BAINBRIDGE ISLAND, WASHINGTON, Mar. 15, 2010 (Marketwire) --
BAINBRIDGE ISLAND, WASHINGTON -- (Marketwire) -- 03/15/10 -- International Commercial Television, Inc. (OTCBB: ICTL) ("ICTV" or "The Company") a premier company employing the strength of prominently profiled infomercial campaigns to market and brand unique products to the global consumer through multi-channels of distribution, is announcing the following:
On March 3rd, 2010, ICTV's Board of Directors chose to terminate a test distribution arrangement with Allstar Marketing Group ("AMG"), a leading consumer product marketing company based in Hawthorne, New York, regarding the sale and marketing of ICTV's DermaWand product in the United States. The effective date of the termination was March 13th, 2010.
In an agreement entered into on a trial basis between the two companies on May 22nd, 2009, ICTV licensed the exclusive distribution of DermaWand to AMG for all U.S. sales channels with the exception of televised home shopping. These sales channels included DRTV, Internet, retail, print, telemarketing, and direct mail.
After a 9 month "testing phase", ICTV concluded that it was in its best interest to maximize the DermaWand brand's financial potential by discontinuing the arrangement and securing the licensed distribution rights back from AMG. After a 2 month transition period, ICTV plans on retaining full distribution for the product for all U.S. channels, with an approximate start date of May 15th, 2010.
During the period that AMG has distributed the DermaWand in the United States, ICTV has received a royalty on all AMG's net sales of the product. As a result, ICTV's U.S. sales have been limited to those royalty payments from AMG and ICTV's on-going sales of the product through the Home Shopping Network ("HSN"). Accordingly, ICTV's net revenues and related costs for the period when AMG retained these rights will reflect significantly lower volumes during AMG's active period (June 2009 - May 2010).
Kelvin Claney, CEO of ICTV, states that "While we appreciate the efforts of AMG, in view of the fact that ICTV has invested to date some 12 million dollars in US TV brand exposure for the DermaWand, we feel a better return for the company can be gained by ICTV taking back the full US DermaWand distribution rights." Mr. Claney also stated that he expects ICTV to significantly grow DermaWand via domestic marketing efforts in the Second Half of 2010, with plans for an expansion into retail sales channels sometime during 2011.
About International Commercial Television, Inc.
Headquartered in Bainbridge Island Washington, International Commercial Television, Inc. is a rapidly expanding global consumer products company, marketing unique and effective product brands with distribution channels in place in over 35 countries worldwide. The Company utilizes a distinctive marketing strategy and multi-channel distribution model to develop, market and sell health and beauty products under its DermaWand and DermaVital Skincare brands. Marketing and distribution of the Company's products is through infomercials, live home shopping television, mass retailers, spas and salons, online shopping and various other forms of distribution.
Contacts:
International Commercial Television, Inc.
Investor Relations
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