FOR IMMEDIATE RELEASE NEWS
July 6, 2003

Contact: Larry Eddy

RCUniverse.com and RCAirport.com combine to form r/c super site

[size=1]The Web’s two leading R/C sites will deliver an unparalleled array of services to
radio control airplane, jet, car, helicopter and boat enthusiasts



LONE TREE, COLO. — VLM, Inc., creator of RCUniverse.com, and Kranitz Enterprises, Inc. (“KEI”), creator of RCAirport.com and the RCMarket.com classifieds network, today announced a merger that will result in the world’s largest, most versatile community Internet site for radio control hobbyists of all types. The new site, which is set to officially launch in mid-July 2003 under the freshly redesigned RCUniverse brand, will be owned and operated by newly formed 24-7 RC, LLC., a Colorado-based subsidiary of KEI and VLM.


By combining the enormously popular RCUniverse.com forum with the leading edge product research and comparison technology pioneered by RCAirport.com, 24-7 RC will deliver the broadest array of online R/C services on the Web. In addition, KEI’s innovative RCMarket Ad Network (with completely new auction and classified ad services) will be folded into the new organization, giving the new RCUniverse.com a powerful syndicated marketplace from which members may buy and sell R/C equipment. “This is a one-plus-one-equals-three proposition for RC enthusiasts worldwide,” said new company President, Marc Vigod. 24-7 RC’s new CEO, Michael Kranitz, couldn’t agree more. “Marc and I met for the first time in February and within a few hours we knew we were on to something. Each of our sites brings something special to the table. Combining them into a single resource ought to please everyone in the universe of radio control,” he said.



Members Get More of What They Like

According to Vigod, the new site will offer everything that RCUniverse.com currently offers, everything that RCAirport.com currently offers and “a suitcase full of brand new services for car, boat, helicopter and airplane hobbyists.” Members of both sites will be automatically and seamlessly integrated into the new RCUniverse.com. On the scheduled launch date (which will be posted on both sites shortly before actual launch), visitors to either domain will be routed to the new RCUniverse.com, where their existing username and password will give them access to an enormous assortment of R/C content and resources.

Intelligent Discussions

The discussion forum currently offered by RCUniverse will remain familiar to its current users, but offer them more features and more intelligent function. The company says that shortly after launch, it will deeply integrate the discussion forum into what is now the RCAirport interactive Product Guide. “Using our ProductLink technology, users will be able to search for new forum posts by specific product and link directly to product profiles from related forum posts. “Any person opening a discussion thread can relate that thread to a particular product in the Product Guide as well as to any classified ads or auctions for that product, which gives other members reading the post an unprecedented level of one-touch connectivity to related information,“ says Kranitz.

According to Vigod, RCUniverse will also introduce its Electric Flight Universe, which will feature dedicated discussion and product information targeted to the rapidly growing area of electric aircraft. For current members of RCAirport, the merger means instant access to the most popular R/C discussion forum on the Web. “RCUniverse is a very exciting place where visitors become instantly immersed in entertaining and informative discussion,” said Kranitz. According to Kranitz, RCAirport will drop its forum, but integrate its existing posts and user statistics into the new combined forum. The site will “scream,” beams Vigod. “We just acquired 7 new enterprise-level servers, including 8-processor and 4-processor “Xeon” database servers, to ensure that users have a high speed and reliable interaction with the new site.”

Powerful Product Guide

At launch, the RCU Product Guide will contain more than 4,000 items from at least 350 different manufacturers. “Our car, boat, heli, airplane, engine, and radio equipment guides are unrivaled,” says Vigod. Indeed, the guides offer users the unprecedented ability to rate, review, compare, research, offer tips and link to retailers of a full range of R/C products and accessories. For example, a user will be able to compare up to three cars side-by-side, “drill” into one of the cars, view specs, read member ratings, find after-market accessories and then see what compatible equipment other members have suggested for that car. Retailers will be able to purchase a limited number of positions on each product’s “Buy It” tab so members can link directly to retailers of that product. The slots sell for $1.00 per month and can be set up automatically by any retailer with an Internet connection.

