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Galaxy Enterprises to Acquire Impact Media LLC

Galaxy Enterprises Inc., operator of the 1,700-storefront Galaxy Mall and the MatchSite search engine, has signed a letter of intent to acquire marketing company Impact Media LLC.

Financial specifics were not disclosed. Both companies are based in Orem, UT.

Impact Media is a marketing product development company specializing in electronic multimedia brochures, custom-designed CDs and other Internet products that Galaxy plans to cross-market to its customer base and prospects from other channels. Impact posted more than $3 million in sales in 1999, Galaxy said.

Impact management anticipates its sales to exceed $7 million in 1999, which does not include additional revenue expected from the cross-marketing of each company's products to the other. In addition to its own electronic brochure and CD marketing products, Impact markets two of Galaxy's products under private labels.

Impact is a reseller for Galaxy's Banner Source, which provides banner advertising to the Internet community, and also markets Galaxy Center, under the name Impact Avenue, which is a software program that allows Internet users to create their own commercial Web sites and then publish the sites to the Internet.

"Over the past year, we have observed Impact's phenomenal growth from the sidelines and have been impressed with their success in marketing two of our products under private label agreements," said John J. Poelman, Galaxy's chief executive officer and president. "We then concluded that Impact would not only be a strategic fit in terms of expanding our products and marketing channels, but would also contribute substantially to revenue and earnings growth at Galaxy."