Acquire Hot Tuna
And Other Apparel Brands from Federation Group
LOS ANGELES, Oct. 18 /PRNewswire-FirstCall/ -- Aussie Apparel Group, Ltd.
(A MedEx Subsidiary,) (OTC Bulletin Board: MDEX) today announced their
intention to acquire the global rights for various branded apparel properties
from Australian based Federation Group (ASX: FDR). The acquisition, valued at
approximately $7,500,000 U.S. Dollars will be paid to Federation in a
combination of stock and cash once a definitive agreement can be reached over
the next few weeks. An initial payment of cash and stock has been made to
Federation Group totaling approximately $250,000 with further payments due as
the definitive agreement is completed.
The principal brand in the proposed deal is the venerable surf and
wakeboarding brand Hot Tuna. The other apparel properties include Xisle
(surf/skate), Bulls Head, the children's surf brands Piranha Boy and Piranha
Girl, and the music inspired Frontier Touring label.
As part of the proposed deal, Federation Group will retain an ownership
stake in Aussie Apparel Group, Ltd. Federation Group Managing Director, John
Fraser said, "We are extremely excited at what this deal can do for our
various apparel brands in terms of the global opportunity. Obviously, the US
market is the key in terms of gaining a global presence and increased revenue.
We felt that Aussie Apparel Group and their management team led by
President/CEO Bruce MacGregor represents the best opportunity for our
shareholders to take advantage of the tremendous potential of the apparel
brands worldwide. MacGregor has an extensive history of success within the
extreme sports and sports wear industry at both LA Gear (President/COO) and
At the same time, MacGregor announced that upon completion of the deal,
Rod Williams CEO of Hot Tuna in Australia will move with the brands to Aussie
Apparel Group, Ltd. new corporate headquarters in Los Angeles. "With his
extensive background in the industry, particularly as it relates to Rip Curl
where he managed their International business, Rod is, and will be, an
invaluable asset to us as we endeavor to grow these brands into global
concerns." said MacGregor. In addition to managing the Hot Tuna and Piranha
business in Australia, Williams will manage the International business of all
four brands listed in the proposed deal.
Launched 33 years ago by surfers Richard and Jo-Anne Meldrum, the Hot Tuna
brand is one of four original surf brands launched in the late Sixties out of
Australia along with Quiksilver, Rip Curl and Billabong. "Hot Tuna is one the
original authentic surf brands in the world. We look forward to telling the
global surf audience about the amazing Australian heritage of this brand. Hot
Tuna epitomizes surfing in Sydney," stated MacGregor. Hot Tuna has utilized
the Piranha Boy and Piranha Girl labels as vehicles to penetrate the
children's surf market. Aussie Apparel Group made it clear they intend to
maintain that positioning.
The Xisle surf/skate brand is a mid tier brand with roots in Southern
Australia, particularly around Victoria. Federation Group purchased this brand
along with the Sea Level Surf and Skate retail chain back in July 2002. Both
parties made it clear that the retail operation will remain in its entirety
with Federation Group.
The Frontier Touring label is a music inspired apparel brand. Frontier
Touring has been at the forefront in bringing the largest acts in music to
Australia including Red Hot Chili Peppers, Madonna and Kylie Minogue. As
Williams stated, "There are enormous synergies between Hot Tuna and Frontier
Touring, as both have backgrounds generally rooted in real contemporary
culture -- Hot Tuna in surfing and Frontier Touring in live music -- where
music is a vital part of what surf culture is all about."
Summed up MacGregor, "Extreme sports and music are the new engines in
driving contemporary fashion. With this in mind, we are extremely excited at
the potential these brands offer up in terms of global revenue growth and
building shareholder value for all stakeholders, including Federation Group."
MacGregor went on to state that Aussie Apparel Group would be making other
key executive announcements over the next few weeks.
This release is intended as a forward-looking statement within the meaning
of the Private Securities Litigation Reform Act of 1995. The risks and
uncertainties that may affect the operations, performance development and
results of the Company's business include but are not limited to fluctuations
in financial results, availability and customer acceptance of our products and
services, the impact of competitive products, services and pricing, general
market trends and conditions, and other risks detailed in the Company's SEC
reports. Actual results may vary materially from projected results.
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/CONTACT: Bruce MacGregor of Aussie Apparel Group, Ltd., +1-503-329-2833/
co: Aussie Apparel Group, Ltd.
ST: Australia, California
-0- Oct/18/2002 13:48 GMT
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