24/7 Media Clarifies Financial Position.Business Editors NEW YORK--(BUSINESS WIRE)--June 19, 2000 In response to the article "Up In Smoke" appearing in the June June: see month. 19, 2000 edition of Barron's Magazine Barron's magazine is an American weekly newspaper covering U.S. financial information, market developments, and relevant statistics. Each issue provides a wrap-up of the previous week's market activity, news reports, and an outlook on the week to come. , 24/7 Media (Nasdaq:TFSM) would like to clarify its financial position. 24/7 Media Inc. is confident that it currently has sufficient liquidity to carry the Company to break-even on a cash basis without the need to raise additional capital. In fact, pro-forma cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has exceed $200 Million. The Facts 24/7 Media's current total cash and cash equivalents are approximately $25 million. In addition, Exactis.com (an acquisition scheduled to close on June 27, 2000) will provide additional cash and cash equivalents of approximately $40 million. Finally, 24/7 Media owns 5.7 million shares of chinadotcom corporation (NASDAQ: CHINA) and 4.3 million shares of Network Commerce (NASDAQ: NWKC) which equals a combined current market value of approximately $140 million. 24/7 Media has the ability to sell such securities in the public market subject only to limitations imposed by Rule 144 and quarterly window periods. Getting to Cash Break-Even Even at today's depressed market Depressed market Market in which supply overwhelms demand, leading to weak and lower prices. prices, the cash and marketable securities we have on our balance sheet are more than sufficient to carry us past the point at which most analysts project we will achieve break-even on a cash basis, which is currently the first half of 2002. We have identified and will continue to seek opportunities to manage and reduce costs in our organization. This, coupled with continued strong business growth, we believe could help to accelerate cash-flow break even into the latter part of 2001. We are confident that we will have sufficient liquidity to carry us to cash positive. Regards, David J David J. Haskins (b. April 24, 1957, in Northampton, England) is a British alternative rock musician. He was the bassist for the seminal gothic rock band Bauhaus. Life and work . Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. , President and Chief Executive Officer 24/7 Media, Inc. C. Andrew Johns, Chief Financial Officer 24/7 Media, Inc. |
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