Start-up hopes to buck current .com trend August 22, 2001 CHARLOTTE, North Carolina- Elestream.com (www.us.elestream.com) announced today that it is entering the North American market for Electrical Distribution, Automation and Control Products. The new company will operate as Elestream US, Inc. and will be owned by Elestream S.p.A. and SIEI S.p.A. of Italy. Elestream.com will be an online marketplace where consumers will actually purchase products; this fact alone separates it from the current websites of manufacturers in this market. All products will carry the SIEI brand and initial products will include AC Drives, Reduced Voltage Starters, Manual Motor Starters and a complete line of switches. The product line will grow to include Circuit Breakers, Contactors, Relays, Timers, Micro PLCs, Pressure Switches and Solenoid Valves. In short, Elestream.com will become a full service provider of power control and electromechanical products. "We feel Elestream.com will be new and different in two main ways," said Christopher Bradley, Vice President of US operations for Elestream. "First is the fact that our site is transactional. Users can actually purchase products from our site rather than simply research as is the case with most manufacturers. Second, we are bringing the product direct from the factory to the users. Our target market generally has to purchase through a distributor or from the factory at very little discount. We will bring volume level pricing to the small to medium sized customer." Bradley is aware of the volatility and current perception of .coms. "This is very different than many of the failed ventures we have read about," he continues. "Elestream.com is supported by an extremely solid brick and mortar business. SIEI has been successfully manufacturing electrical products for 65 years. So, we don't have to evangelize the products. Additionally, the e-commerce venture for SIEI has been extremely successful in Italy, Spain and the UK. We have over 1,200 active customers in Italy alone. The business plan is solid and the market is definitely here. We just need to execute." That plan will be to develop a direct channel from factory to user. Elestream.com will seek to reach the smaller OEMs, Designers and Integrators that currently purchase through traditional distributor based networks. Utilizing the power of the internet will allow for the elimination of the middleman thereby bringing these products to market at substantially lower costs. The target market will have the same purchasing power as their larger competitors. Additionally, the user should be able to realize substantial indirect savings by utilizing the time saving features inherent to the internet. Bradley is quick to point out that these savings will not come at the expense of quality and service. "We will employ a complete staff of application engineers that can assist on both a pre and post-sale basis and the products are the same high quality pieces that have been manufactured by SIEI for years." Quick delivery will also be a hallmark of the Elestream business plan. Elestream.com will maintain stock and ship from its 15,000 square foot Charlotte, NC warehouse, with same-day shipment available on most products. If required, a customer can place an order by 3:00 pm Eastern time and have it on his or her desk by 10:00 am the following business day. Elestream.com has contracted United Parcel Service to be its exclusive freight carrier. Elestream expects to be fully operational sometime in September. The preliminary product offerings can be viewed at www.us.elestream.com and more information can be requested via e-mail through [email protected]. About SIEI S.p.A. SIEI (pronounced see-ay), Società Industriale Elettrotecnica Italiana, was established in 1934 with the aim of launching innovative high quality electrical engineering products in the Italian market. In 1938, production of contactors, fuse boxes, insulated cases, push-button panels and automatic control and electricity distribution panels started under license from Klökner-Moeller, Bonn, a company which was making its name as a European pioneer and sector leader. The company grew and, after the Second World War, it moved from its Via Braida offices destroyed by bombing in 1943, to its present offices in Via Lomellina- Milan. In the 60's following the specialization trend in the industrial automation field, SIEI's first endeavor in the Speed Regulation sector began. This led to the establishment of the Electronics Section in 1973, which gave SIEI a concrete presence in the most technologically advanced sectors of the market. In 1975, sales reached 8 billion lire, and the company transformed into a joint-stock company with the new name SIEI Peterlongo S.p.A. The Regulation and Control Division moved to the 6,000 square meters of new factory space at Gerenzano, 30 Kilometers from Milan. The Automation and Distribution Division and the Fluid Technology Division kept their own management structure in Milan. At the beginning of the 80s, a subsidiary, SIEI America, was set up in Charlotte North Carolina, to further strengthen service to export machine constructors and to adapt product development to the technical requirements of the most important markets in the world. The company has seen rapid growth in the 90's. Revenues exceeded $55 million in 2000 with more than 400 employees world wide. Through various alliances SIEI has become a quality player on the world market; the best example of this would be an ongoing manufacturing and marketing contract with General Electric. The result of this growth is the most widespread sales network in the industrial automation field in Italy (12 company branches and 4 representative offices), and a presence throughout the world, with offices and personnel able to ensure expert technical assistance. Additional information about SIEI, S.p.A. can be viewed on its website, www.siei.it. About Elestream, S.p.A. Elestream S.p.A. was founded in 1999 as the e-commerce arm of SIEI S.p.A. Elestream's mission was to develop the first superstore for power distribution and automation products in Italy. Since its successful inception, additional branches have been set up in Spain and the UK. Elestream currently maintains an active client base of over 2,000 users. Additional information about Elestream, S.p.A. can be viewed on its website, www.elestream.com. Press ContactChristopher J. BradleyVP & General ManagerElestream.com2744 Yorkmont RoadCharlotte, NC 28208704-357-0800[email protected]
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