ZiaSun Technologies Reports 2000 Annual Results

Company Reports Record Annual Revenues, EBITDA Results of $7.2 Million

On Revenues of $54.7 Million, and Significant One-Time Charges

To Solidify the Balance Sheet and Position ZiaSun for 2001 Growth



Apr 17, 2001, 01:00 ET from ZiaSun Technologies, Inc.

    SOLANA BEACH, Calif., April 17 /PRNewswire/ -- ZiaSun Technologies, Inc.
 (OTC Bulletin Board:   ZSUN) today released audited financial results for the
 year ended December 31, 2000.
     ZiaSun reported record revenues of $54.7 million for fiscal year 2000,
 compared to revenues of $23.6 million for fiscal year 1999, an increase of
 more than 130 percent.  Gross profit for 2000 increased by 149 percent to
 $26.4 million from $10.6 million in 1999.  Earnings before income taxes,
 depreciation and amortization grew 47 percent to $7.2 million in 2000 from
 $4.9 million in 1999.  However, as a result of significant goodwill and
 discontinued operations' expenses, net income for the year decreased from
 $5.96 million or $0.27 per share in 1999 to a loss of $77.2 million or
 $2.60 per share for 2000.  (The goodwill reported represents the intangible
 assets of ZiaSun's acquired companies.)
     "The company has experienced tremendous growth since 1999, as shown by our
 record revenues and gross margin," said Scott Elder, Chairman of ZiaSun.
 "It's important to note that without the goodwill impairment and the
 depreciation and amortization expenses, ZiaSun generated a healthy profit on
 EBITDA of more than $7.2 million or 24 cents per share.  It is also vital that
 our shareholders know that the company is in a much better financial position
 as a result of the one-time goodwill charges and the expenses associated with
 discontinuing the operations of certain selected subsidiaries.
     "ZiaSun now has a much cleaner balance sheet, and we will be running much
 leaner for 2001.  We do not believe that 2000's financials should have a
 negative impact on the value of the stock, rather we believe our shareholders
 own a piece of a much improved and growing company.  We are working to prove
 that value to shareholders in the upcoming quarters."
     As of December 31, 2000, the company has discontinued the operations of
 the following subsidiaries:  Asia Prepress, Asia Internet Services, Momentum
 Asia, Inc., and Momentum Internet.  The total recorded loss for these
 discontinued operations was $6.7 million.
     "In order to position our company for growth in the forthcoming quarters,
 it was important that the company recognize the goodwill charges now,
 rather than later," Elder said.  "Our revenues have grown dramatically
 year-over-year, and while any recorded loss is difficult for shareholders,
 ZiaSun is better positioned to capitalize on its international growth
 opportunities and focus on operating a profit-making corporation.  That is one
 of the reasons we are taking steps to expand and strengthen our operations in
 the countries that have shown the greatest promise during our initial visits
 in 2000."
     As of December 31, 2000, the company had cash and receivables of
 $4.81 million, total current assets of more than $5 million, and more than
 $47.7 million in total assets.  ZiaSun also reported no long-term debt and
 more than $42 million in total stockholders' equity at the close of the year.
     The company also reported that Online Investors Advantage would change
 its name to Online Investor Toolbox, with complete integration before
 September 2001.  "In connection with this name change, we are working on the
 next generation of our investortoolbox.com Web site, which we anticipate will
 provide our subscribers with more advanced tools and information," Elder said.
     For ZiaSun's most recent SEC filings, please visit ZiaSun's Web site
 (www.ziasun.com) or one of the many free financial information Web sites, such
 as FreeEdgar (www.freeedgar.com).
 
     About ZiaSun Technologies
     Headquartered in Solana Beach, California, ZiaSun Technologies, Inc. is an
 Internet technology holding company focused on international e-finance and
 investor education, along with selective e-commerce opportunities.  The
 company currently owns Online Investors Advantage (www.i-advantage.com), as
 well as a 60 percent equity position of MKZ, an LLC venture fund, of which the
 McKenna Group (www.mckenna-group.com) owns the other 40 percent.
 
