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Business Editors
NEW YORK--(BUSINESS WIRE)--Jan. 23, 2001
Cross Media Marketing Corporation (AMEX: XMM), a direct marketing company that integrates sophisticated marketing skills with new technologies, today announced a strategic alliance with Traffix, Inc. (NASDAQ:TRFX), a database marketing and management company for a proprietary and affiliate database of millions of permission base, on-line consumers. As a result of the new alliance, Cross Media Marketing expects to generate revenues of between $12 million and $15 million over the next twelve months, contributing strongly to the projected 56% to 76% increase in revenues to between $98 million and $110 million for 2001, as previously announced in a December 28, 2000 press release.
Under the terms of the agreement Traffix will develop, implement and manage an end-to-end, performance-based, e-mail marketing campaign in support of Cross Media Marketing's direct marketing business which includes direct-response sales of magazine subscriptions, buying club memberships and telecommunications services. Ron Altbach, Cross Media Marketing's Chairman and Chief Executive Officer remarked, "Our stated goal is to achieve incremental revenues accompanied by increased income and earnings per share for our shareholders. This alliance takes advantage of the tremendous cost efficiencies which can be realized by e-marketing and delivers customers to us who are both web-enabled and credit card holders. It gives Cross Media Marketing the opportunity to acquire customers at low cost while expanding our customer data base at the same time. It also serves as an example of our overall strategic initiative for 2001, previously announced in our January 8, 2001 press release, to accomplish and form a series of partnerships and acquisitions to increase shareholder value. I particularly like the Traffix arrangement because it is performance based - Cross Media Marketing only pays for services which deliver value."
As part of the program Traffix will market Cross Media Marketing's offers to its Grouplotto players and visitors (www.grouplotto.com) as well as to its proprietary database of millions of highly profiled, permission-based, on-line consumers, generating qualified sales leads and driving new customers to Cross Media Marketing. Richard Kaufman, Cross Media Marketing's President and Chief Operating Officer said of the agreement, "Our strategy involves crossing over from one media to another utilizing cutting edge technology to obtain new customers for our products and services. This alliance is a perfect example of the execution of that strategy." Kaufman further noted, "Traffix was a logical choice for this marketing partnership. Their creative programs and management execution distinguish Traffix in the Internet Direct Marketing sector. We expect these programs to deliver millions of prospective customers, adding to the eleven million people that we currently contact on an annual basis."
According to Jeffrey Schwartz, Traffix's Chairman and Chief Executive Officer, "Traffix has successfully executed on programs to generate sales and qualified leads for major credit card companies and leading telecommunications services providers. Cross Media Marketing chose to work with us not only for our reputation as successful on-line and off-line marketers, but more importantly, because we demonstrated through extensive testing that our marketing programs would produce superior results for Cross Media Marketing."
About Cross Media Marketing Corporation
Cross Media Marketing Corporation, formerly Symposium Corporation, is a technology-driven, direct marketing company integrating its sophisticated direct marketing skills with cutting-edge technologies, including interactive voice response and web-based systems, resulting in a multi-dimensional marketing platform for the international marketing of products and services. Cross Media Marketing seeks to achieve revenue growth and earnings leverage by cross marketing products and services through multiple channels to an expanding multi-million customer base utilizing state-of-the-art direct marketing strategies. Through Cross Media Marketing's voice-driven customer acquisition programs, Cross Media Marketing contacts and retains critical data on more than eleven million persons annually. The Company continues to exploit its expansive database in other technology-driven marketing channels, facilitating additional e-commerce transactions to increase revenues while concurrently lowering costs and increasing margins. For more information about Cross Media Marketing, visit the website at www.xmmcorp.com.
About Traffix, Inc.
Traffix, Inc. is a database marketing and management company for a proprietary and affiliate database of millions of permission based, on-line consumers. Traffix creates compelling content as marketing vehicles that generate revenue from hundreds of corporate customers seeking access to the consumers in the Traffix database. Traffix owns a majority interest in GroupLotto.com (www.grouplotto.com), a leading on-line, free lottery that offers its millions of monthly players an opportunity to win up to $10 million daily. For more information about Traffix, Inc. visit the website at www.traffixinc.com.
Cautionary Statement
Certain statements contained herein and in the information posted on the Company's website described above that are not based on historical fact are "forward looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Cross Media Marketing Corporation intends that such forward-looking statements be subject to the safe harbor created thereby. In addition to the 2001revenue projections contained in this release, these forward-looking statements regard Cross Media Marketing's acquisition activities, revenues, earnings, liquidity, financial condition, and ability to exploit its database and certain technological innovations and certain operational matters. Such forward-looking statements are based on current expectations but involve certain risks and uncertainties. Cross Media Marketing's actual results, performance or achievements could differ materially from the results, performance or achievements projected in, or implied by, such forward-looking statements as a result of risk factors including without limitation the following: Cross Media Marketing's need to raise additional debt and/or equity financing, the adequacy of bad debt reserves, changes in economic conditions or a material decline in the availability of consumer credit, interest rate fluctuations, Cross Media Marketing's limited operating history, Cross Media Marketing's strategy of growth through acquisitions, competitive factors, the need to manage growth, volatility in the market price of the Common Stock, risks relating to government regulation of telemarketing and internet marketing activities, and potential dilution . These factors are described in detail in Cross Media Marketing's 1999 Form 10-KSB and its Forms 10Q-SB filed with the SEC, which are incorporated by reference. Cross Media Marketing assumes no responsibility to update the information included in this press release or on its website, whether as a result of new information, future events or otherwise.
COPYRIGHT 2001 Business Wire
COPYRIGHT 2001 Gale Group
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