LOS ANGELES, Aug. 10, 2001 (PRIMEZONE) - Pervasys, Inc. (PINK SHEETS:PVYS) announced it had acquired a 33.3% interest in Unsigned on Sunset, Inc. (UoS), a private California corporation which owns and operates UnsignedOnSunset.com, in a non-dilutionary all stock transaction. Additionally, Pervasys will have the digital and Internet distribution rights on all UoS product on the same basis as its recent licensing deals with Quick Feather Productions, L.A. Nitelife and SharkLive.com.
"The acquisition is the first of a major thrust on the part of Pervasys to expand its rapid growth in the entertainment industry into music," said Lawrence Lotman, Director, who is spearheading the music side of Pervasys. "We have several deals in the pipeline which we anticipate will close soon which will evidence our commitment to, and confidence in our technology and the effort to bring media convergence to the Music Industry. UoS has a proven track record, an outstanding business model and they share our vision of humanizing the Internet while maintaining traditional values of profitability."
Unsigned on Sunset was founded to: create unique audio/video products in conjunction with sponsors and the UoS name; develop an exclusive, established, reliable roster of unsigned artists; produce and Web cast exciting, artistic live showcases of unsigned artists; and, promote career growth for performers in a rewarding, stable, professional environment. UoS management believes that, because music and entertainment have become such an immense part of today's global culture, there is a need to satisfy the market's limitless demand for exciting new talent, and that this creates a real opportunity for financial success. UoS has contracted with first class entertainment professionals and famous locations, in order to participate in Los Angeles' active social scene. The UoS presence on the L.A. music scene allows performers to be in a better position to find placement for their art in independently produced films, television shows, videos and CD's, but also to have access to a magnetic center stage, from which they can be "discovered" by main stream media.
With an ambitious production slate, largely geared towards digital and Internet distribution, Pervasys Chairman Michael Meyer believes that it can create many new and exciting venues for the use of this unsigned talent. "We're looking at production and distribution participation in dozens of feature length films and videos, as well as hundreds of hours of live video productions for the Internet. They all need music, and we were anticipating large expenditures to purchase music from other companies. We hadn't really planned on being able to acquire access to so many talented artists and quality musical production this soon into our Studio Convergence program. The association with music people who approach their art the same way we approach the film and video side of multimedia should provide enormous synergistic value. Pervasys can become more of a music marketer, rather than just a music consumer."
Unsigned on Sunset, Inc. was founded in 1997 by Lee Caplin and Arthur Aaronson, well known music industry professionals to offer new musicians the opportunity to create a powerful presence through Internet exposure. UoS produces live concerts, hosted at various famous locations on the Sunset Strip and showcased on the World Wide Web that can quickly lead industry professionals to music performers and other entertainers. The company's revenue model also produces its own musical content, sells CD recordings through traditional channels, has Internet musical download capabilities, offers product merchandising, maintains subscriptions from musician participants, networks with potential producers, performers and advertisers, and manages, publishes and licenses artists.
Lee Caplin, Chairman and co-founder, is also Chairman and founder of Starium, Ltd., a voice encryption company with defense community ties, as well as a prominent producer, attorney, educator and entrepreneur. Mr. Caplin expressed delight in the new relationship. "Bringing Pervasys into UoS along with the financial capacity of Seabreeze Investments, Inc., brings the final elements into the company which allow it to maximize its potential. We will be able to enjoy competitive advantage within the music industry by leveraging the Internet as a global platform to find, nurture and present talented performers to audiences world wide. Their technology will allow us to quickly realize our goals of building brand and act loyalty, fan and viewer adhesion, and monetary benefits to the company and strategic partners which include MP3.com and NewCastle Brown Ale."
Chairman Meyer adds that, "I have been trying for more than 12 years to put together the right deal with Lee Caplin. In 1988, we started to work together on a film project with Horton Foote (Academy Award winning writer of To Kill A Mockingbird, Tender Mercies, and A Trip to Bountiful), Randa Haines (Academy Award winning director of Children Of A Lesser God), Peter Sova (Academy Award winning director of photography of Good Morning Vietnam; Diner; and Tin Men) and Andrew McCarthy. Caplin brings so much quality and integrity to everything he does, that we've very luck to have Unsigned On Sunset as our first joint product. We've been working with Sea Breeze since 1995 on an informal basis. With both Caplin and Sea Breeze, I am very impressed with their security and defense systems orientation, and I think this is just the beginning of more beautiful relationships."
Unsigned on Sunset has streamed its concerts from the famed Whiskey A-Go-Go and Roxy clubs on Sunset Blvd in Hollywood, and recently released their first compilation album, Unsigned on Sunset.
For further information on Unsigned on Sunset please go to their Website, www.unsignedonsunset.com. Further information on Pervasys products can be obtained on www.pervasys.com, or by contacting:
Michael Meyer (U.S.) 1-323-571-3717, 1-818-365-1957, mike@pervasys.com Brian Sammartino (Canada), 1-604-732-1291. brian@pervasys.com Chan Son Jeon (Korea), 02-698-1279
Statements included within this press release that are not historical in nature constitute forward-looking statements for the purpose of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. There can be no assurance that the Company will be able to market, sell or deliver successfully its services inside or outside the United States, given risk factors including but not limited to unexpected changes in regulatory requirements, export restrictions, tariffs and other trade barriers, challenges in staffing and managing foreign operations, differing technology standards, employment laws and practices in foreign countries, longer payment cycles, problems in collecting accounts receivable, political instability, fluctuations in currency exchange rates, imposition of currency exchange controls, seasonal restrictions in business activity and potentially adverse tax consequences, any of which could adversely affect the Company's international operations. There can be no assurance that one or more of these factors will not have a material adverse affect on the Company's current or future international operations and consequently, on the Company's business, results of operations, and financial condition.