 
                     ZIASUN TECHNOLOGIES, INC. AND SUBSIDIARIES
           Consolidated Statements of Operations and Comprehensive Income
 
                                             For the Years Ended
                                                 December 31,
                                       2000           1999           1998
 
      SALES, NET                   $54,667,477     $23,619,590         $--
 
      COST OF GOODS SOLD            28,275,184      13,026,015          --
 
        Gross Margin                26,392,293      10,593,575          --
 
      OPERATING EXPENSES
 
        General and administrative  19,049,784       5,493,459      77,045
        Depreciation and
         amortization expense        3,106,395         540,815          --
        Goodwill impairment
         (Note 2 and 15)            71,755,840              --          --
        Bad debt expense                93,526              --          --
        Consulting fees -
         related party (Note 6)             --         190,060          --
 
        Total Operating Expenses    94,005,545       6,224,334      77,045
 
         Income (Loss) from
          Operations               (67,613,252)      4,369,241     (77,045)
 
      OTHER INCOME (EXPENSE)
 
        Loss on equity investments
         (Note 3)                     (200,000)             --          --
        Interest expense                (4,393)        (21,247)         --
        Interest and dividend income   355,707          53,868          --
        Other income (expense)          15,423         (15,138)         --
 
         Total Other Income (Expense)  166,737          17,483          --
 
      INCOME (LOSS) FROM CONTINUING
       OPERATIONS BEFORE INCOME
       TAXES                       (67,446,515)      4,386,724     (77,045)
 
      INCOME TAXES (Note 5)         (3,101,153)     (1,754,690)         --
 
      NET INCOME (LOSS) FROM
       CONTINUING OPERATIONS       (70,547,668)      2,632,034     (77,045)
 
      DISCONTINUED OPERATIONS
 
        Income (Loss) from
         Discontinued Operations    (2,921,969)        648,457     846,365
        Gain (Loss) on Disposal of
         Discontinued
        Operations, net of income
         tax provision of $-0-,
         $2,029,420 and $-0-,
         respectively               (3,756,700)      2,683,748          --
 
      NET INCOME (LOSS)           $(77,226,337)     $5,964,239    $769,320
 
      INCOME (LOSS) PER COMMON SHARE
       (Note 9)
 
      BASIC WEIGHTED AVERAGE COMMON
       SHARES                         29,744,300   21,769,583     17,022,767
 
      NET INCOME (LOSS) PER SHARE
       COMMON SHARE
 
        Continuing Operations             $(2.37)       $0.12            $--
        Discontinued Operations            (0.23)        0.15           0.05
 
      BASIC NET INCOME (LOSS) PER COMMON
       SHARE                              $(2.60)       $0.27          $0.05
 
      DILUTED WEIGHTED AVERAGE COMMON
       SHARES                         29,744,300   25,796,000     17,122,767
 
      DILUTED NET INCOME (LOSS) PER
       COMMON SHARE
 
        Continuing Operations             $(2.37)       $0.10            $--
        Discontinued Operations            (0.23)        0.13           0.05
 
      DILUTED NET INCOME (LOSS)
       PER COMMON SHARE                   $(2.60)       $0.23          $0.05
 
      COMPREHENSIVE INCOME AND ITS
       COMPONENTS CONSIST OF THE
       FOLLOWING:
 
        Net income (loss)           $(77,226,337)  $5,964,239       $769,320
 
        Foreign currency translation
         adjustment                      (54,230)      15,436         (2,967)
 
      NET COMPREHENSIVE INCOME
       (LOSS)                       $(77,280,567)  $5,979,675       $766,353
 
 
                     ZIASUN TECHNOLOGIES, INC. AND SUBSIDIARIES
                            Consolidated Balance Sheets
 
                                       ASSETS
 
                                                           December 31,
                                                      2000           1999
 
      CURRENT ASSETS
 
        Cash and cash equivalents                  $3,851,897     $9,283,310
        Trade receivables                             954,848        744,293
        Prepaid expenses                              265,618         65,962
 
         Total Current Assets                       5,072,363     10,093,565
 
      EQUIPMENT
 
        Machinery and equipment                       288,905        174,947
        Office equipment                              169,663        125,371
        Leasehold improvements                         76,681         57,857
                                                      535,249        358,175
        Less: accumulated depreciation               (171,585)       (75,632)
 
         Total Equipment, Net                         363,664        282,543
 
      OTHER ASSETS
 
        Equity investment (Note 3)                  6,055,000             --
        Net assets of discontinued operations
         (Note 10)                                    403,915      6,148,270
        Goodwill - net of accumulated
         amortization of $3,849,826 and
         $223,535 (Note 2, 11 and 15)              35,802,447      2,756,932
        Receivables - related parties (Note 6)             --         68,236
        Other assets                                   16,048        107,338
 
         Total Other Assets                        42,277,410      9,080,776
 
         TOTAL ASSETS                             $47,713,437    $19,456,884
 
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
                                                          December 31,
                                                      2000             1999
 
