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November 15, 2001 11:56am
Gala Hospitality Corporation Makes 1st Acquisition
Source: Gala Hospitality Corporation
by: Company Press Release

(MIAMI, FL) -- Gala Hospitality Corporation's (OTC Bulletin Board: GHCP - news) embarked immediately on its stated business plan with its acquisition of Gala Entertainment, Inc., a private Florida Corporation. Gala Entertainment will be the cornerstone of Gala Hospitality's new direction. Gala Entertainment's business is the acquisition of existing and profitable adult night clubs businesses in the $10 billion adult entertainment marketplace.

Gala's focus is on rolling up clubs doing $2 million or more annually. Gala's adult club business plan calls for Gala's to acquire 12 clubs per year over the next two years.

These acquisitions represent high cash flow, independently managed and operated, high net margin businesses that seek the unity of a parent corporation that offers the liquidity of its publicly traded stock. These businesses will present an integrated and balanced image to the investment community.

Gala's business model is similar to firms like AutoNation and other roll- ups that aggregate independently owned and profitable businesses, take advantage of newly created economies of scale and co-marketing opportunities, and maximize shareholder value through a public vehicle.

For additional information, please go to our site: www.galahospitality.com or contact Mike Heilman at 410-647-9609 or at heilman@erols.com.

Safe Harbor Statement

Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competition, inability to secure investment capital or financing, new and untested products, uncertainty of revenues and earnings, fluctuations in stock price and liquidity, market conditions, fluctuating operating results, and other risks detailed from time to time in the company filings with the Securities and Exchange Commission.

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