DETROIT, May 13, 2004 (PRIMEZONE) -- Legend Credit, Inc., a subsidiary of Legend Mobile, Inc. (OTCBB: LGMB), today announced that is expanding it licensing efforts in the stored value market. The company is currently completing development of the Hello Kitty branded reloadable shopping card and expects to announce additional card products before the end of this quarter.
According to a recent industry study, 97 million American purchased gift cards in 2003 with total value of $43 billion. Based on prior sales of card products, Legend expects that each card of its programs will generate at least $1,000,000 of annual revenue for the company.
Legend Credit is focusing on reloadable payment cards as well as single-use gift cards. Legend Credit's cards are all bank issued-products which are accepted by as many as 30 million merchants in more than 150 countries. Additionally, if a store accepts Visa or Mastercard debit or credit cards, it will accept gift cards issued by them.
Legend Credit has recently met with a global publishing company to create card products in conjunction with well-known magazines and print publications. Legend Credit has also met with the agent for two prominent chambers of commerce and several popular celebrity brands. Legend Credit will continue to look to develop business relationships with brands that have an built-in base of customers that can be reached cost-effectively.
Legend Credit is also considering a rewards programs to associate with its stored value cards to provide cardholders with additional value as well as to build loyalty among cardholders.
With the success of its Hilary Duff Visa gift card, Legend Credit demonstrated that a market exists for teen-based card products. Parents reported to the company that they used the cards to provide spending money for teens. The cards were also popular with parents taking children on trips. Legend Credit's Hello Kitty card will allow parents to add more money to a teen's card. Two-thirds of American teenagers have purchased one or more gift cards during the last 12 months, with the majority reporting year-round gift card purchasing, not just during winter holidays, according to a recent industry survey of 1,600 college-bound teens.
Legend Credit expects to develop prepaid travel cards using the Hello Kitty brand that would not be personalized and would be used by consumers in place of traveler's checks.
Another subsidiary of Legend Mobile, Inc., Legend Studios, Inc., has announced its intention to acquire certain small-market radio stations. Legend Credit anticipates that if those acquisitions close, Legend Credit would use Legend Studios' radio time to promote Legend Credits debit cards. Advertising costs are one of the biggest expenses in the stored value industry.
Consumers interested in the upcoming Hello Kitty card can visit, www.hellokittycard.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or variations of such words are intended to identify such forward-looking statements. All forward-looking statements made in this press release are made as of the date hereof, and the company assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. Please refer to the Company's Form 10-K and other filings with the SEC for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports.