News release

Seagull's Efforts Netting Sales

Economic Development and Tourism (to July 1999)

Seagull, a Pugwash manufacturer of giftware, is launching an aggressive marketing push for its new line of products.

The company is expanding its sales efforts in the United States, Ontario and Western Canada, with financial help from the Nova Scotia government.

Don Sheehan, the company's chief operating officer, says the early results are promising.

"We've just come back from Atlanta, the biggest giftware show in North America," said Mr. Sheehan. "And our sales are up 40 per cent from last year. The retailers and distributors are very enthusiastic about our new lines."

Earlier this year, Seagull announced it had negotiated international licensing agreements with PEANUTS, Disney Consumer products and Royal Doulton. The three new agreements entitle Seagull to manufacture new product lines and to market PEANUTS products in North America and Japan, Mickey & Co. products in Canada, and a special pewter line of Royal Doulton products in Canada (through Royal Doulton stores) and Britain.

"These deals are an indication of the diversified business opportunities we're pursuing," said Mr. Sheehan.

Seagull's new marketing effort is being helped by a $3-million loan guarantee from the provincial government. The province is also investing $1.5 million in equity --matching Seagull's own equity investment.

"We're encouraged by Seagull's new product line and its aggressive marketing plan," said Manning MacDonald, Minister of Economic Development and Tourism. "This company has been an important employer and business leader in Cumberland County for two decades. We want to see the company continue to grow."

Recent investments in Seagull's facility and changes to its production process are providing behind-the-scenes benefits. A new team-based system replaces an outdated process in which employees had to run products back and forth among various workstations.

"The results of these changes are already showing up," said Mr. Sheehan. "We're now able to respond much more quickly and effectively to new product demand."

Added Mr. Sheehan: "We believe the time is right to consolidate the company's strong base and to continue to make the positive changes required to capitalize on the success of our first 20 years. Strategic expansion and well-managed diversification -- these key objectives are at the core of the new Seagull."

Seagull is the largest giftware manufacturer in Canada, selling premium gifts and home accent pieces throughout North America and exporting to 23 countries worldwide from its home office in Pugwash. This year marks Seagull's 20th year in the giftware industry.