LOS ANGELES, May 28, 2003 (PRIMEZONE) -- Aussie Apparel Group Ltd. (OTCBB:AASI), an emerging growth apparel company focused on the extreme sports enthusiast, announced that on May 15 it signed an agreement with Revo (UK) Ltd. to be the exclusive licensee for the Company's Hot Tuna brand in the United Kingdom and Ireland. The agreement with Revo calls for minimum sales of US$14.1 million (GBP8.7 million) over the next five years based on exchange rate as of 5/15/03 of GBP1.00 per US$1.617.
This announcement comes one month after the company announced its first licensing agreement with Frontier International Holdings for Australia/New Zealand in a agreement that requires minimum sales of AUS$53.8 million over five years. Bruce MacGregor, President & CEO of Aussie Apparel Group said, "We will continue to pursue the licensing side on the international front. Not only does it build brand awareness for our various labels, it also has a very positive impact on both our cash flow and bottom line. The licensees fund the inventory and sales/marketing efforts, and any additional cost to support them beyond what we already spend on our domestic efforts is relatively insignificant."
Added MacGregor, "We are very excited to have Revo as our UK licensee for our Hot Tuna brand. Revo has received tremendous interest from UK retailers as they seek `old school' surf brands such as Hot Tuna and there is evidence that the demand for extreme sports apparel, including surf-related clothing, is growing worldwide."
Gregory McCarry, Managing Director at Revo said, "We are extremely pleased to finalize this agreement with Aussie Apparel and we look forward to working with them in growing the Hot Tuna brand within the UK. The UK and European markets are constantly developing in respect to the global surf market and brands such as Hot Tuna enjoy tremendous brand awareness and support."
Terms of the license agreement with Revo state that it is for a minimum of ten years, with an option to extend for an additional ten years. Both parties have agreed to minimum sales and royalties for the first five years. According to the agreement, minimum royalty payments to Aussie Apparel over the next five years will total US$846,500.
About Revo (UK) Ltd.
Revo (UK) Ltd. was established in 1993 to work with Australian surf brands as a licensee and distributor. The company is based in the UK's Southwest region and today offers a total in-house package in respect to brand management from design, production, marketing, sales and distribution. In more recent times, Revo has adopted a multi-brand philosophy that Revo considers crucial to its growth over the next five years. With the inclusion of the Hot Tuna brand into the Revo portfolio, the company anticipates solid growth over the next five years. For further information please contact: Revo (UK) Ltd. c/o Emma Hartley at (44) 1872 552525 or fax to (44) 1872 553476 or e-mail to emma@revouk.com or sales@revouk.com
About Aussie Apparel Group, Ltd.
Aussie Apparel Group is an emerging growth apparel company focused on the rapidly growing extreme sports apparel market. Aussie Apparel uses a multi-branded and multi-distribution approach to market and distribute its own four brands: Hot Tuna, focused on the surfing enthusiast; Xisle, targets the surfer and skater; and Piranha Boy and Piranha Girl, its children's surfing line. For more information, visit: www.aussieapparelgroup.com or www.otcfn.com/aapg
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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.