in the online sales of DVDs has signed a letter of intent to be acquired by eUniverse, Inc. Business/Technology Editors WALLINGFORD, Conn.--(BUSINESS WIRE)--April 27, 1999--eUniverse, Inc. (a.k.a. Motorcycle Centers of America, Inc.) (OTC BB:MCAMD) today announced the signing of a letter of intent to acquire MegaDVD.com (www.megadvd.com). MegaDVD.com, founded in June 1997 and profitable since inception, is one of the pioneers in online retailing of DVDs and accessories. MegaDVD.com, which carries almost every DVD title available, has been featured in Billboard magazine, the Hollywood Reporter and Stereo Review. "This is a great acquisition for the eUniverse.com network as we have been looking to make an aggressive move in the DVD arena, as we believe it's a sector poised to grow dramatically," explained Chairman Brad D. Greenspan. "MegaDVD.com immediately provides eUniverse with a loyal DVD-purchasing customer base. More importantly, we are acquiring great management, as Steve Martin, the founder and CEO of MegaDVD.com, will join the eUniverse team and be responsible for running the entire video and DVD online retail stores of the eUniverse.com network." Forrester Research projects that more than 4.3 million DVD players will be installed in North America by the end of 1999 and that penetration will approach 9 million players by the end of 2000. Paul Kagan Associates projects that annual U.S. retail revenue from DVD-video sales will be $661 million in 1999, $1.3 billion in 2000 and $2.9 billion in 2002. "I am looking forward to working with the eUniverse team," said Steve Martin, founder and CEO of MegaDVD.com. "I believe that eUniverse has barely scratched the surface on the sales of DVDs, videos and related accessories, and I intend to immediately implement plans, tapping into eUniverse's existing customer base and a growing network of traffic in order to aggressively grow sales." It is expected that a definitive agreement between MegaDVD.com and eUniverse, Inc. will be signed within 7 days and the transaction will close upon the satisfaction of certain conditions set forth in such agreement. It is expected that the closing will occur within 21 days. In the transaction, eUniverse, Inc. is issuing common stock to the shareholders of MegaDVD.com. The terms of the transaction have not been disclosed. About eUniverse, Inc. (www.euniverse.com) eUniverse, Inc. is a network of entertainment-focused commerce, community, and technology driven Web sites. Through its online commerce property, CD Universe (www.cduniverse.com, www.videouniverse.com), eUniverse competes directly with companies such as Amazon.com (Nasdaq:AMZN) and CDnow (Nasdaq:CDNW). CD Universe has over 275,000 customers and was recently rated by Bizrate, an independent commerce ranking service, the third best online shopping site for customer service out of 500 online merchants. Through its recently acquired online property, Cases Ladder (www.casesladder.com), eUniverse has added over 1 million registered users and operates one of the largest interactive entertainment communities on the Internet.
EUNIVERSE TO ACQUIRE ONLINE DVD PIONEER; MEGADVD.COM, A PIONEER
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