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MARKETING WORLDWIDE CORPORATION ACQUIRES
“CLASS A” OE PAINTING FACILITY TO ADVANCE VERTICAL INTEGRATION
AND EXPAND MARKET SHARE
HOWELL, Mich., May 31, 2007
– Marketing Worldwide Corporation (MWWC.OB), a leader in car
customization programs for major auto manufacturers and “Direct-to-Port”
provider to major US and Canadian vehicle processing centers, announced
today that it has acquired Colortek Inc., a “Class A”
Original Equipment (OE) painting facility, headquartered in Baroda,
Michigan.
Colortek is of the one of the few mid-sized “Class A”
painting facilities in the United States qualified to provide “Class
A” OE painting for a variety of automotive accessories. During
the last four years, Colortek has painted automotive accessory programs
for Toyota, Ford, Chrysler, Mitsubishi, Mazda, and Navistar and has
worked with Tier 1 companies such a Magna/Decoma and Meridian. Currently
produced programs include the Toyota Camry, Corolla, Matrix, Sienna,
4 Runner and RAV 4 and all spoilers for the 2005-2007 Ford Focus Street
Appearance II option package for the Ford Motor Company.
The acquisition represents an important step in Marketing Worldwide’s
(“MWW”) vertical integration strategy and secures an essential
supply and manufacturing resource to expand MWW market share in the
rapidly growing industry of automotive accessorizing and customizing
of cars and light trucks. The acquisition agreement provides for the
issuance of a number of new unregistered shares of MWW common stock
to Colortek and to the Grinstead Group, one of the largest paint distributors
in the US and a majority shareholder in Colortek. Details will be
available in an 8K report filed by the Company.
Colortek will continue to operate independently as a wholly owned
subsidiary of MWW under the helm of its current CEO Patrick Smiarowski
and his management and production team, supported by MWW top management.
James Marvin, COO and CFO of Marketing
Worldwide Corporation, stated,
“We have been working closely with Colortek for the last five
years and have the highest respect for the superior product quality
it produces while consistently meeting crucial delivery deadlines.
Its highly experienced and diverse painting work force provides the
skilled labor pool needed to deliver the paint quality at the volume
required by our very demanding OE customers such as Toyota, KIA (Mobis)
and Ford Motor Company. The acquisition allows MWW to react faster
to the dynamically changing production and “just-in-time”
inventory requirements of our customers. It will also have a significant
positive impact on our ability to acquire new large customers and
generate more revenue and net income over the next few years.”
Patrick Smiarowski, CEO of Colortek,
said, “Colortek has been working very closely with MWW over
the last few years, and I am very excited now to become an official
part of the Company. This will provide us with the required financial
resources and the managerial support to expedite our growth, tackle
promising new business ventures and expand our production capacity.
It will also allow us to effectively combine administrative and management
resources with MWW, without having to go through a complicated integration
process. Colortek has been looking at a number of opportunities to
maximize the value of our facility, experience and customer base.
We believe combining our business with MWW produces clear synergies
that will prove most beneficial for both companies.”
About Colortek,
Inc.
Colortek (“CT”) is a Tier 2 supplier for painted automobile
accessories for major automotive manufacturers in the US and Canada.
Established in 2003, CT is located on twenty acres of property in
Southwest Michigan. Its 46,000-square-foot facility houses two 100-foot
down-draft batch paint production lines utilizing an advanced plural
component Graco paint mix system devoted to “Class A”
painting of plastic automotive accessories.
By utilizing two different types of paint systems, Colortek allows
for an unusually high level of flexibility, quality and versatility
in color palettes for any kind of automotive programs for any automobile
manufacturer. Crucial color match is closely monitored utilizing
a Macbeth light and X-Rite five-angle color spectrophotometer. Other
physical paint attributes are tested and documented daily in the
450-square-foot temperature controlled physical testing lab. Colortek
has in place a highly sophisticated quality control system and has
been certified under ISO 9001:2000.
Twelve thousand square feet of the facility are devoted to the receiving,
finesse, assembly, and packaging & shipping departments, allowing
CT to receive molded raw plastic components for final manufacturing
and to handle the complex logistics for its customers’ “just-in-time”
inventory requirements. CT ships its completed products directly
to the automobile manufacturers’ warehousing, sequencing and
assembly facilities.
About Marketing
Worldwide Corporation
Founded in 1999, MWW is a high quality, full-service OEM supplier
for the automotive industry. MWW designs, develops and manufactures
high quality (OE-grade) automotive accessory components for high-volume
sales directly to the major automobile processing centers at their
US entry ports and in Canada, for installation as either Port Installed
Options (PIO) or Dealer Installed Options (DIO) programs. The majority
of MWW’s products are currently being designed and manufactured
by MWW for Toyota and KIA passenger cars, SUVs and light trucks.
MWW’s corporate headquarters is in Howell, Michigan with support
teams and satellite offices operating from different parts of the
US and Germany. Please visit www.marketingworldwide.us (under construction)
to see the latest company news and filings and subscribe to the
MWW newsletter, or e-mail your questions to investorrelations@marketingworldwide.us.
Certain statements in this press release that
are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements may be identified by the use words such as
"anticipate," "believe," "expect," "future,"
"may," "will," "would," "should,"
"plan," "projected," "intend," and similar
expressions. Such forward-looking statements, involve known and unknown
risks, uncertainties and other factors that may cause the actual results,
performance or achievements to be materially different from those
expressed or implied by such forward-looking statements. The Company's
future operating results are dependent upon many factors, including
but not limited to the Company's ability to: (i) obtain sufficient
capital or a strategic business arrangement to fund its expansion
plans; (ii) build the management and human resources and infrastructure
necessary to support the growth of its business; (iii) competitive
factors and developments beyond the Company's control; and (iv) other
risk factors discussed in the Company's periodic filings with the
Securities and Exchange Commission, which are available for review
at www.sec.gov under "Search for Company Filings."
Pursuant to a September 15, 2006 agreement, Consulting For Strategic
Growth1, Ltd. (“CFSG1”) provides Marketing Worldwide Corporation
with consulting, business advisory, investor relations, public relations
and corporate development services. Independent of CFSG1’s receipt
of cash compensation from MWW, CFSG1 may choose to purchase the company’s
common stock and thereafter liquidate those securities at any time
it deems appropriate to do so
.
COMPANY CONTACT:
Rainer Poertner
Executive Vice President
Tel: 1-517-540-0045, x43
Fax: 1-517-540-0923
rpoertner@marketingworldwide.us
www.marketingworldwide.us |
INVESTOR RELATIONS:
Stanley Wunderlich, CEO
Consulting for Strategic Growth 1
Tel: 1-800-625-2236
Fax: 1-212-337-8089
info@cfsg1.com
www.cfsg1.com |
MEDIA RELATIONS
Daniel Stepanek
CFSG1
Tel: 1-212-896-1202
Fax: 1-212-697-0910
dstepanek@cfsg1.com |
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