Launches New Subsidiary - Genco Power Solutions

Adsouth Partners, Inc. (OTCBB:ASPR), Chief Executive Officer, John Cammarano today provided a business update and revenue guidance for the first quarter 2006.

Since mid 2005, Adsouth has made meaningful progress and our efforts to refocus the Company are delivering tangible results. Not only did we deliver significant year over year revenue growth in both our advertising and product businesses, but we were able to build scale and reduce the risk or dependencies on any single product or client. Revenue for full-year 2005 will exceeded our previously provided guidance of $12 million, compared to revenue of approximately $3.25 million for full-year 2004. We will report our fourth quarter and full-year 2005 financial results on March 20, 2006.

As we begin 2006, we are encouraged by our new product introductions, recent new customers business wins and our commitment to maintaining our financial discipline. But we continue to be focused on being a more performance driven, profit driven and efficient organization in all areas of our business - creative, product development, financial and operational. We have transitioned the company from a solid story with a proven business model to a business that continues to demonstrate growth from year to year, as well as profitability.

Adsouth has been very active over the last eight months in developing, pursuing and finalizing numerous new product introductions and business-building opportunities that we believe will set the foundation for 2006. Recently, we finalized and are executing some key product and business introductions and advertising campaigns that have positioned Adsouth well for future growth.

Adsouth Launches New Subsidiary

Recently, Adsouth formed a new majority-owned subsidiary to enable Adsouth to enter its first consumer durable product category, power generation systems. Adsouth will market, sell, install and service integrated power generator systems to residential homeowners and commercial business throughout Florida. We are very excited about this opportunity because it continues to diversify our product portfolio and leverages Adsouth's direct response advertising, creative marketing and productions capabilities.

According to the agreement, Adsouth will own 66% of the new subsidiary and it will operate under the name Genco Power Solutions (Genco). Genco is currently operating with an experienced team of two vice presidents, a general manager, 12 sales professionals, as well as a staff of customer service representatives. The new subsidiary, Genco, has entered into a non-exclusive distribution agreement with Wisconsin based Guardian, who will provide the generators.

In just over 10 days of radio advertising Genco has generated more than 1,000 leads and has booked 12 orders which will begin shipping in May 2006. We project an average order of $18,500.00 per install with commercial installations already coming on line. We believe by integrating Adsouth's direct to consumer and direct response advertising expertise, with the new team's experience in engineering, permitting and installation of power generator systems, the Company can quickly expand this business by meeting the rapidly growing demand for power generator systems particularly in regions associated with hurricanes and other severe weather conditions that result in power outages in Florida.

Advertising Developments

As of today, we are working with several clients on various campaigns with the goal of building brand awareness and converting that awareness into acceptance for our client's products or product line.

After our initial campaign launch in the summer of 2005, our work with Stacker 2 continues very strong in the first quarter 2006. We just completed new spots for Stacker 2 products and have launched them nationally. We use this account as a benchmark for demonstrational purposes describing how our advertising sector operates. We provide services over and above traditional advertising firms by analyzing drug and mass retail sell through data, as well as Wal-Mart retail link data, to track product sell through. In addition, we build back-end revenue streams that derive directly from advertising expenditures, as well as consulting with our clients on how to reach more consumers through a direct-response marketing platform. Our marketing strategy is to enable our clients to use direct-response marketing to effectively reduce their overall advertising expenditure while reaching more consumers.

We continue to capitalize on the many synergies that are maintained between our advertising and products sector. On several occasions Adsouth will cooperate with a client on an even deeper level. Many companies that have a product or products and originally come to us as an advertising consulting deal will be funneled to our products division. These companies may not have the ability to penetrate the market due to capital restraints, infrastructure issues, and/or lack of expertise. However, if the product meets the criteria that we have established in order to build a direct response and retail campaign, we may obtain marketing rights for the product. Specific products that have been presented and rolled-out under this model have been Simon Solutions (Pam Anderson Lip Solution), E70 and StarMaker Products (Pearl). We are currently negotiating four new products under this model, although we cannot give assurances that we will be able to obtain the rights to these products.


 

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