Retail Veterans Plot Vigorous "Rebirth" For Computer Renaissance

Unique Chain Capitalizes on Demand for Buy/Trade/Sell Model in Computer Retail Industry

LAKELAND, FLORIDA (Friday, March 22, 2002) - Although the Renaissance Period officially ended four centuries ago in Europe, it's just getting started here in the United States - at least within the retail computer franchise industry.

With two business savvy retail executives at the helm, Computer Renaissance - a national franchise that buys, sells and trades top quality name brand, reliable new and refurbished computers - is in the midst of a triumphant rebirth. Known to industry insiders as "the renaissance of Computer Renaissance," the revival is successfully elevating the 120-store chain to national stature as the retail computer solution that makes technology less stressful for families and small businesses. Its unique buy/trade/sell model is quickly becoming one of the hottest concepts in franchising today.

Originally founded in 1988 on the basis of buying and selling used PC products to business clients, today the chain thrives in a technology-driven society with three distinct offerings: used/refurbished computer products; do-it yourself components; and service.

Grow Biz International (now Winmark Corporation) acquired the Computer Renaissance concept in 1993 with the vision of a national retail chain, growing it to more than 200 stores. However, in the next several years, the growth spurt declined as Grow Biz focused on its other retail concepts. So in August 2000, Jack Hollis, an ambitious, multi-unit Computer Renaissance operator in Lakeland, Fla., purchased the concept from Grow Biz, with the goal of improving the refurbished focus and expanding the retail computer franchise into a strong national presence.

"Computer Renaissance is a diamond in the rough that is about to explode across the globe," said Hollis, Chairman and CEO of Hollis Technologies, who still operates four franchise stores through a subsidiary company, CompRen Inc. "I have put together a strong team to implement the plan and to market the Computer Renaissance brand name throughout the United States and Canada," said Hollis, referring to his handpicked president, seasoned retail industry veteran Matt Kelton. "Our increasing franchise network is dedicated to our continued growth and success. In addition to our focus in the United States, we have received interest in opening stores from Mexico, to Korea, Japan, Portugal, the UK, and more."

Entrepreneurial DNA

Both Hollis and Kelton, are third-generation in families with entrepreneurial/retail notoriety. Hollis' grandfather was part owner of the original grocery store chain that later became Publix Super Markets, the largest and fastest-growing employee-owned supermarket chain in the United States. Kelton's grandfather founded Curtis Mathes, the Texas-based consumer electronics products retail giant, which also developed ColorTyme Rent-To-Own, the oldest and largest Rent-To-Own\Rental Purchase franchisor in the United States.

"We both have the retail instinct in our blood," said Hollis, who retired from Publix in 1998 to open his first Computer Renaissance store. "Our expertise and strategic vision, experience in the Computer Renaissance franchise system and the value of a solid concept all point to a bright future for this franchise."

One of the pair's first moves was to make the franchise opportunity more affordable for various income levels by cutting total startup costs to as little as $63,000 and beefing up options to help franchisees secure financing. In addition to in-store training, regular field visits and marketing and advertising support, Computer Renaissance franchisees enjoy the advantages of localized web sites and a state-of-the art Intranet system that allows them to communicate with peers, suppliers and the corporate office 24/7. With its nationwide buying power, Computer Renaissance has developed strategic alliances with major computer suppliers. Computer Renaissance also recently started a satellite store concept to help current franchisees expand in smaller markets that wouldn't support a full-fledged store.

Competitors Who?

By far the most significant advantage for Computer Renaissance franchisees is the opportunity to be a part of a system that thrives in today's economy with no direct competition. Over the next seven years, experts predict that more than 500 million computers worldwide will be "retired." National leasing organizations and major manufacturers are coming to Computer Renaissance as a national distribution outlet. Obtaining its products at substantially less than the cost of new computers, Computer Renaissance franchisees have the potential to enjoy dramatically higher profit margins, while consumers benefit from brand name, factory refurbished equipment for a fraction of the original retail cost.

"We are the only chain to focus on refurbished computers and one-on-one service in a personal, friendly environment," Hollis said. "The closest we have to a direct competitor is the Internet, where people can go through online auctions to find a used product. However, with that option the customer blindly buys from a stranger and without the confidence of buying from a chain with a nationwide warranty program."

Eternal Demand

Computer Renaissance's buy/sell/trade concept is particularly attractive for small businesses, families, singles, seniors and students - virtually anybody seeking a bargain-priced quality computer.

"There's a huge demand for this concept," Hollis remarked. "When I tell people they can buy a monitor for $29, their jaws just drop. The trend that used to require a continual upgrading of computer technology is no longer necessary. A 600 Mhz computer this year will still do the job for most computer users next year. Except for gaming and videographics, you could use a 500 Mhz machine for several years and be very happy.. Companies realize that there's no need to spend exorbitant amounts of money on a 1.5 Ghz machine for doing basic word processing and checking e-mail. That's overkill. You don't need a Ferrari to drive two miles to the store every day."

Computer Renaissance prides itself on customer service that is unmatched by larger department or consumer electronics stores.

"Our customer service is head and shoulders over theirs," Kelton said. "The Big Box Electronics stores typically hire young kids on hourly wages. Our store owners and technicians have a vested interest and a true love for the business," said Kelton, who further noted that many of Computer Renaissance franchisees have a retail or management background, not technology. "With A+ Certified service technicians on staff at almost every store, we can normally fix somebody's computer and have it back to them within two days."

"We have been around for 14 years and have outlasted everything from the catalog showrooms, to the mega electronics stores, to the computer superstores, and we are still standing," he said. "Computer Renaissance has a proven model that works and focuses on only the highest margin sectors of the computer industry. We let the Big Box stores focus on the low margin products."

Computer Renaissance is the only national franchise that buys, trades and sells used, refurbished and new computers, creating sensible, powerful solutions that make technology less stressful for families and small businesses. Computer Renaissance currently operates 120 stores in 33 states, with 30 more under development.

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