Update on Investments

13 Mar 2008 07:00

Hecta Media Inc.13 March 2008 For immediate release 13 March 2008 Hecta Media Inc ("Hecta Media" or "the Company") Website and Domain Portfolio Acquisitions Hecta Media Inc (AIM: HCTA), the web consolidator, is pleased to announce theacquisition of popular blog, Tutorialblog.org, and a number of portfolios ofdomain names consisting of over 60,000 domain names. The Company has today acquired a portfolio of approximately 60,000 domain namesfor a cash consideration of US$1,450,000. The domain name portfolio comprisesmainly German and other European parked domain names that receive directnavigation and search traffic which can be monetized through search links togenerate click-through advertising revenues. The Company intends to maintain the domain registration of those domain namesthat the Directors consider are capable of generating ongoing direct navigationand search traffic and click-through revenues in excess of annual registrationcosts. The Directors will also consider adding new content to those sites withhigher visitor traffic to maintain traffic and revenues. There are no historicaudited trading results available for the domain portfolio. Nevertheless, basedon current monthly visitor traffic, the Directors estimate that the equivalentannualised revenue run rate of the domain names is approximately US$750,000 inaggregate and the Directors believe that the domain names are likely to make apositive contribution to earnings in the current year. Subject to the actualperformance of the domain name portfolio, Hecta Media has the option for thenext six months to acquire a further two additional domain name portfolios for afurther total consideration of US$1,900,000. A further announcement will be madein due course. In addition, the Company has also acquired three other smaller domain portfoliosfrom separate vendors, as well as the web design blog, TutorialBlog.org, whichis a popular, high-traffic website that provides design tips and tutorials tothe web design community. The total consideration for these additionalportfolios amounts to US$445,000 in aggregate of which US$415,000 has beensatisfied in cash and the balance of US$30,000 by the issue of 368,242 new HectaMedia Ordinary Shares of no par value ("Ordinary Shares") to the vendor ofTutorialBlog.org who has agreed not to dispose if its interest in the newOrdinary Shares for a period of six months other than in certain limitedcircumstances. No audited historic trading figures are available for the domainportfolios but the Directors believe that based on current visitor traffic,these portfolios are capable of making a positive contribution to Hecta Media'searnings. The new Ordinary Shares being issued will rank pari passu with the existingOrdinary Shares in issue and application will be made for the 368,242 newOrdinary Shares to be admitted to trading on AIM. Clark Landry, CEO of Hecta Media Inc, commented: "We are delighted to have acquired TutorialBlog and these domain nameportfolios. In each instance, we have acquired assets with attractive traffic,revenue and profit potential at sensible valuations. We believe thatconsiderable value can be added to each portfolio by bringing them under theHecta Media umbrella and we look forward to developing the presence and breadthof service of TutorialBlog.org. We are excited by the quantity and quality of potential website and domainopportunities that we have encountered since our admission to AIM in Novemberlast year. We believe that there are significant opportunities to continueacquiring online assets in line with our investment strategy that will make apositive contribution to the Company's financial performance." ENDS Further Information: Hecta Media IncClark Landry (CEO) Tel: + 1 310 570 3820 Beaumont Cornish LimitedRoland Cornish Tel +44 (0) 20 7628 3396 gth media relationsToby Hall /Christian Pickel Tel: +44 (0) 20 7153 8039/8036 Or visit the group's website at www.hectamedia.com This information is provided by RNS The company news service from the London Stock Exchange