WEST CALDWELL and PARSIPPANY, N.J. — (BUSINESS WIRE) Feb. 14, 2000
Greg Manning Auctions, Inc. (NASDAQ: GMAI - news) announced today that it has signed a binding letter agreement with Tristar Products, Inc. to create and mass-market high interest collectibles targeted to the beginning collector. The business will be operated through a wholly owned subsidiary of GMAI to be known as Greg Manning Direct, Inc. (GMD). GMAI said it expects calendar year 2000 sales of approximately $100 million for the venture, with net before taxes profit in excess of $8 million.

The Company also said that GMD will enter into an agreement with Tristar Products, Inc., of Parsippany, NJ, one of the nation's leading privately held consumer product marketing companies, to utilize Tristar's expertise in mass-marketing consumer products. GMD will also utilize Tristar's infrastructure and fulfillment capabilities.

Under the agreement, Tristar will bear all costs and expenses with respect to product creation, inventory and advertising. GMAI will issue 500,000 shares of GMAI stock which will be distributed to Tristar pursuant to an earn-out formula. GMAI will be responsible for product sourcing, as well as new product development with a variety of collectibles, including coins, stamps, sports cards and memorabilia, movie posters, comics, Hollywood and Rock 'n Roll memorabilia, and fine art. The GMAI/Tristar/GMD transaction will be effected through an acquisition of stock by GMAI. Further financial details were not disclosed.

Greg Manning Direct will utilize the Internet, television commercials, print media, TV shopping channels and major retail chains to sell and distribute its collectible products. Sales will begin in North America and are expected to soon expand to China, Europe, Latin America and the rest of the world.

Sales operations have already commenced with the popular 50 State US Quarter Map and coin set, which is expected to generate over $15 million in revenue for Greg Manning Direct during the first calendar quarter of 2000. Future products will likely include Disney stamp offerings, other coin offerings, and sports memorabilia offerings.

Tristar Products is one of the nation's leading privately held consumer product marketing companies. Its principals include Albert Boscov and Edwin Lakin, Chairman and President of the $1 billion department store chain, Boscov's, headquartered in Reading, Pennsylvania, and Keith Mirchandani, one of the nation's leading direct response TV marketers.

Greg Manning, Chairman, Chief Executive Officer and President of GMAI commented, ``I have known Keith Mirchandani, CEO of Tristar, for many years. Recently Keith and I discussed a collaboration with the ultimate goal of forming a major global collectibles marketing company, utilizing the Internet as well as traditional sales platforms. Our first product, a 50 State Quarter Map, coin set and continuity program, has been a huge success in its initial promotional stage. GMAI's expertise and ability to source product and Tristar's very successful track record in the consumer marketing field make a natural alliance and a company that goes directly to the major leagues without the usual growing pains.''

He continued, ``Collectibles intended for the beginning collector is an area in which GMAI has experience, and has wanted to get back into. For 12 years a GMAI subsidiary, International Postal Marketing Company, managed an educational philatelic continuity program for Reader's Digest, which, over that period of time, had hundreds of thousands of subscribers. GMAI has also represented over 40 nations selling their stamps and coins at issue prices in North America, so we have considerable background in mass marketing collectible products. Collectibles are one of the hottest selling mass-market items in the world today and, with this new alliance, we intend to take full advantage of this opportunity. We also intend to continue to market to these new collectors, and to work with them and educate them as their collections and collecting passion grow so that they become customers of our higher end products.''

Keith Mirchandani, CEO of Tristar, added, ``We have watched GMAI grow in stature in the collectibles field over many years, and we felt this collaboration would greatly benefit both companies. Our first product, the 50 State Coin Set and Map, demonstrates exactly how well this collaboration will work. Spectrum Numismatics, which GMAI is purchasing, has already sourced 600,000 sets of state coins for our venture. Spectrum's superb reputation as national buyers of coins, from million dollar rarities to newly issued quarters, enhances our ability to acquire the quantities we need.'' He continued, ``In addition, GMAI's Internet experience and the Collector's Mall at their www.gregmanning.com website, plus their new branded position on Amazon.com (NASDAQ:AMZN - news), will open new avenues to sell product. We are also co-developing products for Europe and China and expect to launch new worldwide sites.''