      CURRENT LIABILITIES
 
        Accounts payable and accrued expenses      $1,855,544       $872,064
        Related party payable (Note 6)                     --        690,000
        Income tax payable (Note 5)                    26,958      1,947,264
        Sales tax payable                           3,004,914        136,499
        GST payable                                   112,841         74,830
 
         Total Current Liabilities                  5,000,257      3,720,657
 
         Total Liabilities                          5,000,257      3,720,657
 
      COMMITMENTS AND CONTINGENCIES (Note 3 and 4)
 
        Shares subject to rescission (Note 14)        613,830             --
 
      STOCKHOLDERS' EQUITY (Note 1 and 12)
 
        Common stock: 250,000,000 shares authorized
         of $0.001 par value, 32,675,330 shares
         issued and 32,314,630 outstanding at
         December 31, 2000, 22,205,018 shares
         issued and 22,141,818 outstanding,
         at December 31, 1999                          32,675         22,205
        Additional paid-in capital                116,909,372     12,504,547
        Treasury stock, 360,700 and 63,200
         shares, respectively                        (799,538)       (34,030)
        Other comprehensive income                         --         54,230
        Deferred compensation                         (36,097)       (30,000)
        Retained earnings /
         (Accumulated Deficit)                    (74,007,062)     3,219,275
 
         Total Stockholders' Equity                42,099,350     15,736,227
 
         TOTAL LIABILITIES AND STOCKHOLDERS'
          EQUITY                                  $47,713,437    $19,456,884
 
 
     Safe Harbor statement under the Private Securities Litigation Reform Act
 of 1995:  Except for historical information, the matters discussed in this
 news release that my be considered forward-looking statements could be subject
 to certain risks and uncertainties that could cause the actual results to
 differ materially from those projected.  These include uncertainties in the
 market, competition, legal, success of marketing efforts and other risks
 detailed from time to time in the company's SEC reports.  The company assumes
 no obligation to update the information in this release.
 
     For further information, please contact Michelle Cutting of ZiaSun
 Technologies Inc., 858-350-4060; or David Politis, cell, 801-556-8184,
 dpolitis@politis.com, or Kevin Wilson, cell, 801-898-5520,
 kwilson@politis.com, both of Politis Communications, 801-523-3730, for
 ZiaSun Technologies, Inc.
 
 

SOURCE ZiaSun Technologies, Inc.
    SOLANA BEACH, Calif., April 17 /PRNewswire/ -- ZiaSun Technologies, Inc.
 (OTC Bulletin Board:   ZSUN) today released audited financial results for the
 year ended December 31, 2000.
     ZiaSun reported record revenues of $54.7 million for fiscal year 2000,
 compared to revenues of $23.6 million for fiscal year 1999, an increase of
 more than 130 percent.  Gross profit for 2000 increased by 149 percent to
 $26.4 million from $10.6 million in 1999.  Earnings before income taxes,
 depreciation and amortization grew 47 percent to $7.2 million in 2000 from
 $4.9 million in 1999.  However, as a result of significant goodwill and
 discontinued operations' expenses, net income for the year decreased from
 $5.96 million or $0.27 per share in 1999 to a loss of $77.2 million or
 $2.60 per share for 2000.  (The goodwill reported represents the intangible
 assets of ZiaSun's acquired companies.)
     "The company has experienced tremendous growth since 1999, as shown by our
 record revenues and gross margin," said Scott Elder, Chairman of ZiaSun.
 "It's important to note that without the goodwill impairment and the
 depreciation and amortization expenses, ZiaSun generated a healthy profit on
 EBITDA of more than $7.2 million or 24 cents per share.  It is also vital that
 our shareholders know that the company is in a much better financial position
 as a result of the one-time goodwill charges and the expenses associated with
 discontinuing the operations of certain selected subsidiaries.
     "ZiaSun now has a much cleaner balance sheet, and we will be running much
 leaner for 2001.  We do not believe that 2000's financials should have a
 negative impact on the value of the stock, rather we believe our shareholders
 own a piece of a much improved and growing company.  We are working to prove
 that value to shareholders in the upcoming quarters."
     As of December 31, 2000, the company has discontinued the operations of
 the following subsidiaries:  Asia Prepress, Asia Internet Services, Momentum
 Asia, Inc., and Momentum Internet.  The total recorded loss for these
 discontinued operations was $6.7 million.
     "In order to position our company for growth in the forthcoming quarters,
 it was important that the company recognize the goodwill charges now,
 rather than later," Elder said.  "Our revenues have grown dramatically
 year-over-year, and while any recorded loss is difficult for shareholders,
 ZiaSun is better positioned to capitalize on its international growth
 opportunities and focus on operating a profit-making corporation.  That is one
 of the reasons we are taking steps to expand and strengthen our operations in
 the countries that have shown the greatest promise during our initial visits
 in 2000."
     As of December 31, 2000, the company had cash and receivables of
 $4.81 million, total current assets of more than $5 million, and more than
 $47.7 million in total assets.  ZiaSun also reported no long-term debt and
 more than $42 million in total stockholders' equity at the close of the year.
     The company also reported that Online Investors Advantage would change
 its name to Online Investor Toolbox, with complete integration before
 September 2001.  "In connection with this name change, we are working on the
 next generation of our investortoolbox.com Web site, which we anticipate will
 provide our subscribers with more advanced tools and information," Elder said.
     For ZiaSun's most recent SEC filings, please visit ZiaSun's Web site
 (www.ziasun.com) or one of the many free financial information Web sites, such
 as FreeEdgar (www.freeedgar.com).
 
