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April 25, 1994


By CBR Staff Writer

MBL International, which holds franchise rights to ComputerLand in Russia is to invest $5m in its network of stores during 1994. MBL owner Michael Tseytin says the money will be used to get more products onto the shelves of regional dealers and to give them access to a broader range of products. Up until now we have been growing the network horizontally – trying to expand into new geographical areas. Now we are looking to achieve more vertical growth in these regional centres, he says. Last year MBL International signed a 10-year agreement with ComputerLand Europe giving the US company sole rights to the ComputerLand name in the whole of the former Soviet Union. In April 1993 MBL bought the rights to be a master franchiser in the region. This means MBL has the full right to grant its own franchises. Today all of the 17 regional ComputerLand locations are full franchises. Regional centres have the freedom to set their own budgets and have bilateral credit agreements with the ComputerLand office in Moscow. The MBL ComputerLand Soviet operation was established in March 1989; the distribution arm of ComputerLand is now owned by Merisel Inc.

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