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Synergy, Sinclair Seal E-Commerce Alliance

E-commerce developer Synergy Brands Inc. Wednesday signed a strategic agreement with Sinclair Broadcast Group Inc. to expand the revenue base and brand identity of their jointly owned BeautyBuys.com Inc.

Sinclair (SBGI) will provide approximately $69.4 million in television and radio airtime, media services and cash in exchange for a 50 percent equity interest in BeautyBuys.com.

BeautyBuys.com will receive advertising time throughout the broadcast day, including prime time across Sinclair's television and radio properties. The two companies plan to utilize their resources to make BeautyBuys.com one of the largest e-commerce beauty sites in the nation.

Sinclair also acquired a 16.5 percent equity stake in Synergy Brands (SYBR) for cash and additional media services.

"We believe that the integration of Sinclair's considerable broadcast, editorial, local online communities and media resources combined with BeautyBuys.com extensive product offerings, will allow BeautyBuys.com to become an industry leader," said Mair Faibish, chief executive of BeautyBuys.com and executive vice-president of Synergy Brands.

BeautyBuys.com offers approximately 5,000 brand name women's and men's fragrances, cosmetics, wellness products, vitamins and nutritional supplements, and other health, beauty and gift items.