Contact Information: Company Contact Rick Johnston Director of Shareholder Communications Tel: 760-668-1274 Email: Rick@usdrycleaning.com www.usdrycleaning.com Investor Relations: Stanley Wunderlich CEO Consulting For Strategic Growth 1 Tel: 800-625-2236 Fax: 646-205-7771 Email: info@cfsg1.com Web site: www.cfsg1.com
U.S. Dry Cleaning Corporation Acquires Competitor Increasing Annualized Revenue to Over $22 Million and More Than Doubles Its Revenues From Last Year's Same Quarter
| Source: U.S. Dry Cleaning Corporation
PALM SPRINGS, CA--(Marketwire - March 27, 2008) - U.S. Dry Cleaning Corporation (OTCBB : UDRY ) ("U.S. Dry Cleaning," "USDC") is proud to announce that it has
acquired the assets of Zoots Corporation, located in Portsmouth, Virginia.
Zoots is a premiere chain on the east coast and this acquisition marks the
emergence of a new geographic area for USDC giving it a presence on both
coasts.
Zoots is the second acquisition USDC has made this quarter. This puts USDC
on track to achieve its goal of a $100 million revenue run rate by the end
of 2008. In February, USDC acquired the leading dry cleaning business in
Central California. Together the two acquisitions will increase the
Company's annualized revenue run rate by 120%.
Robbie Lee, Founder and CEO, USDC said, "We are determined to carry out our
game plan of buying market share leading companies that have strong cash
flow. With this acquisition of Zoots and our previously announced
acquisition in February of Team Enterprises Inc., and their related
entities in Central California, we are on track to achieve our goal of a
$100 million run rate by the end of 2008. The acquisition brings revenue,
volume and talent to USDC. Let me assure our shareholders, this is our
first of several planned acquisitions in the eastern half of the U.S."
According to the terms of the acquisition, USDC paid a total of
approximately $1.9 million, which included approximately $940,000 in cash
and the balance in a short-term note.
William Wall, formerly of Zoots and now General Manager of USDC Portsmouth,
Inc. stated, "We are very enthusiastic about joining the USDC family and
excited to be part of the effort to create the nation's premier dry
cleaning chain."
About USDC Corporation
USDC'S mission is to create the premier national chain in the dry cleaning
industry. The Company's management team has extensive experience in retail
consolidations and premier dry cleaning operations with a proven operating
model. Management intends to rapidly acquire profitable, market-leading
operations at accretive valuations. Each acquisition target is expected to
be self-sufficient, and field management will remain in place to ease the
assimilation.
USDC Management believes the greatest value achieved in any consolidation
occurs during the earliest phases. As a result, USDC intends to grow as
rapidly as possible to maximize shareholder value.
This release is provided for informational purposes only and should not be
construed as a solicitation to invest. USDC'S future operation results are
dependent upon many factors, including but not limited to (i) the company's
ability to obtain sufficient capital or a strategic business arrangement to
fund its expansion plans; (ii) the company's ability to build the
management and human resources and infrastructure necessary to support the
growth of its business; (iii) competitive factors and developments beyond
the company's control; and (iv) other risk factors discussed in the
company's periodic filings with the Securities and Exchange Commission,
which are available for review at http://www.sec.gov under "Search for
Company Filings."
In accordance with a December 5, 2006 agreement, Consulting For Strategic
Growth 1, Ltd. ("CFSG1") provides USDC Corporation ("the Company") with
consulting, business advisory, investor relations, public relations and
corporate development services. CFSG1 receives only restricted stock as
compensation from the Company. CFSG1 may also choose to purchase the
Company's common stock and thereafter liquidate those securities at any
time it deems appropriate to do so. For more information please visit
www.cfsg1.com.