Members Make the Call on Content

The new RCUniverse will provide its members with unparalleled control over what content they see. According to Kranitz, all members may select their two favorite R/C interests (e.g. cars and helicopters) either during registration or at any time from their “My Account” area. The site then displays content related to those preferences as the user navigates through the magazine section, new product introductions, auctions, classified ads and even the discussion area. “Members are certainly free to look at content related to other areas of R/C, but the site will default to showing content in the member’s preferred R/C categories,” says Kranitz, who adds that “the site will even serve relevant advertisements to members who have set their R/C preferences.”

For those talented with camera and keyboard, the new site will offer the opportunity to post fully-formatted product reviews right from the member’s desktop using the site’s “Quick Review” technology. “The Quick Review tool gives our members the ability to easily contribute car, boat, airplane or helicopter reviews that look great and are easy to produce with no programming or knowledge of HTML,” says Vigod. The system automatically formats text and pictures for anyone who wants to be a “Contributing Editor” to the site.

R/C Community Tools

The merger also brings with it a host of tools and services currently being offered on RCAirport.com. “We will keep and enhance our other offerings, such as club home pages, interactive event calendar, new product introductions, member-contributed expert reviews, and the always entertaining desert warfare “Hellfire” video game,“ says Kranitz.

The Big Secret: A Professional Grade R/C Auction – “Built by RC’ers for RC’ers”

In addition to the services currently offered by both sites, the new RCUniverse will simultaneously launch the most feature-rich R/C auction on the Internet. Designed from the ground up as the R/C hobbyist’s alternative to eBay, the auction and classified marketplace will “blow people away,” says Larry Eddy, the company’s Director of Public Relations and former marketing guru for Hobby Lobby International. “I’ve sold tons of stuff on eBay and have seen a half-dozen amateur R/C auction sites and I’m telling you, this knocks the socks off of all of them,” says Eddy.

Built for the R/C Hobbyist

Members of the new RCUniverse will be able to auction items for half the price they currently pay on eBay and take advantage of special features customized to the specific needs of the radio control enthusiast. For example, individuals posting car, boat, jet, airplane, helicopter, engine, electric motor, transmitter, receiver or servo listings can instantly incorporate free stock photos, specs and other information about their product directly into their listing.

With over 160 R/C-specific categories, users can quickly and easily find products they want. As users “drill” into specific categories (e.g. airplanes) the site’s “X-Ray Search” technology displays all of the ads in every sub-category of airplanes until the user decides to filter down the display to a specific area of interest, like giant scale, etc. “The X-Ray Search technology lets bargain hunters “see it all” but affords pin-point searching for shoppers looking for a specific product. Within major vehicle categories (e.g. planes, cars, boats & helis) a quick “top of the page” button will allow buyers and sellers to instantly filter results by industry-specific designations like “ARF” or “RTR.” Users will also be able to search for products using a manufacturer/product selector.

One of the most compelling features of the new marketplace for sellers is its ProductLink technology. With this feature, individuals who are either reading the forums or browsing the RCU Magazine or Product Guide will be able to link directly to live auctions and classified ads of the very product they are reading about at the time. “Our new ProductLink technology gives auctions exposure outside the marketplace, allowing sellers to tap into potential buyers who are not even shopping at the time,” explained Kranitz, who is the principal architect of the new market system.

All members get their own account area which allows them to track items they are selling or products on which they are bidding or have made offers. Users can set up individual product “Watch Lists” or track activity in an entire selling category. Every member will be able to customize their preferences to display listings in their area of interest (e.g. cars or helicopters) so that each time they visit the market they see their favorite ads first.

Security and Accountability

Both buyers and sellers will benefit from enhanced security and information systems built into the marketplace. Unlike typical forum classified ad services, the new market has a closed loop system of feedback that permits buyers and sellers to rate one another and provide comments regarding transactions in which they have participated. Any member may view another member’s detailed ratings page, which will give a full recount of that member’s activity in the market. In addition, buyers may opt to become “AVB” or “Address Verified Buyers.” Sellers who post auctions or ads may choose to only accept responses from AVB-certified buyers, giving them an extra measure of comfort in their transactions. In order to sell or buy in the market, every member must provide full contact information, further ensuring transaction accountability. “People are serious about buying and selling in our hobby and our system caters to their need for a professionally designed and managed market environment that is easy to use.

Turbo Boosted Classifieds

The classified ad services currently hosted on RC Universe and RC Airport will be merged into the new market section, giving users a single marketplace for both classified and auction listings. Users of the classified marketplace on both sites will notice dramatic improvements in their services along with greater transaction security. The classified service will benefit from all the search, category and ProductLink technology built into the auction.

