SportsLine USA, Inc. Acquires Golf Club Trader, Inc.
FORT LAUDERDALE, FL (June 3, 1999)-SportsLine USA, Inc. (NASDAQ:SPLN), the leading global Internet sports media company, announced today that as of May 31, 1999, it has completed the acquisition of Golf Club Trader, Inc. a privately-held Internet retailer specializing in the buying, selling and trading of used, pro-line golf equipment through its online service (www.golfclubtrader.com).
SportsLine acquired Golf Club Trader, Inc. in exchange for $7 million of SportsLine USA common stock (approximately 200,000 shares). The acquisition will be accounted for under the "pooling-of-interests" method. Golf Club Trader will be integrated into SportsLine's wholly-owned subsidiary, International Golf Outlet (IGO), creating a comprehensive online golf marketplace where users can buy, sell or trade new and used golf equipment.
Golf consumers visiting SportsLine's e-commerce areas at IGO and The Sports Store (www.thesportsstore.com) will now be able to purchase new high-end, name brand golf clubs and receive a 30-day buy-back guarantee, in the form of a store credit for approximately 80-90% of the original transaction value of returned golf equipment. Additionally, consumers can receive credit for certain used club trade-ins toward the purchase of new golf clubs in IGO and The Sports Store, or Golf Club Trader will purchase certain used clubs for cash. Golf Club Trader enables SportsLine to offer used and returned clubs for purchase, sale or trade to a secondary golf club market. Golf Club Trader also acquires, at market prices it establishes, used clubs for resale from leading golf retailers and more than 1,500 golf pro shops around the country.
Since SportsLine acquired IGO a year ago, SportsLine's golf revenues have increased more than 400% due in large part to the promotional and distribution synergies between IGO and SportsLine's golf content area, GolfWeb. Later this month, SportsLine will begin co-producing PGATOUR.COM creating additional opportunities for cross-promotion to golf enthusiasts, and new e-commerce initiatives through the PGA TOUR shop.
"The addition of Golf Club Trader to the SportsLine family provides our e-commerce business with a compelling differentiation over other online golf retailers by allowing us to offer a buy-back guarantee on select name brand golf clubs," said Michael Levy, president and CEO of SportsLine USA. "With the content, commerce and community we offer through pgatour.com, GolfWeb, IGO and now Golf Club Trader, SportsLine is clearly the online leader in golf."
Chihoe Hahn, the founder and CEO of Golf Club Trader will be responsible for developing IGO's secondary club market strategy, under David Schofman, Director of Golf Merchandising. Golf Club Trader will move from Santa Clara, California to Austin, Texas, to co-locate its operations with IGO.
About SportsLine USA, Inc. SportsLine USA, Inc. (NASDAQ:SPLN) is at the leading edge of media companies, providing Internet sports content, community and e-commerce on a global basis. SportsLine USA's content includes more than 400,000 pages of multimedia sports information, entertainment and merchandise. SportsLine USA was founded in 1994 and its flagship Internet sports service (www.sportsline.com) was renamed CBS SportsLine in March of 1997 as part of an exclusive promotional and content agreement with CBS Sports. SportsLine USA produces the official league Web sites for Major League Baseball, the PGA TOUR and NFL Europe League, and serves as the primary sports content provider for America Online, Netscape and Excite.
About Golf Club Trader, Inc. Golf Club Trader, Inc. (www.golfclubtrader.com) is the premier Internet golf retailer in the secondary golf club market. Golf Club Trader offers new and used high end, pro-line golf clubs for purchase, sale or trade, utilizing a unique buy-back guarantee, under which users may return newly purchased clubs within the first 30 days of purchase in exchange for a "store credit" of approximately 80-90% of the transaction.
Note: This press release contains forward-looking statements, which involve risks and uncertainties. SportsLine USA's actual results could differ materially from those anticipated in these forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet, constantly changing technology and market acceptance of the company's products and services. Investors are also directed to consider the other risks and uncertainties discussed in SportsLine USA's Securities and Exchange Commission filings, including those discussed under the caption "Risk Factors That May Affect Future Results" in SportsLine USA's latest Annual Report on Form 10-K. SportsLine USA undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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Kathy Bradley
Communications Manager
SportsLine USA, Inc. (http://cbs.sportsline.com)
Phone 954-351-2120, ext. 7519
Fax: 954-351-9175
Pager: 800-493-7035