SOURCE: Pine Ridge Holdings, Inc.

August 04, 2008 15:14 ET

Pine Ridge Holdings -- ServeNation Goals Surpassed and Increased

FORT WAYNE, IN--(Marketwire - August 4, 2008) - Pine Ridge Holdings, Inc. (PINKSHEETS: PINR) CEO Kevin May announced today the early goals for ServeNation have been surpassed and increased.

May stated, "As our shareholders know, ServeNation became a unique opportunity for Pine Ridge Holdings. It contains a great business model, a win-win as it relates to social responsibility and what seems like unlimited growth potential. The current state of dot com models is such that the valuation for a revenue generating dot com like ServeNation is 3.75 times gross revenue. The decision was made to abandon a long-term strategy and to create a very specific and aggressive plan to build ServeNation through the holiday season. Then, using a skilled merger and acquisition firm, put the company up for sale. I have stated in the past and continue to state that part of the proceeds from the sale of ServeNation will be distributed in the form of a dividend and part used in the acquisition of additional high growth holdings. The math isn't hard. $15,000 a day in gift card sales puts ServeNation's value at $20 million.

"Andrew Maley was hired as Vice President of Sales and Marketing for ServeNation to aggressively pursue the three parts of the strategy to get us there -- 1) by October 1, hire 15 independent contractors across the country to build the number of gift card stores and then assist functioning stores with sales. The count as of today is 14 with others being interviewed. This goal will easily be surpassed in August. 2) Aid in the creation of 500 gift card stores by November 1 -- the beginning of the holiday buying season. Gift cards sales totaled $26 billion during the holiday season of 2007 and it is estimated that 500 active gift card stores will generate more than 100 orders per day. As of today, more than 650 stores have been created and I am revising the goal to 1,000 by November 1. 3) Aid in the education of consumers using the store. Having a store isn't enough; consumers must buy from it. ServeNation continues to work on tools to aid the non-profit entities however; Andrew has started work on our most exciting addition. Scripts are being written for video presentations that will be found on the ServeNation site. By September 15, anyone either wanting a store or wanting to promote their store will have video support by simply going to www.servenation.com. The education part of the strategy will be completed 45 days ahead of schedule and include powerful tools to help buyers."

May continued, "The reaching of the three parts of our strategy 45+ days ahead of schedule and the need to double the total store goal shows the strength of where we are headed. To be more specific about the sale of ServeNation, we are already in close contact with the firm that we will use for the sale. Once we are able to release news on that front we will. We do want all of the holiday season sales on the books to increase the value as much as possible. Work has already begun to facilitate the sale when it is the right time."

May concluded, "As we get closer to placing ServeNation on the market, we will release all information that we can, knowing that some confidentiality agreements and non-disclosures are already in place. Those who have done due diligence on ServeNation know that what we have is unique and the uniqueness is part of our value. In the spirit of openness, I will share just one of the types of strategies we are using behind the scenes... non-profit boards tend to be composed of successful business owners. These owners, once they fully understand what can be done with gift cards, become huge customers for the non-profit gift store. Law firms can buy all of their paper using Office Depot cards. Construction companies can use Lowe's or Home Depot cards. And in perhaps our most exciting recent negotiation, trucking companies can use our gas cards. A regional trucking company can buy more than $300,000 in gas per month."

Shareholders are encouraged to visit http://www.pineridgeholdings.com for informational updates.

This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessary estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.

Contact Information

  • CONTACT:
    Pine Ridge Holdings, Inc.
    Kevin May
    260-637-9090