Syndicated Network

The entire RCUniverse Marketplace is linked to the RCMarket Ad Network. This innovative software network, originally developed by KEI, currently provides classified ad services to more than 20 R/C-oriented partner Websites such as the AMA, IMAC, RC Car Magazine, Wildhobbies.com, RCCars.com, Flying Models Magazine, Rotory Magazine and many others. Each partner site ties into the central marketplace so that a member of any partner site (including RCUniverse) who posts a listing will have that listing instantly displayed on all partner sites. With the advent of the new market system, all partners will now have auction services on their sites.

14-Day Free-4-All

During the first 14 days of the auction, members of RC Universe will be able to post listings with no insertion fee. During the first 30 days, RC Universe will be awarding prizes to the 15 individuals and 15 retail sellers with the most closed auctions during the contest period.

Innovation & Creativity

VLM and KEI not only bring their members together, but they also combine two of the most creative and innovative minds in R/C toward a single goal. Michael Kranitz will serve as the company’s CEO while Marc Vigod assumes the role of President and COO. Both leaders’ backgrounds will serve the site and the R/C community well.

Kranitz is an Internet veteran bolstered by 12 years of practice as a corporate reorganization and bankruptcy lawyer. In 1997, Kranitz left the practice of law to create a network of auto-related Websites. By early 1999, his partners included, Motor Trend, Excite, Bank One and CBS. Kranitz authored the book, Look Before You Lease: Secrets to Smart Vehicle Leasing and LeaseWizard® software, both of which continue to lead the market. In late 1998, KEI’s auto-related Websites were acquired by Navidec, Inc. (Nasdaq: NVDC) of Denver, Colorado. While at Navidec, Kranitz designed the business model for, and became president of, DriveOff.com, the first 100% online automobile buying and leasing service. In the course of one year, Kranitz’s company forged an association of 3,200 Internet-integrated automobile dealers nationwide. DriveOff.com was later acquired by Microsoft’s Carpoint (now MSN Autos). After serving as Vice President of Carpoint, Kranitz hunkered down to create what is now RCAirport.com. As a 28-year R/C airplane buff, Kranitz says he was “eager to do something I am passionate about.” KEI launched RCAirport in March 2002 and quickly followed with the RCMarket syndicated classified network. KEI acquired RCOnline.com in April 2002, but has since shut the site down and directed its traffic to RCAirport, where membership has reached nearly 18,000 in one year. A newly developing helicopter fanatic and long-time electric flight enthusiast, Kranitz is now the proud papa of a Graupner .60-sized, electric Agusta 109A.

VLM’s Marc Vigod brought RCUniverse into existence a little more than 14 months ago. In that time, he has built the largest R/C discussion forum in the history of the Web, accumulating nearly 40,000 members over its brief history. Vigod is also no stranger to the Internet. At the age of 29 Vigod developed PriceWars.com, a ground-breaking price comparison service, and sold it to a well-known venture capital firm in 1999. After the sale of Pricewars.com, Vigod focused his efforts on VLM, which provided hosting and development as well as Internet consulting services. In December 2001, Vigod devoted his full attention to RCU. Prior to VLM, Vigod operated an international import company. A self-taught developer, Vigod has implemented virtually all of the programming enhancements and services currently in use on RCUniverse. “Nobody told me there were only 24 hours in each day, “ muses Vigod.

The new RC Universe team will also include Erick Royer, Director of Ad Sales and Business Development, Larry Eddy, Directory of Public Relations, Andrea Lachter, CPA as its Controller, Nathan Maat, Community Director and Herb Simpson, Head Product Marshal.

For more information on the merger, users should browse to a custom Q/A file at http://www.rcairport.com/merger/

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About 24-7 RC, LLC

24-7 RC is owned by Kranitz Enterprises, Inc. and VLM, Inc. Its objective is to bring new and innovative services to members of the radio control hobby with superior technology and complete ease of use.

About Kranitz Enterprises, Inc.

Kranitz Enterprises has been developing consumer-based software and Internet sites since 1992. It owns and operates RCAirport.com, RCMarket.com, RCClubs.com, RCPilot.com, LeaseWizard.com, CarWizard.com and LeaseSource.com.

About VLM, Inc.

VLM, Inc. has been providing Internet-based services and consulting since 1996. It currently owns and operates RCUniverse.com.

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