     About ZiaSun Technologies
     Headquartered in Solana Beach, California, ZiaSun Technologies, Inc. is an
 Internet technology holding company focused on international e-finance and
 investor education, along with selective e-commerce opportunities.  The
 company currently owns Online Investors Advantage (www.i-advantage.com), as
 well as a 60 percent equity position of MKZ, an LLC venture fund, of which the
 McKenna Group (www.mckenna-group.com) owns the other 40 percent.
 
 
                     ZIASUN TECHNOLOGIES, INC. AND SUBSIDIARIES
           Consolidated Statements of Operations and Comprehensive Income
 
                                             For the Years Ended
                                                 December 31,
                                       2000           1999           1998
 
      SALES, NET                   $54,667,477     $23,619,590         $--
 
      COST OF GOODS SOLD            28,275,184      13,026,015          --
 
        Gross Margin                26,392,293      10,593,575          --
 
      OPERATING EXPENSES
 
        General and administrative  19,049,784       5,493,459      77,045
        Depreciation and
         amortization expense        3,106,395         540,815          --
        Goodwill impairment
         (Note 2 and 15)            71,755,840              --          --
        Bad debt expense                93,526              --          --
        Consulting fees -
         related party (Note 6)             --         190,060          --
 
        Total Operating Expenses    94,005,545       6,224,334      77,045
 
         Income (Loss) from
          Operations               (67,613,252)      4,369,241     (77,045)
 
      OTHER INCOME (EXPENSE)
 
        Loss on equity investments
         (Note 3)                     (200,000)             --          --
        Interest expense                (4,393)        (21,247)         --
        Interest and dividend income   355,707          53,868          --
        Other income (expense)          15,423         (15,138)         --
 
         Total Other Income (Expense)  166,737          17,483          --
 
      INCOME (LOSS) FROM CONTINUING
       OPERATIONS BEFORE INCOME
       TAXES                       (67,446,515)      4,386,724     (77,045)
 
      INCOME TAXES (Note 5)         (3,101,153)     (1,754,690)         --
 
      NET INCOME (LOSS) FROM
       CONTINUING OPERATIONS       (70,547,668)      2,632,034     (77,045)
 
      DISCONTINUED OPERATIONS
 
        Income (Loss) from
         Discontinued Operations    (2,921,969)        648,457     846,365
        Gain (Loss) on Disposal of
         Discontinued
        Operations, net of income
         tax provision of $-0-,
         $2,029,420 and $-0-,
         respectively               (3,756,700)      2,683,748          --
 
      NET INCOME (LOSS)           $(77,226,337)     $5,964,239    $769,320
 
      INCOME (LOSS) PER COMMON SHARE
       (Note 9)
 
      BASIC WEIGHTED AVERAGE COMMON
       SHARES                         29,744,300   21,769,583     17,022,767
 
      NET INCOME (LOSS) PER SHARE
       COMMON SHARE
 
        Continuing Operations             $(2.37)       $0.12            $--
        Discontinued Operations            (0.23)        0.15           0.05
 
      BASIC NET INCOME (LOSS) PER COMMON
       SHARE                              $(2.60)       $0.27          $0.05
 
      DILUTED WEIGHTED AVERAGE COMMON
       SHARES                         29,744,300   25,796,000     17,122,767
 
      DILUTED NET INCOME (LOSS) PER
       COMMON SHARE
 
        Continuing Operations             $(2.37)       $0.10            $--
        Discontinued Operations            (0.23)        0.13           0.05
 
