Dear Investor:
The Stewart Report, A Prestigious
West Coast Newsletter, Initiates Coverage Of The Neptune Society And Issues
A 'Strong Buy' Press Release
The Stewart Report is a special situations financial newsletter that
has been the focus of feature stories in Barron's, Money magazine, The
New York Times, Investor's Business Daily, Entrepreneur magazine and Fortune.
"We are excited to have garnered the attention of The Stewart Report."
Marco Markin
CEO & President of the Neptune Society
FOR IMMEDIATE RELEASE
COMPANY CONTACT:
Gary R. Loffredo, Director
(800) 535-7935
Neptune Society Leads As Death-Care Stocks Buck Market
Trend
DANA POINT, Calif., July 24 /PRNewswire/ -- In recent weeks,
one of the market's most progressive sectors has been the death-care industry
with national mortuary chains such as Service Corp International, Carriage
Services and Stewart Enterprises, Inc. having risen to within a few points
of their 52-week highs.
However, it's The Neptune Society (OTC Bulletin Board: NTUN),
the nation's only cremation specialist and the only death-care provider
with a brand name familiar to consumers nationwide that seems to be at
the forefront of the latest move, allowing it to buck today's downdrafts
in both the Dow Jones Industrial and Nasdaq Composite averages. Neptune's
price resiliency and strong volume have been attributed by some observers
to The Stewart Report, a West Coast research letter that initiated coverage
on the stock this week. Moreover, Stewart believes expanding awareness
of Neptune's intention to list on a senior exchange will carry the stock
higher still.
The Stewart Report's analysis of The Neptune Society highlights its
niche opportunity in the marketing of pre-need cremation services, payments
for which have generated a rapidly growing company trust fund that presently
totals more than $40 million. Analyst J. David Stewart says the trust fund
which has already endowed the Neptune network with a 13-year backlog of
business in the midst of its best operating year ever, will likely grow
to $99 million by year-end 2005. Stewart also sees a string of steadily
improving operational years, thanks to a diverse set of socio-economic
factors presently coming into play. These include the aging baby boomer
population, the expanding geographical range of American families, new
consumer attitudes towards land usage as it relates to traditional casket
funerals, and an increasing cost consciousness in death-care planning.
Safe Harbor
This press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Readers/Investors
are cautioned that the forward-looking statements are inherently uncertain,
including statements related to the Company's business strategy, success
of its acquisitions, its ability to implement its current business and
growth strategies, the ability to implement acquisitions and start up offices
into its existing operations, its ability to obtain sufficient financing
to fund its proposed growth, the Company's ability to develop its brand
name and effectively market its services and the Company's expectations
for future success. Actual performance and results of operations
may differ materially from those projected or suggested. The forward-looking
statements contained herein represent the Company's judgment as of the
date of this release, and the Company cautions the reader not to place
undue reliance on such statements. These forward-looking statements
should not be reprinted, reiterated nor considered an inducement for investment.
About The Neptune Society
Headquartered in Burbank, CA., The Neptune Society Inc. is one of North
America's largest cremation specialists, and is the only publicly traded
company dealing solely in cremation services. The Neptune Society, operating
for nearly three decades with locations in California, Florida, New York,
Washington, Iowa, Oregon and Arizona has provided thousands of cremation
services and currently has close to 60,000 active contracts and nearly
$40 million in trust in its unique Pre-Need program. The Neptune Society's
goal is to provide a simple, dignified and economic alternative to the
traditional funeral burial service system.
###
Highlights
Of The Stewart Report
***
Key Investment Considerations ***
The Neptune Society® is positioned for the market maturation
of the "Baby Boomers" and the "Graying of America."
A compelling value proposition for cremation is its simple; the average
funeral runs from $10-15,000 and the average cremation runs $1-3,000. That's
a $9-12,000 spread.
The $15 billion death-care industry has recently survived a five-year
shake-out by attrition, acquisition, or merger that has left the U.S. with
only four publicly traded chains and 22,000 independent mortuary operators.
The Neptune Society is the only public "pure play" in the cremation
segment of the death-care services industry and the company benefits from
extensive goodwill from its reputation and high visibility brand name built
during its 27-year history.
The Neptune Society received a 'Strong Buy' recommendation from
J. David Stewart of The Stewart Report with the stock under $8 and a 6-12
month target price of $17.50.
The Neptune Society has 18 locations in 7 states with strategic
growth initiatives to add to those numbers in 2001 as they expand to meet
demographic concentrations. The company also has a dedicated "call
center" with 20 telemarketers in Tempe, AZ.
The Neptune Trust Fund to facilitate 60,000 'Pre-Need' contracts sold
and not fulfilled approximately $40 million strong. It is
estimated the Trust will reach $99 million by 2005.
"The Neptune Society offers the industry's best price leverage
due to its petite market cap of less than $50 million."
To date, 2001 is breaking all company records with estimated
gross sales for the year at $18 million, new 'Pre-Need' contract sales
estimated at 10,000, and 'At-Need' sales and administrative fees coming
from an estimated 7,000 fulfillments.
Recent Events
Of The
Neptune Society
Cremation service revenues were $2,242,000 for the three months that
ended March 31, 2001 compared to $1,328,000 in 2000, nearly double the
same period last year.
The Neptune Society provided 6,639 cremations in 2000 and has already
provided 5,098 in the first five months of 2001, that is double the
same period last year with a very conservative projected total for
2001 to be approximately 7,400.
The Neptune Society's new management team, assembled since 1999, has
substantial industry expertise. The management has implemented a multi-pronged
marketing strategy focused on selling "Pre-Need" cremation plans. Including
direct sales over their Web site, the strategy also includes direct mail
of approximately six million pieces being sent in 2001 and the support
of five sales managers with approximately 200 independent, commission-only
sales representatives providing follow-up.
The Neptune Society recently received an 'Aggressive Buy' recommendation
from Banyan Capital Markets with a target price of $8.00.
The company has a guaranteed 13-year business backlog.
Due to the nature of the company's business, it is virtually recession-proof.
