Firebox signs equity deal with Channel 5

Gadget retailer Firebox has signed a £850,000

equity-for-airtime deal with Channel 5 broadcasting.

The deal, which will give Channel 5 a small minority stake in the

company, marks the first TV advertising undertaken by Firebox since its

launch in 1999.

Channel 5 will air 30-second ads themed around gadgets that have yet to

be invented.

Firebox has also extended its high-street presence by signing a deal

with Warner Brother Studio stores, which will give Firebox a concession

in its retail units throughout the country. Warner Brother Studios also

has concessions from ice-cream makers Ben and Jerry's and coffee shop

Starbucks.

Firebox will be given a branded area in the stores, which will feature

30 of its best-selling products and customers will be allowed to play

with the products.

"This is an important deal for us and further reinforces our ambitions

as a multi-channel retailer," said Michael Smith, chief executive of

Firebox.

"We are in discussion with a few other major UK high-street chains and

see this as a successful direction."

Firebox broke even during the third quarter of 2001 and is scheduled to

turn a profit for the full calendar year.