C-bridge and BEKK Terminate Acquisition Agreement.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 5, 2001

C-bridge Internet Solutions, Inc. (TM)(NASDAQ: CBIS) and BEKK Consulting A/S, today announced that the agreement for C-bridge to acquire BEKK, a Norwegian e-business professional services firm, has been terminated.

"Certain approvals from the Norwegian tax ministry were not obtained as required," said Joseph M. Bellini, C-bridge president and CEO. "Based on slowing growth in the European market and slower than anticipated absorption of wireless technology, we have concluded that it is not in the best interest of our shareholders to negotiate further in an attempt to gain these tax approvals."

As structured, the original deal provided that C-bridge's Norwegian subsidiary, C-bridge Internet Solutions Norway A/S, would purchase 100% of BEKK's outstanding capital stock, held exclusively by BEKK management and employees. The total cost at the time of the acquisition (including amounts paid to BEKK option holders in satisfaction of their options) was anticipated to be $13,000,000, with $3,911,029 to be paid in cash and the balance to be paid in shares of C-bridge common stock. The agreement also provided for an earn-out, which would have required C-bridge to pay an additional amount of up to $4,260,000 on January 31, 2002, depending on the extent to which BEKK met or exceeded agreed upon revenue and profit targets. The total consideration (cash and stock), including the maximum earn-out payment, which could have been paid in the transaction, was $17,260,000.

The cancellation of the BEKK deal significantly increases C-bridge's cash position, adding almost $4MM to the company's forward cash position. During Q400 and the early part of Q101, in anticipation of acquiring the BEKK resources, C-bridge Europe significantly slowed its Scandinavian hiring. C-bridge Europe had been forecasting revenues of $1.5MM for Q1, assuming the BEKK deal would drive additional forecast visibility. The European revenue forecast has been adjusted accordingly and is now set at $1MM for Q101. This brings the overall C-bridge Q1 revenue forecast down from $23.6MM to $23.1MM for Q101. The impact to first quarter earnings will be a negative $.03 per share, including a one-time charge of $.01 per share for acquisition related costs. C-bridge's total pro-forma net loss (which excludes stock compensation and goodwill amortization expenses) for the first quarter of 2001 is now anticipated to be a net loss of $0.07 per share.

"Although the wireless market has been slower to evolve than originally anticipated, we continue to hire experts from this field in the US, Europe and Asia, positioning C-bridge to capitalize on the wireless market as it emerges," Bellini commented. "We have provided wireless components to four of our most recent solutions, and are anticipating a significant ramp in the future."

Olav E. Folkestad, president of BEKK added, "Norwegian governmental approval was not obtained within the agreement's time limit, and we concluded that it is not in the interest of BEKK to negotiate further."

Both companies confirm that the parting is amicable.

Conference Call

In addition, C-bridge announced that it will hold a conference call on Monday, February 5 at 5:00 p.m. EST  to discuss its decision. This call is open to all parties.

To participate in the conference call, please dial 1-800-231-9012 (Domestic) or 1-719-457-2617 (International). The call will be led by Joe Bellini, president and CEO. Richard Putz, CFO, will also participate.

A replay of the call will be available two hours after the completion by dialing 1-888-203-1112 (Domestic) or 1-719-457-0820 (International). The replay will be available until 5:00 p.m. EST Monday February 12, 2001. The replay conference ID number is 760814. An archived copy of this call will also be available until February 12, 2001, on the Company's web site.

If you need further information, please contact Jim Harper, Controller, at 617-528-1614 or e-mail [e-mail].

About C-bridge

C-bridge (NASDAQ: CBIS) is the originator of the iSolutions approach to e-Enterprise consulting and services. A noted provider of quality, industry-focused e-Enterprise solutions and consulting services to the Global 2000 and emerging industry leaders, C-bridge's experience, execution and strategic counsel to enterprises striving to manage their value chains have earned recognition worldwide. C-bridge iSolutions are the new breed of "productized" services designed to provide organizations with reliable, standards-based, business and technology architecture. iSolutions integrate the e-Enterprise and value chains to retain customers, expand markets and improve efficiencies.

Headquartered in Cambridge, Massachusetts, C-bridge is distinguished by its commitment to education as a driver of better decisions, a catalyst for change and a facilitator for successful implementation of strategy. C-bridge works to ensure the success of its clients by providing mentoring, knowledge transfer and executive education to thousands of industry leaders per year. More information about C-bridge can be found at www.c-bridge.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This release contains information about future expectations, plans, and prospects of C-bridge's management that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the profitability of the Company's contracts, the Company's ability to retain existing clients and attract new clients, the Company's ability to hire, train, and retain qualified employees, the Company's ability to continue to develop effective sales and marketing capabilities, the Company's ability to keep pace with the Internet's rapid technological changes, evolving industry standards and changing client requirements, worldwide business use of the Internet, the growth in the number of web access devices per user, the occurrence of any failure of the Internet, the continued improvement of security on the Internet, general economic and industry conditions, as well as other factors noted in the Company's Registration Statement on Form S-1 dated December 16, 1999, as filed with the Securities and Exchange Commission and in the Company's Annual Report on Form 10-K/A for the year ended December 31, 1999.

C-bridge is a trademark of C-bridge Internet Solutions, Inc. All other trademarks are the property of their respective companies.