TORONTO, ONTARIO, August 8, 2006 - Savers Plus International Inc. (SAV:TSXV) has completed the acquisition of AdKey Promotions from Karistan Publishing Group Inc. of Newmarket, Ontario. AdKey has a preferred supplier agreement with a major industry co-operative representing over 1,000 hotels and lodging facilities in Canada. This group also has significant interests in the US representing over 3,500 lodging facilities.
Under the terms of the agreement, Savers Plus International Inc. (“Savers”) takes over Karistan’s 49% ownership share giving Savers 100% ownership in AdKey. Mr. Bruce Weddel, president of Karistan Publishing Group Inc. will receive a consulting fee of $60,000 CDN to support the transition for the next year and become part of the contemplated Industry Advisory Committee
``I am pleased with the relationship that has been built between Savers Plus and Karistan. I believe that the addition of AdKey to the Savers line of products will open new doors to give Savers a broader base, both in terms of territory and additional customers from which to draw on for existing Savers products. I`m looking forward to much success with Savers,`` commented Mr. Weddel.
“The completion of our public listing and Savers dedication to developing new and innovative programs that strengthen the relationship between our business clients and their customers has enabled us to complete this acquisition,” stated David Lucatch, president and CEO of Savers Plus International.
AdKey is a unique marketing and revenue generating program whereby a hotel or similar lodging facility can provide its guests with a small regional discount booklet that fits together with their “credit card” style room key. The booklet features the hotel’s brand and lodging information, as well as information on the surrounding area and local merchants. The hotel receives the booklet at no charge for distribution, with the local merchants paying for the product. The program has successfully run in Canada since 2004.
The current average length of contract with a hotel is three (3) years and represents approximately $50,000CDN in revenue for Savers over that term.
Unlike room directories that are not portable, or advertising based hotel magazines that cover a wide geographic area, the AdKey product easily fits in a jacket pocket or purse, making it easy to use and facilitate redemption at participating area merchants. The product is produced in full colour and can accommodate up to 25 local merchants in each edition.
“The AdKey product is a perfect fit for travelers that are on a budget and have little or no knowledge of the local market. AdKey allows the hotel to increase its value to its visitor without incurring additional expense,” added Mr. Lucatch
According to industry statistics, over 22 Million US travelers visit Ontario each year. Visitor spending is over $4.0 Billion annually, with over half (50%) of visitors spent nights in roofed commercial accommodations while traveling.
Savers’ AdKey program will initially roll out in Ontario, and grow across North America, as Savers increases its presence in local and regional markets.
About Savers Plus International Inc.
Savers Plus International Inc. and its divisions, develop programs that build Brand, Loyalty and Revenues. Through its integrated solutions, Savers manufactures, and markets proprietary programs and services that provide its clients with effective and cost efficient solutions to increase relationships with their customers. These include a wide range of savings and discount opportunities, soft and hard goods and loyalty based initiatives in the business to business and business to consumer sectors. Savers deploys both traditional and non traditional approach. Savers conventional approaches use Custom Coupon Cards and AdKey to deliver value. Non traditional approaches include internet based initiatives like Yes! CARD Plus and hybrid programs like Affinity Data Group and Loyalty Gaming.
Savers owns and operates a fully integrated creative, print and web production facility to service its growing client base, and works with company owned and managed systems with vendors and merchants throughout North America and Europe. Savers has developed proprietary technologies for managing these programs and manufacturing its offerings.
Savers Plus International Inc. is headquartered in Richmond Hill, Ontario, Canada. Its shares trade on the TSXV (symbol: SAV).
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not undertake any duty to update any forward-looking statements.
CONTACT:
Corporate Inquiries
David Lucatch CEO
905-763-3510
http://www.saversplus.com
Retail Investor Relations
AGORACOM
SAV@Agoracom.com
http://www.agoracom.com/IR/saversplus
Institutional Investor Relations
Rosemont Advisory Inc.
David Fletcher
416-594-9361
