Car Rental Direct Closes Additional Financing
LOS ANGELES--April 17, 2001-- GenesisIntermedia.com Inc. (Frankfurt:GIA) today announced that its Car Rental Direct.com subsidiary has completed a round of financing totaling $2.3 million.With a fleet utilization rate exceeding 90 percent, Car Rental Direct is experiencing a high demand for rental vehicles, and is using the funding to increase its fleet for the 15 existing CRD locations, as well as for a newly opened location in Glendora, Calif. In addition, Car Rental Direct will dedicate a portion of the funding to the operation of its first automobile sales location in Glendale, Calif.
The remainder of the financing package, as well as up to $12 million in financing pending, will be dedicated toward expansion and augmentation of Car Rental Direct's fleet with respect to new locations to be opened by May 15 in Phoenix, Las Vegas and San Diego.
"We are very pleased with the progress of Car Rental Direct's expansion plan," stated Ramy El-Batrawi, chief executive officer of GenesisIntermedia.com. "CRD is proving to be a rising star within the replacement and suburban segment of the car rental industry, and is working its way toward increased revenues and profitability this year.
"The new Phoenix and San Diego locations are being opened in response to the increased demand for the CRD product in those markets. This will give us five locations in the Phoenix metropolitan area, three in San Diego, and a facility in one of the fastest-growing markets in the country -- Las Vegas."
About Car Rental Direct
Car Rental Direct.com is positioning itself to become a leader in the suburban and replacement segments of the $18.3 billion car rental industry. The replacement auto rental segment of the industry consists of rental for the purpose of temporary replacement of vehicles that have been sold, stolen or are being repaired for mechanical or accident reasons.
There are approximately 7,200 independent replacement rental car operator locations, comprising 30 percent of the locations, but representing only 5 percent of fleet size. Car Rental Direct believes that rolling up existing independent companies into a singular entity will create a market position strong enough to capture the second-largest market share in this industry segment.
About GenesisIntermedia.com
GenesisIntermedia.com is involved in several business lines revolving around the marketing and advertising of consumer goods and services. The company's main business lines are (a) direct sales and marketing of consumer products, (b) interactive advertising and data mining in retail malls under the Centerlinq brand, and (c) car rentals for the replacement market under the Car Rental Direct brand.
The company strives to create a portfolio of complementary business activities that build on the company's traditional strengths in marketing consumer goods and services. GenesisIntermedia.com markets through several channels including television, print, radio, telemarketing and retail outlets.
The company believes that significant opportunities exist to build new platforms around e-commerce activities. As such, the company has recently dedicated significant financial and human resources to develop and commercialize its Centerlinq product, two-time recipient of Microsoft Corp.'s Retail Application Developer "RAD" award for "Best Retail Headquarters Application" in the category of Core Retail Marketing.
This document contains certain forward-looking statements that are subject to risks and uncertainties. For such statements, GenesisIntermedia.com Inc. claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors discussed in GenesisIntermedia.com Inc.'s Form 10ksb filed with the Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.