August 29, 2007 17:15 ET
SALT LAKE CITY, UTAH--(Marketwire - Aug. 29, 2007) - Broadband Learning Corporation ("Broadband Learning") (TSX VENTURE:BLC), a participant in the rapidly expanding distance learning market, today announced that i-vu USA Inc. ("i-vu") has received approval for a financing in the amount of US$10 million and has placed an initial order with Broadband Learning worth US$3.5 million under that financing and a separate order of US$0.5 million, for a total order of US$4 million. These orders are expected to be fulfilled over the next 3 months and represent the installation of a new state of the art, internet-based system to provide a digital advertising media and consumer education delivery system to customers in six major US centres. Immediately upon completion of the 3 month rollout a second project valued at $6.5 Million will commence.
The new system will be installed at chairs in 210 salons (for a total of approximately 2,100 inter-active touch screens). The concept test was completed in the UK in 2005-2006 and there are approximately 50 salons in the US which have also provided proof of concept. i-vu will now, through its partnership with Broadband Learning, bring the concept to a much broader US market through its relationships with leading US hair care organizations. Broadband Learning is the exclusive US supplier to i-vu in this endeavour. After the completion of the initial phase, the Stage 1 Rollout Plan is to involve over 700 additional salons, resulting in a combined total of 7,000 touch screens within the next 8-12 months. Longer term, the agreement between i-vu and Broadband Learning calls for the installation of 100,000 screens in 10,000 salons in the US, by 2010.
"The planning for this initial phase has been in the works for some time between i-vu, Broadband Learning, a number of major US salon chains, hair care product providers and other advertisers who wish to tap into their target demographic through hair salons", said CEO, Bob Dameron. "I am delighted that management/staff have been able to overcome numerous technical and business challenges to get us and i-vu to this important step. There are many people who have worked diligently on this project and I am very grateful for their hard work and perseverance."
John Yarnell, Chairman of Broadband Learning added, "The equipment financing is in place; i-vu and the salon companies have given us the 'green light' to start installations. We are thrilled that the implementation of this network is about to begin. With the signing of this contract and receipt of the first order, we expect the company will generate significantly more cash flow/revenue in the next three months than it did in all of 2006".
About Broadband Learning Corporation
Broadband Learning Corporation produces, delivers, supports and manages distance-learning content needed by professionals, corporations and, ultimately, consumers. The distance learning market is experiencing rapid expansion; particularly in the area of continuing education for licensed professionals where Broadband Learning has a particular focus. Using proprietary technology and nationwide distribution capabilities, Broadband Learning provides the professional development market with a patented Internet-based learning system with on demand flexibility, rich multimedia educational resources, and administrative management capabilities. This enables training companies, instructors and content providers to protect their intellectual properties and realize a significant expansion of their reach. Broadband Learning serves North America and many points around the world from its offices in Salt Lake City, Utah. Many of Broadband Learning's products are delivered under the "Broadband University" trade name.
This press release may contain forward-looking statements relating to, among other things, Broadband Learning's expectations concerning future product demand and growth opportunities and customer acceptance of its products. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. Broadband Learning disclaims any obligation to publicly update or revise any such statements.
This news release will not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The securities offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
Broadband Learning CorporationBob DameronCEO(801) 281-2266 x224Website: www.broadbandlearning.com
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