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Ableauctions Initiates Plan to Franchise and License Its Liquidation and Auction Operations NationallyFIFE, Wash. --(Business Wire)-- March 7, 2005 -- Ableauctions.com Inc. (AMEX:AAC) (the "Company") announced today that, following the successful licensing of the Company's auction business in British Columbia in 2002, it has initiated a plan to franchise the Company's liquidation and auction operations nationally. The move by Ableauctions to license its technology and business model underlines the Company's intent to achieve continuous business growth and create a number of additional outlets, while sharing advertising costs and economies of scale attained through increased purchasing power. The franchise concept, if successful, may also develop not only an income revenue to Ableauctions from the initial licensing fees, but because the proposed agreements are based on a percentage of revenue of each of the Ableauctions franchisees, may also provide a continuous income stream from each of the franchised locations. The Company believes it can capitalize on what it considers to be a growing demand for its liquidation operations and auction broadcasting services, and could enable Ableauctions to expand faster than through organic expansion alone. A key ingredient to this expansion strategy is the development of a smaller version of the Company's revenue model, currently consisting of three distinct segments: the operation of a retail liquidation outlet store, the provision of live auction and Internet broadcasting services, and the resale of large volume surplus inventory to resellers. The development of the smaller model makes it easy for auction houses or franchisees to adopt the model. Based on preliminary feedback from the franchise industry, the Company believes it has one of the most unique models to ever enter the franchise space. The Company's franchise concept not only includes specific facility requirements, specific equipment requirements and the exclusive use of the Company and its affiliate's technology, but it also includes a proprietary training program developed by the Company for the auction and liquidation market. The Company intends to complete the development phase of the franchise program in the second quarter of 2005 and begin selling the first two franchises in the third quarter of 2005. Until Ableauctions demonstrates that its concept is a safe and sure bet in at least two independent markets, management believes it premature to project how soon Ableauctions will roll-out additional franchises. The Company realized over $500,000 in consideration from its 2002 licensing agreement with a British Columbia company to sub-license the name "Able Auctions" for the purpose of conducting live auctions in British Columbia. For more information on the Ableauctions franchise expansion, contact [email protected] About Ableauctions.com Ableauctions.com is a high-tech auctioneer that conducts auctions live and simultaneously broadcasts them over the Internet. With the experience of over 3,000 auctions, the Company has developed state-of-the-art technology to broadcast Internet auctions (www.ableauctions.com/technology) and currently provides technology and related services to auction houses, enabling them to broadcast auctions over the Internet. For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com. For more information, contact Investor Relations at [email protected]. This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company's financial position and the Company's business strategy. The words or phrases "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers" or similar expressions are intended to identify "forward-looking statements." These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the performance of our staff, management, financing, competition, on-line auction business, our ability to implement or manage our expansion strategy, general economic conditions, our ability to license our software to other auction houses, our ability to acquire profitable companies and integrate them into our business successfully and other factors that are detailed in our Annual Report on Form 10-KSB and on documents we file from time-to-time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's expectations and estimates. The Company does not realize nor book the full revenue of auctions that it facilitates in its financials, only the net auction fees, that can vary from time-to-time, that it realizes. |