      DILUTED NET INCOME (LOSS)
       PER COMMON SHARE                   $(2.60)       $0.23          $0.05
 
      COMPREHENSIVE INCOME AND ITS
       COMPONENTS CONSIST OF THE
       FOLLOWING:
 
        Net income (loss)           $(77,226,337)  $5,964,239       $769,320
 
        Foreign currency translation
         adjustment                      (54,230)      15,436         (2,967)
 
      NET COMPREHENSIVE INCOME
       (LOSS)                       $(77,280,567)  $5,979,675       $766,353
 
 
                     ZIASUN TECHNOLOGIES, INC. AND SUBSIDIARIES
                            Consolidated Balance Sheets
 
                                       ASSETS
 
                                                           December 31,
                                                      2000           1999
 
      CURRENT ASSETS
 
        Cash and cash equivalents                  $3,851,897     $9,283,310
        Trade receivables                             954,848        744,293
        Prepaid expenses                              265,618         65,962
 
         Total Current Assets                       5,072,363     10,093,565
 
      EQUIPMENT
 
        Machinery and equipment                       288,905        174,947
        Office equipment                              169,663        125,371
        Leasehold improvements                         76,681         57,857
                                                      535,249        358,175
        Less: accumulated depreciation               (171,585)       (75,632)
 
         Total Equipment, Net                         363,664        282,543
 
      OTHER ASSETS
 
        Equity investment (Note 3)                  6,055,000             --
        Net assets of discontinued operations
         (Note 10)                                    403,915      6,148,270
        Goodwill - net of accumulated
         amortization of $3,849,826 and
         $223,535 (Note 2, 11 and 15)              35,802,447      2,756,932
        Receivables - related parties (Note 6)             --         68,236
        Other assets                                   16,048        107,338
 
         Total Other Assets                        42,277,410      9,080,776
 
         TOTAL ASSETS                             $47,713,437    $19,456,884
 
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
                                                          December 31,
                                                      2000             1999
 
      CURRENT LIABILITIES
 
        Accounts payable and accrued expenses      $1,855,544       $872,064
        Related party payable (Note 6)                     --        690,000
        Income tax payable (Note 5)                    26,958      1,947,264
        Sales tax payable                           3,004,914        136,499
        GST payable                                   112,841         74,830
 
         Total Current Liabilities                  5,000,257      3,720,657
 
         Total Liabilities                          5,000,257      3,720,657
 
      COMMITMENTS AND CONTINGENCIES (Note 3 and 4)
 
        Shares subject to rescission (Note 14)        613,830             --
 
      STOCKHOLDERS' EQUITY (Note 1 and 12)
 
        Common stock: 250,000,000 shares authorized
         of $0.001 par value, 32,675,330 shares
         issued and 32,314,630 outstanding at
         December 31, 2000, 22,205,018 shares
         issued and 22,141,818 outstanding,
         at December 31, 1999                          32,675         22,205
        Additional paid-in capital                116,909,372     12,504,547
        Treasury stock, 360,700 and 63,200
         shares, respectively                        (799,538)       (34,030)
        Other comprehensive income                         --         54,230
        Deferred compensation                         (36,097)       (30,000)
        Retained earnings /
         (Accumulated Deficit)                    (74,007,062)     3,219,275
 
         Total Stockholders' Equity                42,099,350     15,736,227
 
         TOTAL LIABILITIES AND STOCKHOLDERS'
          EQUITY                                  $47,713,437    $19,456,884
 
 
     Safe Harbor statement under the Private Securities Litigation Reform Act
 of 1995:  Except for historical information, the matters discussed in this
 news release that my be considered forward-looking statements could be subject
 to certain risks and uncertainties that could cause the actual results to
 differ materially from those projected.  These include uncertainties in the
 market, competition, legal, success of marketing efforts and other risks
 detailed from time to time in the company's SEC reports.  The company assumes
 no obligation to update the information in this release.
 
     For further information, please contact Michelle Cutting of ZiaSun
 Technologies Inc., 858-350-4060; or David Politis, cell, 801-556-8184,
 dpolitis@politis.com, or Kevin Wilson, cell, 801-898-5520,
 kwilson@politis.com, both of Politis Communications, 801-523-3730, for
 ZiaSun Technologies, Inc.
 
 SOURCE  ZiaSun Technologies, Inc.