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Alloy Acquires Mail-Order Giant Dan's Competition
Alloy Acquires Mail-Order Giant Dan's CompetitionAlloy a Generation Y-focused media company and direct marketer, today announced that it has acquired Dan's Competition, Inc., a major direct marketer to teenage boys specializing in BMX biking equipment and related apparel.

Under the terms of the agreement, Alloy has issued approximately 2.1 million shares of its common stock and paid $11.0 million in cash to complete the acquisition.

Located in Mt. Vernon, Indiana, Dan's Competition was incorporated in 1996 and has become an important direct marketer to teenage boys and a recognized distribution brand in the action sports market. Through a convergence marketing model that features the Dan's Competition print catalog and Web site (, Dan's has developed a highly responsive database of Generation Y customers. Dan's sells a complete line of BMX-style bicycles, parts, safety equipment, apparel and accessories from key brands including Huffy, Hoffman and Free Agent bikes and Etnies, Split and DC apparel and footwear. In bringing together the Dan's and CCS databases, Alloy solidifies its strong position in direct marketing to teenage boys while adding another marketing channel into the Generation Y demographic group.

Matthew Diamond, Chairman and Chief Executive Officer stated, "We are extremely pleased to announce this acquisition as we believe that Dan's is the premier direct marketer of BMX products to Generation Y boys. Dan's database of loyal buyers and action sports enthusiasts supports a highly effective multi-channel distribution model similar to that of Alloy and CCS. Additionally, we plan to leverage Dan's strong distribution brand and market position to further drive sponsorship revenues for our media clients as this acquisition augments our ability to reach the teen boy market. This deal represents an opportunistic step as we continue in our strategy to build the leading Generation Y-focused marketing company."

Daniel Duckworth, founder and CEO of Dan's Competition, stated, "We are excited to bring together Dan's with Alloy to capitalize on Alloy's strength in the marketplace and database marketing capabilities. We expect that our shared resources will better serve our Generation Y customers and allow us to more fully realize the economic opportunities in our powerful direct marketing franchise."

Mr. Diamond concluded, "We expect Dan's Competition to provide Alloy with a strong source of additional revenue and earnings growth. We anticipate that the business will generate $10 million to $15 million of revenues over the next year with an operating margin in excess of 15%. By combining Alloy's database marketing and circulation management capabilities with Dan's productive database and strong market position, we expect to drive rapid revenue and earnings growth from this business in the years to come."

About Alloy

Alloy, Inc. is a youth-focused media company and direct marketer providing community, content, commerce and entertainment to Generation Y, one of the fastest growing segments of the U.S. population. Alloy's convergent media model uses a wide range of media assets such as direct mail catalogs, Web sites, magazines, college and high school newspapers, and college guides to reach more than 15 million Generation Y members each month. Alloy leverages its broad reach in the Generation Y community by offering a host of marketing and advertising services to marketers seeking to connect with the Generation Y audience, as well as selling apparel, accessories, footwear, room furnishings and action sports equipment directly to the youth market. For further information regarding Alloy, please visit our Web site ( and click on "Investor Info".

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