4-Sep-99

USWEB/CKS And Movietown.com Form First Ever Internet-Based Distribution Company For Home Entertainment Product Total E-Business Model Set To Transform Existing Home Entertainment Product Industry

Emerging from an equity partnership between USWEB/CKS and e-commerce entertainment retailer, Movietown.com, both companies announced today the formation of Puzzlesoft Corporation. Puzzlesoft is the first entirely Internet-based home entertainment product distribution company that combines sales, fulfillment, and customercentric marketing data for the entertainment industry. The companyís first acquisition is MS Distributing, one of the big-four home entertainment product distributors. With this purchase Puzzlesoft is positioned to effectively streamline and enhance supply-chain sales demands for both traditional and Internet retailers. Puzzlesoft integrates three key business components into an ""e-frastructure"" designed to provide home entertainment product companies with a total or parceled package for selling and distributing their video, music and software/game products. These units include: Business to Business Distribution - Building upon the 54 years of profitability realized by MS Distributing, with current annual revenues of approximately $150 million, Puzzlesoft will introduce proprietary Internet-based ordering and tracking systems in order to maximize traditional home entertainment product distribution. Retail/Direct-To-Consumer - Led by flagship e-tailer Movietown.com, Puzzlesoft will package its set of proprietary systems, content, technology, and catalog commitments for traditional and Internet retailers to create a branded chain of retail opportunities called the Internet Channel Network (ICN) Marketing Intelligence Services - This data warehouse will be the foundation of Puzzlesoftís Marketing Services capabilities and analyzed for the purchasing, distribution, and marketing of information used to enhance the future marketing and promotional activities of the products the company distributes. ""Our vision is to pioneer a new genre of e-business by providing advanced, Internet-based capabilities and services to traditional and Internet entertainment product retailers,"" states Colin Nix, President and CEO of Puzzlesoft. ""The acquisition of MS Distributing is the first in a series for strategic purchased this year which are designed to enhance and grow our business over the long term."" The Puzzlesoft business model is unique in both scope and service offerings, as the company will utilize a complete package of offerings for its own Movietowen.com Internet locations, as well as sell any or all of these capabilities to clients that will include: entertainment product producers, large-chain traditional and independent retailers, Internet retailers, and consumers. ""By infusing technology into the traditional distribution business, Puzzlesoft will create a solid infrastructure and fresh business opportunities for new and existing customers,"" continues Nix. ""Customer service is at the center of our business model. By packaging a solid infrastructure of expertise, content inventory, and fulfillment into an offering for both traditional and Internet retail channels, we will be creating a network of direct to consumers storefronts founded on an advanced analysis of consumer buying patterns and sales data."" USBWeb/CKS is a global professional services company that partners wit its clients to help them define strategies and implement innovative ways to build their business. USWeb/CKS is an expert in strategy development, Internet technology and marketing communications in the following key business areas: E-commerce systems, knowledge management, branding and advertising, business systems, strategy, Internet communications, network solutions, and customer relationship management. Based in Los Angeles, Movietown.com sells VHS and DVD movies direct to consumers via the Internet. The Web site features a large selection of movies, including classic, hit, and specialty film titles; low prices, with a variety film favorites on sale; and superior customer service that includes fast delivery. Movietown.com recently purchased entertainment product distributor MS Distributing in Hanover Park, Illinois. For more information, contact Mary Lou Hotsko at 310 473 4147 or email: Marylou_hotsko@bhimpact.com.