USN Corporation Doubles Sales in FY 2006

USN Corporation Doubles Sales in FY 2006

Luxury Television Shopping Channel Expands Programming to 30 Million Homes

LOS ANGELES, July 12 /PRNewswire-FirstCall/ -- USN Corporation (BULLETIN BOARD: USNR) has announced its 2006 results, showing sales in fiscal year 2006 topping $27 million, a 108% increase over sales of $13 million in fiscal year 2005. Most of the increase was due to the television shopping channel expanding its broadcasting to a 24/7 schedule.

The company reported a net loss of $14.4 million during a year of rebuilding and expansion. Many of the expenses incurred during the year were one-time expenses, and the company CEO was encouraged by recent progress.

"We have successfully overcome a number of challenges in the past year," stated Mark J. Miller, CEO of USN. "We now broadcast to over 30 million homes 24 hours a day, seven days a week. Our margins have been improving and we have become more efficient with our sourcing. We have gone to a shipping model that has resulted in reduced inventory carrying costs and shrinkage. We have built out our infrastructure to handle anticipated future growth, and will be launching a revamped shopping website that shows great promise."

While initially focusing on consumer items such as jewelry, coins and watches, the company has been diversifying into new lines. USN is expanding into designer brand items, including handbags, shoes and sunglasses as well as luxury items such as crystal and art pieces. The company enjoys a loyal customer base, with more than 30% of its customers repeat buyers.

Some of the company's upcoming initiatives include being carried on IPTV, allowing viewers to buy items with the click of a remote, the introduction of a digital gift card that will let people "gift" future luxury purchases from the network and website, and an arrangement with a financial institution that will allow USN to offer a "multi-pay" option enabling shoppers to complete their purchases over a two to eight month period without incurring additional fees.

"We are committed to adding a new dimension to the television shopping experience," concluded Miller. "We offer tremendous quality, unique items, great values and entertaining hosted shows. Our recent growth has been driven primarily by word of mouth. We are looking forward to launching new promotions to drive our sales growth."

ABOUT USN CORP.

USN's wholly owned Ultimate Shopping Network is quickly becoming the luxury brand in television shopping. USN has positioned itself as television shopping's version of high-end retailing with a dedication to service, quality, integrity and luxury. Today, the Ultimate Shopping Network is broadcast to more than 30 million aggregated U.S. households on DIRECTV Channel 345, Dish Network 223, and various cable and broadcast outlets. The company also has an Internet shopping site, http://www.shopusn.com/, which offers customers many of the same upscale products seen by viewers on the network at very competitive price points.

The statements included in this press release concerning anticipated or expected future revenue or growth or expressions of future goals or objectives, including statements regarding whether current plans to grow and strengthen the company's existing network will be implemented or accomplished, constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. All forward-looking statements in this release are based upon market information available to USN Corporation on the date of this release. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include the availability of funding for current and future operations, as well as others discussed in USN Corporation's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. USN Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations:
Chris Rosgen - Capital Market Relations
949.481.9739

Source: USN Corporation

CONTACT: Media Relations, Katy Saeger, ksaeger@5wpr.com, or Peter
Epstein, pepstein@5wpr.com, both of 5W Public Relations, +1-310-566-7030; or
Investor Relations, Chris Rosgen of Capital Market Relations, +1-949-481-9739,
crosgen@capitalmarketrelations.com, all for USN Corporation

Web site: http://www.shopusn.com/

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