GameZnFlix, Inc. Provides an Operational Update

GameZnFlix, Inc. Provides an Operational Update FRANKLIN, Ky., Dec. 1 /PRNewswire-FirstCall/ -- GameZnFlix, Inc. (BULLETIN BOARD: GZFX) , a provider of online video game and DVD movies for rent or purchase, is providing an update on certain company operational issues. Gary Hohman, President of GameZnFlix, Inc., stated: "We successfully released the newest version of our website this October. This latest version offers customers a more robust and functional site along with new purchase options not available on the earlier versions. In addition, our IT team, headed by Chip Gallent, has been able to build a more in depth real-time data reporting application that allows us to data mine all customer and inventory levels as well as giving us the ability to more effectively project our inventory and customer needs. This week will also show the addition of gift certificates to our website, allowing our members and nonmembers alike to purchase memberships and pass them on to friends and family. Enhanced functions such as product availability, which will provide the members with a better indication of expected shipping time, are being developed and intended to be functional in 2005. "The company has been experiencing outbound shipping delays due to the demand on limited inventory, and return to inventory queue delays based on software communications issues. Due to increasing inventory demands, the company has increased its inventory purchase program to help to eliminate outbound shipping delays. The company has made adjustments to software to help to alleviate the return to inventory queue delays. In addition, the company is planning to add two additional distribution centers in 2005 to smooth processing for both outbound and return to inventory; locations being considered, among others, are Denver and New Jersey. National Fulfillment Inc. currently handles our fulfillment needs from Gordonsville, Tennessee and Rancho Dominguez, California. "Earlier this year, we reserved a 30 second commercial spot that was to run during the Super Bowl on the Fox Television Network. After close consideration, we have released the reserved Super Bowl slot and instead are in the process of securing time with three local Fox affiliates in Pennsylvania, Tennessee and Washington. The planned ad will be aired during the fourth quarter of the Super Bowl. Although this commercial will not be aired on the national network, the company will still be promoting the GameZnFlix brand to a large viewing audience but in a more cost effective and manageable manner. "As we close out 2004, the company will continue to maintain its Internet presence through the affiliate program launched in September 2004. The affiliate program has proven to be the most cost effective way to bring new members to GameZnFlix and we will be budgeting our marketing and advertising dollars in 2005 to target the Internet almost exclusively. Targeted print and cable spot buys will still be utilized to complement the 2005 Internet campaign. In addition, Michael Reader, VP of Sales and Marketing, will be initiating a Corporate Employee incentive program to compliment our membership drive. In 2005 we will also kick off a 'Customer Retention Program' that will focus on bringing back old customers through incentive and rewards programs. "As the company continues to move forward, it is imperative that we internalize certain functions in order to maintain a higher level of quality control, minimize capital outlay, and maximize productivity and customer experience. With this in mind, we have developed our own high speed server and redundancy system and have internalized the hosting. This alone will save the company substantial monthly provider and hosting fees, which can in turn be utilized to address the always growing inventory needs. In 2005 the company will also begin using a new lighter mailer that will result in savings on both the mailer itself as well as on postage." In addition to the above, the following milestones represent areas of development that the company is currently working on for 2005. * Product management expansion that will focus on movies and games as two separate divisions for greater quality control and effective buying. * Retail sales expansion on the site for members and nonmembers alike * Grass roots advertising campaign targeting the rural communities across the country * Research and development to identify future product delivery platforms * Sponsorship and endorsement programs * Possible expansion into the United Kingdom GameZnFlix is a company that offers video games/DVD movies for rental or purchase on the Internet with access to over about 28,000 games and movie titles. Beginning at $17.25 a month subscribers can rent a combination of both video games and/or DVD movies with no late fees or due dates or members can purchase video games and/or DVD movie titles at a membership discount. Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited to those set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at http://www.sec.gov/). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise. For further information, please contact GameZnFlix, Inc. corporate offices at 1 (888) 542-6817. Source Website: www.gameznflix.com Source: GameZnFlix, Inc. CONTACT: GameZnFlix, Inc., +1-888-542-6817 Web site: http://www.gameznflix.com/ ------- Profile: International Entertainment