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Drj jan2012[1]

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  • 1. NYSE Amex: DRJ Corporate Presentation January 2012
  • 2. Important Cautions Regarding Forward-Looking Statements Statements contained in this presentation, which are not historical facts, are forward-looking statements. The forward-looking statements in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made herein contain a number of risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, specific factors impacting the company’s business including increased competition; the ability of the company to expand its operations and attract and retain qualified personnel, the uncertainty of consumer’s desires for sports and celebrity memorabilia; the availability of product; availability of financing; and general economic conditions. This presentation is © 2010 and 2011 Dreams, Inc. – All Rights Reserved
  • 3. Key Statistics: DRJ (NYSE Amex) ¹Net income before non-controlling interest, interest, net, provision for income tax, depreciation and amortization, non-controlling interest, restructuring and severance costs, impairment charges, non-cash stock option expense, certain legal expenses, settlements and related costs, other income and other one-time charges and credits. Trading Data (@ Jan 12, 2012) Stock Price $2.18 52 Week Low/High $1.66/$3.18 Avg. Daily Vol. (100 day) 29,420 Shares Outstanding 44.7M Public Float, est. 67% Institutional Holdings 29% Insider Holdings 33% Valuation Measures Market Cap $97.4M Enterprise Value $122.1M EV/Revenue (ttm) 1.0x EV/EBITDA (ttm) 27.8x Financial Highlights (@ Sept 30, 2011) Total Revenue (ttm) $127.2M Adj. EBITDA¹ (ttm) 4.4M EPS (ttm) $0.01 Cash & Equivalents (mrq) $0.2M Total Assets (mrq) $77.3M Total Debt (mrq) $25.1M Total Liabilities (mrq) $45.8M Total Equity (mrq) $31.5M
  • 4. Who We Are…
    • Dreams is a technology-driven, vertically-integrated, online retailer
    • Focused on sports licensed product & memorabilia marketplace
    • 77 e-commerce sites & flagship brand – www.FansEdge.com
    • 10 consecutive years of high double-digit e-commerce growth
  • 5. The Retail Marketplace is Increasingly Moving Online ¹Forrester Research, Feb 2011 In 2015, the web will account for 11% of all retail sales¹
  • 6. Revenue Drivers
    • Robust E-Commerce Platform:
      • FansEdge.com site
      • Web syndication business
    44% CAGR – 2006 - 2010 ¹2011 guidance issued and effective March 31, 2011.
  • 7. FansEdge.com - Flagship Brand
    • Items from 200+ teams & 1,300+ different athletes
    • Sell 200,000+ SKU’s
    • $50+M of revenues in 2010 (up 19%)
    • 10 th fastest-growing e-commerce website in the retail chain category
    • 40 th fastest-growing e-retailer overall
  • 8. Web Syndication - Licensed Sports Merchandise
    • Dreams operates e-commerce websites for teams in NFL, NBA, MLS & JC Penney, Majestic Athletic, NBC Sports & others
    • Utilizes full network of digital capabilities
      • Order fulfillment
      • Call center facilities
    • Operating 77 sites
    • $34M of revenues in 2010 (up 100%)
  • 9. Web Syndication Revenues 31 clients 70 clients @ Sep 30, 2011 ¹2011 guidance issued and effective only on March 31, 2011. 53% Projected Growth
  • 10. Multi-Channel Retailing Strategy
    • We leverage our internet presence through multiple retail channels to create a diversified revenue stream:
    Diversified Revenue Stream
  • 11. Interactive Kiosk Drives Sales Within Brick & Mortar Locations
    • Kiosks are 50” HD Flat Screens with touch-screen technology
    • 300,000+ SKU’s
    • Customers can have items shipped to the store or shipped to their home
    • Alternative to long lines during holiday season
    • When properly executed, kiosks have increased retail sales up to 20% per month
  • 12. Manufacturing & Distribution
    • 207,000 sq. ft. retail headquarters in Northbrook, IL
      • 120,000 sq. ft. satellite fulfillment center – Elk Grove, IL
    • 50,000 sq. ft. office, manufacturing & warehousing in Sunrise, Florida
    • 12,000 sq. ft. warehouse facility in Las Vegas, NV
    • Distribution network enables prompt delivery service - shipped same day order is received
  • 13. Strategic Acquisitions - 2010
    • Collegiate Marketing Services
      • Included retail contract for stadium & venue sales at Univ. of Texas
      • And apparel manufacturing, screen-printing & embroidery operation
    • The Comet Clothing Company
      • Owns rights to Zubaz® brand
      • Now have ability to manufacture apparel for e-commerce partners within the organization
      • Improves overall gross margins
  • 14. Pro Forma Sales - Quarter/Quarter ¹Q4 2011 represents projected sales.
  • 15. Annual Revenue: E-Commerce vs. Total Revenue ¹2011 guidance issued and effective March 31, 2011. $82.0M $85.5M $111.4 $140.0M (proj.)
  • 16. Dreams Key Takeaways
    • Industry-proven, proprietary technology positioned in large & growing online market
    • Vertical integration of product leading to gross margin expansion
    • High inventory turnover through multiple distribution channels
    • Strategic acquisitions leverage strong brand
    • Q3’11 revenues up 23%; e-commerce revenues up 39%
  • 17. Contact Us NYSE Amex: DRJ www.DreamsCorp.com Investor Relations Liolios Group Scott Liolios or Cody Slach Tel 949.574.3860 [email_address] Dreams, Inc. 2 South University Drive Suite 325 Plantation, Fl 33324 954-377-0002

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