XA Signs Letter of Intent to Acquire Musters & Co., a Leading New York Event Design Firm
21 December 2004 - 10:00PM
PR Newswire (US)
XA Signs Letter of Intent to Acquire Musters & Co., a Leading
New York Event Design Firm Mark Musters to Lead XA's New York
Design Center CHICAGO, Dec. 21 /PRNewswire-FirstCall/ -- XA, Inc.,
(OTC BB: XAIN), a major national event marketing firm that serves
many Fortune 500 companies, reported that it has signed a letter of
intent to acquire Musters & Co., a high-profile New York-based
event design and production firm. The acquisition, which is
anticipated to close in January, is expected to be immediately
accretive to earnings. Musters & Co., headed by Mark Musters,
is a leading provider of event design and decor for major corporate
events. Known throughout New York as well as nationally for the
brilliant environments he creates, Mark Musters has a cadre of
glamorous clients among New York fashion and media companies. He
created costumes and stage sets on Broadway, before opening his own
event planning and floral design company in 1998. Chairman and
Chief Executive Officer Frank Goldstin of XA said, "Mark Musters
irrepressible creative spirit makes his firm a perfect match with
XA. Like XA, he is dedicated to creating for his clients
overwhelming environments, what he calls a 'sensory experience.'"
Chief Operating Officer Joseph Wagner of XA said, "With the Musters
& Co. acquisition, XA expects to add more than $2.5 million in
revenue in the next year. In addition to acquiring a successful
floral and event decor business, XA will, most importantly, gain
the capability of producing in New York the one-of-a-kind event
decor and design elements that we have had to outsource in the
past. As a result, each event will be more profitable." XA
announced that Mark Musters has agreed to orchestrate XA's
state-of-the-art Design Center in New York. The center will become
the design fabrication facility for XA as well as a showcase of
XA's design and fabrication capabilities to clients. The center
will further XA's ability to fabricate decor and environmental
design elements for its prestigious roster of corporate clients and
highly visible brands. Mark Musters, who will join XA as Creative
Director, NY, said, "I am excited about working closely with XA's
great management team and its high-profile clients. By combining
talents and expertise, we will showcase cutting-edge environments
in the Design Center. Everyday, every season and every holiday will
give us a new platform to display our creativity." Working by
appointment only, Musters' operations, located in the floral
district in New York, include a wood shop and a welding shop for
constructing elaborate environments. He has created spectacular
showrooms and events for such high-profile New York-based
corporations as Revlon, Cosmopolitan, Entertainment Weekly and
People magazines, Tommy Hilfiger, VH1, SONY and Infiniti. These
assignments have made his name a household word in the high-end
event design industry. Mark Musters and his team will join XA,
subsequent to the closing of the acquisition. The event marketing
industry generates nearly $80 billion a year in direct spending,
according to a study by Deloitte & Touche LLP. Moreover,
corporate spending on event marketing has been growing; it rose 15%
in 2003 and it is predicted to generate an additional 15%-to-20%
growth in 2004. (Source: PROMO Magazine) About XA XA has full
service offices in Chicago, New York and Los Angeles from which it
provides corporations and highly visible brands with comprehensive
event marketing, design and production services. Since 1989,
Chairman and CEO Frank Goldstin and his team have been the creative
force behind prestigious, national projects for such clients as The
NBA, Disney, McDonald's, British Telecom, Song Airlines, Eurex,
Olympus, Salvatore Ferragamo, Vogue, W Hotels, ABN AMRO and
Emirates Airline. In 2003 and 2004, Special Events Magazine ranked
XA as one of the "Top 50 Powerhouse Event Companies in the World."
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. In
particular, when used in the preceding discussion, the words
"believes," "expects," "intends," "will," "anticipated," or "may,"
and similar conditional expressions are intended to identify
forward-looking statements within the meaning of the Act and are
subject to the safe harbor created by the Act. Except for
historical information, all of the statements, expectations and
assumptions contained in the foregoing are forward-looking
statements that involve a number of risks and uncertainties. It is
possible that the assumptions made by management are not
necessarily the most likely and may not materialize. In addition,
other important factors that could cause actual results to differ
materially include the following: business conditions and the
amount of growth in the company's industry and general economy;
competitive factors; ability to attract and retain personnel; the
price of the Company's stock; and the risk factors set forth from
time to time in the Company's SEC reports, including but not
limited to its annual report on Form 10-KSB; its quarterly reports
on Forms 10-QSB; and any reports on Form 8-K. XA, Inc. (OTC BB:
XAIN) takes no obligation to update or correct forward-looking
statements and also takes no obligation to update or correct
information prepared by third parties that is not paid for by the
Company. For more information, please contact: Company: Investors:
Media: Lara Shipp Truc Nguyen Stan Froelich XA VP, Investor
Relations VP, Media Relations 312-397-9100 ext. 2399 Stern &
Co. Stern & Co. 212-888-0044 212-888-0044 DATASOURCE: XA, Inc.
CONTACT: Company, Lara Shipp of XA, +1-312-397-9100 ext. 2399, ; or
Investors, Truc N. Nguyen, VP, Investor Relations, +1-212-888-0044,
, or Media, Stan Froelich, VP, Media Relations, +1-212-888-0044, ,
both of Stern & Co. Web site: http://www.expagency.com/
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