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Tyres at competitively low prices

Delticom AG expands

Hanover, 12.10.2000. Delticom AG headquartered in Hanover is the first professional internet tyre dealer and offers its customers competitively low prices throughout Germany - plans for expansion into other countries are being made. In the second half of 1999 after the company was founded, turnover amounted to DM 1.8 million, for the current year DM 10 million is expectedand for 2001 more than DM 30 million are planned. Delticom AG is currently earning profit.

The company was founded on the 2nd of July 1999 by two former sales managers of the tyre manufacturer Continental AG, Hanover, Rainer Binder (42) and Dr. Andreas Prüfer (37), that lead the company, as well as internet expert Timon Samusch (31). The initial capital invested was DM 98.000. After the Deutsche Venture Capital Gesellschaft (DVC), Frankfurt/Berlin, invested in a 10% stake, its own capital runs to up to DM 6 million. Delticom was valued to be worth DM 60 millionin the summer of 2000.

The company currently employs 12 people. In January 2001 the growing tyre dealer will hire further employees, bringing the total to 17.

At www.ReifenDirekt.de, vehicle owners can buy tyres at lower prices. Binder and Pruefer explain the lower pricing is due to high volumes, worldwide supliers and many years of experience in the tyre business, in addition to low fixed costs and very short decision time.

Delticom offers a complete tyre catalogue, rims and pre-mounted wheels including advice and references to tyre fitters. The customer is provided with a product description and possible alternatives. "We're amazon.com for tyres and want to prove that it is possible to sell products which require a lot of consulting via the internet", said Andreas Pruefer, Managing Director. Test results from leading automobile magazins are part of the customer service, as well as direct delivery to any address, such as the customer's home address, a car dealer, or a service station. Delticom AG co-operates with 450 installation service partners throughout Germany and is continuously expanding this network. The interest inthis co-operation is high, because Delticom links partners with customers free of any further charges. "Customers profit from our lower prices, comfortable and fast service. Transport costs are already included in our internet-listed prices."

Pruefer und Binder underlined the fact that the DVC investment in Delticom AG is "a great sign of trust. We are now preparing to expand the business in preparation for a later IPO - the date still being open".

Delticom AG
Brühlstr. 11
30169 Hannover
Tel. (+49 (0)511-93634960) - 14 Ct. pro Min.
Fax. +49 (0)511 87989071
URL: http://www.delti.com
E-Mail: info@delti.com