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Auteo Media Announces Record Revenues and Financial Results

22 May 2000

Auteo Media Announces Record Revenues and Financial Results

    SEATTLE--May 18, 2000--Auteo Media, Inc. (OTCBB: AUTM), a leading provider of point-of-purchase marketing and Internet-based services to the automotive industry, announced reported sales for the quarter ending March 31st, 2000 and for fiscal year 1999.

    -- Quarter-over-Quarter Revenues Grow 61% to $211,860

    -- Quarter-over-Quarter Gross Profits Grow 64% to $195,566

    -- Current Assets Grow 61% from the Previous Quarter

    -- Long term and Short term Liabilities Decline 46% from the 
       Previous Quarter

    Sales for the period Q1 ended March 31, 2000 increased by $80,073 to $211, 860, representing a 60.7% increase over the same period in Q1, 1999. This growth can be attributed to market penetration in Washington, new operations in California and adoption of the Company's digital photo services by its customers. Gross profit for Q1, 2000 increased to $195,566 in 2000 from $119,567 in Q1, 2000. Selling, general and administrative expenses increased from $84,396 to $211,800 in quarter ended March 31, 2000, due to costs associated with the acquisition of Tysa Corporation, our new corporate office, the addition of new routes and additional labor costs to handle the increased demand for the Company's products and services in existing and new areas. As a result, net earnings for the period decreased from a net income $23,712 to a minor loss of $26,806 in Q1, 2000.
    The Company commenced a private placement unit financing at $6.00 per unit during the quarter, receiving $950,000 in subscriptions there from. Subsequent to March 31, 2000, the Company received additional subscriptions of $200,000, together with a commitment for a further and final subscription of $200,000 for a total financing of $1,350,000. Of these proceeds, $835,000 was distributed to shareholders as part of the acquisition of Tysa Corporation and $22,946 was invested in equipment. Cash on hand increased by $45,073 during the quarter to a balance of $56,081 at March 31, 2000.
    "We are very pleased with the results of our first quarter," stated Steve Van Leeuwen, President and CEO of Auteo Media, Inc. "The business model we have developed in Washington has clearly proven itself and we anticipate excellent revenue growth as we expand into the lucrative California markets." The strength of this operation has made it possible for the Company to accelerate its e-commerce, wireless and national Internet initiatives. "We are anticipating revenues from all three of our business units in fiscal year 2000," Van Leeuwen added.