E-Retail PLC first day of trading tomorrow

[jess1]

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Trading under ERL

Business of the Company

The Company was formed to act as a consultant in the development of online retail companies. The Company intends to provide e-commerce experience as well as management and financial assistance to those companies.
After Admission the Directors will conduct detailed analysis of a number of potential development targets.
The Company intends to derive management fees as those companies are taken to further stages of their own development as well as taking equity stakes in its clients.
The Directors intend to focus on the online retail sector, whose products and services cover a multitude of activities ranging from clothing to gambling. Opportunities may be sought in other online businesses.
The Company has been established by two former directors of ASOS Plc, the online retailing group whose shares were one of the best performers on AIM in 2004.

The two executive Directors of the Company were directors of ASOS Plc and were strategic participants in that company’s development and its subsequent growth. ASOS plc, an internet retail and marketing services group, was established in June 2000 and admitted to AIM in October 2001. Its principal business is ASOS.com, a leading online fashion and beauty retailer and a top five company in the Hitwise UK Apparel and Accessories category.
The Directors believe that they have extensive knowledge and experience in the evaluation of e-commerce development and investment opportunities. The Company’s strategy will be based upon identifying, researching, evaluating and ultimately exploiting such opportunities.
A number of potential projects have already been short-listed by e-retail. These include both companies selected by e-retail as a result of its own research and others that have been proposed to e-retail as being suitable and within the business profile.

The Online Market
Home shopping on the Internet for many products such as books, groceries, DVDs and clothes, is now considered a much more convenient option. It has rapidly become a part of everyday life, it is easy to use and convenient, whilst offering many flexible delivery options. Users can shop online at thousands of sites whenever it suits them, without having to battle with traffic and crowds. People shop online not only for the convenience and the huge choice available, but also for the consumer information and significant savings that the Internet can offer.

Online shopping is estimated to be growing some twenty six times faster than the high street, as large numbers of consumers continue to switch to buying online, especially for high-ticket discretionary purchases such as LCD TVs and digital cameras.

The first secure online shopping transaction was completed over ten years ago, since then the growth of online shopping has been very impressive. It is estimated that 21m Britons shop online.

Online retail sales for November and December 2004 were up 20% on the previous year's high levels, outperforming the high street by a factor of eight. It is estimated that half of the UK population shopped online in Christmas 2004, spending more than £3bn, which represented 6.8% of all UK retail sales.

The Interactive Media in Retail Group (“IMRG”) Index reached an all time high of 1,766 in November 2004, just 57 months on from its start point of 100, in April 2000. UK online shopping sales for the calendar year 2004 were valued at £14.5bn.

Recent published research indicates that UK Internet businesses are preparing for significant expansion over the next five years. According to a YouGov poll of 2,000 consumers, the vast majority see the Internet as a growing channel for purchasing goods and financial services.
A survey in November 2004, commissioned by Direct Line, found that the number of individuals shopping online had trebled in the previous five years. In 1999 only 37% of respondents had bought anything online, compared with 94% at the time of the report.
Looking to the future, the research revealed that consumers expect growth to continue with key findings showing half of the respondents believing that 40% or more of their purchases will be online in five years' time compared to 25% at the time of the report. Almost 60% of respondents believed that their Internet usage will continue to rise steadily over the coming five years, while 23% believed their Internet usage will dramatically increase in the next five years.

Reasons for the Placing

The proceeds of the Placing will be used to provide the funds needed as working capital by the Company sufficient to develop operations in line with its strategy.

Details of the Placing

The Company is raising £700,000 (before expenses) through the placing of 20,000,000 new Ordinary Shares at the Placing Price. Assuming full subscription, the Placing Shares will represent 33.90% of the issued share capital of the Company on Admission.

The Placing is conditional, inter alia, on Admission. Dealings in the Ordinary Shares are expected to commence on 20 June 2005.


Directors and Company Secretary

Mark Watson-Mitchell, aged 58, Non-Executive Chairman

Having previously worked for four firms of stockbrokers and a fund management business, for the last thirteen years Mark has been increasingly active in the investment research of smaller companies quoted on various markets within the UK. He is the owner of SQC Research, which is involved in investor relations and specialises in preparing investment information and comment on smaller quoted companies for investment professionals.
Mark is the Executive Chairman of Addworth Plc, which is an ‘active capital investor’ and a founder of the Company.
Quentin Griffiths, aged 37, Chief Executive
Quentin was co-founder of ASOS PLC, incorporating ASOS.com Ltd and Entertainment Marketing Ltd. He was Marketing Director and on the Board of ASOS PLC until he resigned his Directorship in June 2004. He is still a significant holder of ASOS equity, with a 10.5% stake at the date of this document. Since leaving ASOS, he has been involved in the development of other online businesses.
Quentin started his career at Shandwick PR and moved to the advertising agency TBWA in 1994 where he was responsible for brand placement for clients including Nissan GB and Miller Genuine Draft.
John Morgan FCCA, aged 37, Finance Director and Company Secretary
John joined ASOS PLC in early 2000 before the company had commenced trading. He was on the board as Finance Director until he left the company at the end of October 2004. Prior to joining ASOS PLC he was Finance Manager for Maverick Presentation Products in 1999.
John was previously employed as Financial Controller for Scoot PLC from 1996 to 1998 and Sainsbury PLC where he held a variety of management positions in the Homebase and Savacentre subsidiaries between 1989 and 1996.

Robin Abeyesinhe (FCCA), aged 46, Non-Executive Director

For nearly six years from 1998 Robin was Group Finance Director and Company Secretary for the Beaufort International Group plc, the Management Consultancy Services group. He managed the group finance and company secretarial function of that AIM quoted company across 13 businesses in the UK, Sweden, France, Belgium, Switzerland and Luxembourg.
Before joining Beaufort he spent four years as the UK Finance Director for Coutts Consulting Group plc, the career and consultancy services group. Robin is the Finance Director of Addworth Plc.


Key Personnel
Jessica Luthi, aged 41, Affiliate Marketing Specialist (thats me)

[renegade]

Best wishes with this Jess, I look forward to working with you on forthcoming projects.

[jess1]

An affiliate program without renegade is like a chrstmas cracker without the crack (why does that sound sooooooo wrong,lol) you know what I mean!

[getvisible]

hehe - was just reading the http://www.asos.com/intaffil.asp page and read the

Higher commissions can be earned but this is dependent upon your performance.

. Was just going to ask for more

[Peter Dunham]

Best of luck Jess, sounds great