Leisureplanet Holdings Announces The Formation of Hotelsupplygroup.com, E-Commerce Joint Venture Wit

In a further step towards expanding its electronic commerce presence, Leisureplanet Holdings Ltd. (Nasdaq: LPHL) and Leisureplanet, an Internet travel services provider that is 81%-owned by Leisureplanet Holdings, today announced that they have entered into a joint venture agreement with Intercommerce Trading LLC, of New York, a privately held e-commerce supply company, to create Hotelsupplygroup.com, an online business-to-business hotel supply company.


The joint venture has entered into a three-year agreement with Leisureplanet for access to its online hotel database and will pay Leisureplanet an annual licensing fee of $1 million over this three-year period. Hotelsupplygroup.com will initially offer a broad range of goods and services to the more than 17,000 contracted hotels in the Leisureplanet database. Its goal is to become a major international business-to-business e-commerce supplier to the hotel and catering industry.


Hotelsupplygroup.com owns the rights to the following URL’s: hotelsupplygroup.com; leisuresupply.com; leisurecommerce.com; and hotelsource.com.


Clive Kabatznik, Chief Executive Officer of Leisureplanet Holdings, said: “The creation of Hotelsupplygroup.com marks a significant expansion of our e-commerce business activities. By teaming up with Intercommerce, we have an ideal partner to create an e-commerce platform to match international hotel suppliers with hotel and catering industry customers. Leisureplanet’s ongoing relationship with its online database of 17,000 contracted hotels will provide an excellent springboard for the successful launch of this new venture and enable us to create additional value for our shareholders.”


Pierre Kleinhans, Chief Executive Officer of Leisureplanet, said “This transaction offers further validation of Leisureplanet’s business model. The $3 million in licensing revenue that Leisureplanet will earn over the next three years is evidence of the wisdom of establishing our world-leading market share in contracted independent hotels. This segment already produces larger commission revenues per transaction for us and provides great opportunities for value-added services. Our relationship with Hotelsupplygroup.com will greatly benefit hotels contracted to Leisureplanet, as they will they gain access to some of the broadest geographic distribution available on the Internet today and will have access to attractive supply deals through their combined buying power, something previously restricted to the largest hotel organizations. In the near future, we plan to develop a wide range of Leisureplanet.com branded products to be distributed to all of the hotels in our database. We believe this will help us to build enormous brand awareness among international travelers.”

ADVERTISEMENT


Charles Edelstein, President of Intercommerce, said: “We are delighted to partner with Leisureplanet Holdings to create Hotelsupplygroup.com. This is an ideal marriage of complementary strengths working to create a unique e-commerce company. Leisureplanet brings unmatched international hotel relationships and recruitment expertise. Intercommerce brings its formidable business-to-business marketplace access and e-commerce expertise to the creation of this new online distribution channel. Our experienced account management team has been sourcing and selling merchandise to leading discount retailers transacting business in this space for more than twenty years. I believe that the combination of these resources gives Hotelsupplygroup.com the potential to grow into a large, highly profitable e-commerce company.”


Intercommerce Trading LLC, is a privately owned online business-to-business trading company. Part of the ICES group of companies, Intercommerce provides online matching of thousands of merchandise buyers to numerous suppliers in a wide variety of fields. Intercommerce management has more than twenty years of experience in sourcing and selling merchandise to leading discount retailers. Among the current e-commerce companies served by Intercommerce and the eMarketplace group of companies are merchandise-online.com, GLMmarketplaces.com and icesinc.com.


Leisureplanet is an Internet-based international travel services company with the world’s largest image-rich hotel database; flight, car and hotel reservation facilities; and comprehensive proprietary travel guides for more than 180 travel destinations. Leisureplanet is committed to achieving leadership in global travel e-commerce through offering tailored services in European and other international markets. Operations include multilingual call center and customer support facilities, two electronic publishing units, an information system and Website development unit, a hotel recruitment center, and a local travel agency partner network.


Leisureplanet offers choice, competitive prices and customer service. The company is in the process of deploying localized Websites supported by local customer service agents in European and other international markets. Each local Website will provide a comprehensive selection of competitively priced travel products for local consumers, presented in the local language.


Leisureplanet is 81%-owned by Leisureplanet Holdings, Ltd. (NASDAQ: LPHL), a publicly traded company whose holdings also include businesses in various industries, including value-added convenience foods and leisure products.


——-