IN STORE MEDIA SYSTEMS RECEIVES EQUITY INSTALLMENT
FOR IMMEDIATE RELEASE
Contact:
Regency Financial
Scott Gelbard, Principal
(303) 771-7300
www.regency-financial.com
In Store Media Systems, Inc.
Don Uhl, President
(800) 835-7428
www.ismsi.net
Aurora, CO, September 4, 2001 – In Store Media Systems, Inc. (OTC BB: ISMS), announced today that it has received the second installment of $552,000 from the escrow formed January 19, 2001. The escrow was established by a $2,052,000 Common Stock Purchase Agreement between ISMS and an investment group represented by Derrick Bushman, now a member of the Company’s Board of Directors.
Concurrently, 1,519,729 shares of restricted ISMS common stock issued by ISMS into the escrow account at the closing of the stock purchase agreement were released to the investment group.
The investment group released the escrow funds prior to ISMS installing the stipulated 150 Coupon Bank™ system (CBS) units in a retail chain. In return, ISMS issued 7,600,000 options to the investment group to purchase up to 1,900,000 shares of ISMS restricted common stock at each of the following increments $0.75, $1.00, $1.25,and $1.50.
The Company can “call” the $0.75 options after installing its CBS electronic coupon clearing system in 500 or more retail locations. The other options can be called at 1,000/1,500/2,000 locations respectively. In addition, ISMS can also call all of the options when the average closing price of ISMS shares exceed $3.00 per share over any consecutive two-month period. The options will expire unless exercised at the earlier of three years or when called by the Company.
In connection with this transaction, the Company also issued options to In Store Capital, LLC (ISC) to purchase 660,000 shares of ISMS restricted stock, 165,000 at each of the same price and terms granted to the investment group. ISC has agreed to provide non-recourse equipment and receivables funding to install and operate the Company’s Coupon Bank and other systems. Derrick Bushman is President of In Store Capital, LLC, a non-affiliate of ISMS.
Donald Uhl, President/CEO of ISMS said: “We are very pleased to close the escrow and complete the stock purchase agreement. The Company is currently negotiating Coupon Bank operating agreements with three retail supermarket chains, and I believe ISMS will meet the standards required to call the options. If all options are exercised, ISMS will receive over $9 million of new equity.”
ABOUT IN STORE MEDIA SYSTEMS:
In Store Media Systems, Inc. is a public (OTC BB:ISMS) e-commerce company that will provide business-to-business Internet solutions for the $7 billion coupon industry through its two patent pending, electronic coupon clearing systems (Coupon Bank and “In$taClearing™”) and its patented, in-store, coupon distribution system (“Coupon Exchange Center™”). These proprietary systems will be developed and operated by ISMS to greatly reduce costs and substantially increase sales for coupon-issuing manufacturers and coupon-redeeming retailers.
ADDITIONAL ISMS CONTACTS:
Glen Akselrod: The Stock Page, Toronto, Ontario, Canada (416) 628-5245
James Williams: Action Stocks, Inc. Solana Beach, CA (858) 481-6670
“Safe Harbor” Statement: Certain statements in this release are “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the Company’s ability to meet the terms and conditions required to obtain its project financing, risks and delays associated with product development, risk of market acceptance of new products, risk of technology or product obsolescence, competitive risks, reliance on development partners and the need for additional capital.
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