Sports Group International Inc. Announces Letter of Intent for Exclusive Marketing & Distribution Agreement
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--April 30, 1999--Sports Group International Inc. (OTC BB:SPGK) Friday announced that it has signed a Letter of Intent for an exclusive Marketing and Distribution Agreement with Realpure Beverage Group LLC.
A final agreement is expected to be reached and signed within the next seven to 10 days.
Sports Group International and Realpure Beverage Group expect to generate minimum revenue of $40 million over the next 3-1/2 years under this agreement.
Realpure Beverage Group has water wells producing natural spring water and artesian well water in Simpson County, Miss. The wells, founded in 1917, produce in excess of a million gallons per day of natural spring water and have a reservoir life of more than 200 years.
The company's manufacturing and warehousing facilities presently exceed 34,000 square feet and construction for an additional 52,000 square feet is planned to be completed by July 1999. Within these facilities, Realpure will manufacture and bottle Spalding Sports Drinks, pursuant to an exclusive license granted by Sports Group International and distribute the products throughout the United States and Mexico.
Spalding Sports Drinks have superior taste and added vitamins, containing the thirst-quenching purity of natural spring water. Realpure will manufacture and distribute Spalding Sports Drinks across their satellite plants to be strategically located near major consumer markets.
Sports Group International is the exclusive licensee of Spalding Sports Worldwide for the beverage industry and is currently engaged in the sales and distribution of beverages in the water/sports drink category under such names as "Spalding Sports Drinks" and "Spalding Sports Water Pure Energy" throughout the United States and Mexico. Visit the company's Web site at www.sportsgroupintl.com.
This news release contains forms of forward-looking statements that are based on the company's beliefs, as well as assumptions made by and information currently available to the company. Such statements are subject to certain risks uncertainties and assumptions that are identified and described in the company's registration statements and periodic reports on file with the SEC.