Los Angeles, CA–(HISPANIC PR WIRE – BUSINESS WIRE)–July 13, 2005–Direct Response Financial Services, Inc. (OTCBB:DRFL), a leading provider of stored value and debit card products and services to Hispanics and other underserved consumers, today announced that it had signed a letter of intent to acquire del Rey Marketing, Inc., located in Los Angeles, California, for $12,000,000 in cash and stock. Closing of the acquisition is contingent upon successful completion of an audit of del Rey Marketing’s financial statements and approval of a joint operations budget for year 2005/2006. Chris del Rey will continue to act as the CEO and President of del Rey Marketing. Mr. del Rey will also continue in his role as an advisory board member to the Company. Additional terms were not disclosed at this time.
del Rey Marketing is a leader in Hispanic marketing and advertising to the grocery sector. del Rey Marketing also directs and produces live events featuring Latin music artists. These live events promote major packaged goods companies and other retailers seeking a direct relationship with the Hispanic consumer.
In its 9 year history, del Rey Marketing has consistently proven itself to be a successful business. Over the last several years del Rey Marketing has generated revenues in excess of $3,000,000 and anticipates fiscal 2005 revenues to exceed $3,500,000. del Rey Marketing’s operating margins are estimated at 40% and will positively impact Direct Response’s financial statements. In addition, del Rey Marketing’s success of growing revenues while maintaining high operating margins by keeping expenses low is expected to result in continued growth in both revenues and margins for Direct Response.
T. Randolph Catanese, CEO and President of Direct Response Financial Services, stated, “Chris del Rey and his company del Rey Marketing, Inc. make our company an immediate leader in the Hispanic marketing space. His understanding of the Hispanic culture and his experience in translating that understanding into profits will significantly impact our business and will immediately lead to greater bottom line profits. Further, Chris del Rey will be joining our management team as the CEO and President of del Rey Marketing and we are confident that his leadership will assist and expedite our business model, particularly by providing us an in-house solution for our growing Hispanic financial services business.”
“del Rey Marketing was looking for a means to leverage its understanding of the Latin consumer,” said Chris del Rey, CEO and President of del Rey Marketing, “and by joining forces with Direct Response Financial Services we now have the ability to combine our resources to deliver a single solution for our clients which includes banking, technology and marketing.” Mr. del Rey went on to say, “Direct Response Financial Services together with del Rey Marketing will be able to provide unmatched service and solutions for those companies, large and small, seeking to directly market to the Hispanic consumer. We truly will be the multi-cultural marketing solution.”
About del Rey Marketing, Inc.
Chris del Rey is President and Founder of del Rey Marketing, a leading Hispanic marketing company. As a 100% Hispanic owned and operated company, del Rey Marketing specializes in grass roots marketing campaigns for grocery retailers and National consumer packaged goods companies targeting the Hispanic consumer. Del Rey Marketing manages marketing programs for grocer retailers targeting Hispanic consumers across the country including Unified Western Grocers and the independent group of grocery retailers, in Los Angeles, which together are the largest grocer retailer group catering to the Hispanic consumer in the U.S. The company’s marketing programs are designed to drive incremental traffic into stores, resulting in incremental sales increases in each grocer retail store. Del Rey Marketing also works with some of the largest consumer packaged goods companies in the world, creating Hispanic consumer and retail programs for the top grocery retailers in the Nation. Mr. del Rey founded del Rey Marketing in 1996 and has grown it from a small operation servicing the Los Angeles area to one of the leaders in its niche in the U.S. In addition to Los Angeles, the company has grown into top Hispanic markets across the U.S. including Houston, Chicago, New York, Miami, and many others. Direct Response Financial Services recently announced a strategic alliance with del Rey Marketing, whereby del Rey Marketing will support the roll out of Direct Response’s proprietary DirectLoad Network(TM) debit card loading network into Hispanic grocery retailer stores Nationwide and to countries in Latin American.
About Direct Response Financial Services, Inc.
Direct Response Financial Services, Inc. provides financial, technology and marketing solutions in the emerging stored value marketplace. The Company specializes in the delivery of branded and co-branded stored value products including pre-paid cash cards and pre-paid telecom products. The Company’s focus is on the delivery of its products through its proprietary relationships with leading financial, media, merchants and retailers to the financially underserved or unbanked. By focusing on the underserved and unbanked population segment, the Company has become one of the largest issuers of pre-paid cash card products to Hispanics in the United States. Through its proprietary loading network, the DirectLoad Network(TM), the Company allows its customers an easy and convenient means to load their pre-paid cash cards and to obtain other financial services. The Company also maintains an extensive Internet presence for its customers primarily through direct response in combination with culturally relevant media partners. For more information on the Company please visit http://www.drfs.net or visit http://www.directcardservices.net
To learn more about its pre-paid products please visit http://www.dcsmediacard.com
Statements that 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 necessarily estimates reflecting the Company’s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, government regulation, managing and maintaining growth, and the effect of adverse publicity, litigation, competition and other factors that may be identified from time to time in the Company’s public announcements.
MCC Financial Services
Leslie J. Richardson
310-453-4667 x 239