Multimedia Commerce Group (MMCG) and Gems TV Holdings Ltd. Finalize Agreement

KNOXVILLE, Tenn., July 8 /PRNewswire/ -- Multimedia Commerce Group (MMCG), the company that operates multi-channel on-air and internet shopping network, Jewelry Television® (JTV), announced the closing of an equity transaction with Singapore-based Gems TV Holdings Limited that includes an investment of $60 million in cash, inventory, and assets in exchange for up to 32.7% of shareholding interests.  MMCG also announced the successful three year extension of its bank credit agreements, further fueling the company's return to profitability and preparation for a public offering.

The equity infusion includes a $10 million cash payment, a $10 million promissory note, approximately $20 million in jewelry and gemstone inventory, and $20 million in intangible assets such as proprietary technologies, brand and domain names, web property - thaigem.com, and nearly 15,000 custom jewelry designs.  The 32.7% shareholder interest in MMCG is based upon the delivery of agreed upon assets over a 12 month period.  Gems TV Holdings Limited has also been granted representation on the MMCG Board of Directors.

Gems TV's United States subsidiary entered the US market in 2006 with offices in Reno, Nevada.  The network ceased operations in March, 2010 and filed for bankruptcy in April, 2010 citing declining profitability due to the ongoing recession. Gems TV and JTV were direct competitors in the jewelry/gemstone home shopping space.

"This transaction represents a positive scenario for both of our organizations," said Tim Matthews, CEO and President of Jewelry Television.  "The Gems TV investment greatly enhances our balance sheet and enables JTV to fast track our aggressive growth plan with one less major competitor.  We will also gain access to proprietary technologies and human capital that represent great value," noted Matthews.  Equally important, said Matthews, was the "vote of confidence in Jewelry Television expressed by our new equity investor and our bank group with a three year commitment to continue financing the company."

"This transaction allows us to reinvest assets and intellectual capital developed by Gems TV since our inception," said Jason Choo, Chairman of Gems TV. "JTV has the leadership, talent and resources for continued success and we look forward to developing their future growth together," said Choo.

Jewelry Television is exploring how best to incorporate the Gems TV reverse-auction programming into its existing fixed-price selling format, and has retained several key Gems TV employees and on-air presenters.

"Our number one priority at the moment is to convert Gems TV customers to JTV customers quickly and effectively," said Matthews.  "We want to earn their confidence and trust and bring them into the JTV family of brands as soon as possible."

About MMCG & Jewelry Television

Multimedia Commerce Group (MMCG) is a privately-held company that operates on-air shopping network, Jewelry Television (JTV), and its internet sites.  MMCG's primary retail outlet, Jewelry Television (JTV) was founded in 1993 and broadcasts its high definition programming 24 hours a day, 7 days a week, to over 80 million unique households in the U.S.  The network focuses primarily on the sale of jewelry, gemstones and related products.  Jewelry Television sales topped $515 million in 2007 and the network has been steadily rebuilding revenue since the onset of the recession.  Jewelry Television was recently ranked the 14th largest retailer of fine jewelry in the US by National Jeweler and fourth largest jewelry internet destination on jtv.com according to Internet Retailer's Top 500 Guide for 2009.  For more information, visit jtv.com.

SOURCE Jewelry Television