CAIS Internet Closes On Additional Portion of KKR Investment; Shareholders Approve Issuance of Shares; CAIS Receives Additional $26.1 Million.Business Editors/Hi-Tech Writers WASHINGTON--(BUSINESS WIRE)--April 17, 2000 CAIS CAIS - Common APSE Interface Specification Internet (Nasdaq: CAIS) announced today that KKR KKR Korringa-Kohn-Rostoker (method) KKR Kohlberg, Kravis & Roberts & Co. KKR Kalkara (postal locality, Malta) KKR Kramers-Kronig Relations KKR Komarappa Gounder Ramalingam (hospital in India) (Kohlberg Kravis Roberts Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City-based private equity firm that focuses primarily on late-stage leveraged buyouts. It was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. ) purchased an additional $26.1 million of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . Under the terms of its agreement with CAIS, this investment was made in the form of convertible preferred stock with a conversion price of $16.50 per share. CAIS announced Feb. 28, 2000 that it had successfully completed the sale of $73.9 million of convertible preferred stock. KKR has now invested $100 million. "This most recent investment demonstrates that the financial community continues to see significant value creation opportunity in the CAIS business model" said Ulysses G. Auger, II, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , CAIS Internet. "We are obviously pleased to have such strong endorsement from highly sophisticated partners." The issuance of these additional shares was subject to shareholder approval under Nasdaq rules. Holders of the requisite number of shares needed for approval agreed to vote in favor of the issuance. KKR's initial purchase represents a 16.5 percent fully diluted capital interest in CAIS Internet. KKR also has a one-year option to purchase an additional $100 million of convertible preferred stock with a conversion price of $20.00 per share. Upon the exercise of the option, KKR's investment would represent a 26.4 percent fully diluted capital interest in CAIS Internet. In addition, assuming the exercise of KKR's option, KKR will have the right to elect an additional seat on the Board. CAIS announced previously that James H. Greene, Jr. and Alex Navab from KKR joined CAIS's Board of Directors. On the heels of the investment, CAIS recently announced its acquisition of QuickATM's 165-strong kiosk business to grow its kiosk network nationwide, and disclosed its plans to offer Voice over IP services with Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. (one of the first to commercialize Voice over IP internationally). CAIS also announced last month commercial agreements with 3Com Corporation to develop joint products and services. 3Com also invested $20 million in the broadband company. CAIS Internet contract coverage for its broadband services in the hotel and apartment industries continues to grow. CAIS now has more than 10 top hotel chains and REITs (real estate investment trusts) designating CAIS Internet as the chosen high speed Internet and content services solution in more than 10,500 properties nationwide. About CAIS Internet CAIS Internet, Inc. (Nasdaq: CAIS) is a leading broadband access See broadband and wireless broadband. solutions company. CAIS provides customers with comprehensive high speed Internet solutions while at home in apartments, at work during the day in small-to-medium businesses, or on-the-go at hotels, airports, travel plazas, cruise ships This is a list of cruise ships, both those in service and those that have since ceased to operate. Both cruise ships and cruiseferries are included in this list. (Ocean liners are not included on this list, see List of ocean liners. and retail stores. Whether it's creating an in-building network and content services for multiple users with its proprietary and patented technologies, providing a public area Internet kiosk, or giving businesses connectivity with DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary & leased-line dedicated access, the company delivers a cost-effective, easy and convenient Internet experience for customers. The customer experience is the result of a one-stop, integrated solutions package of innovative CAIS network access and technologies, award-winning IPORT software, customer support, portal content and systems. More information on the company is available by calling 202/715-1300, or visiting the company's web site at www.cais.com. About KKR KKR is a private investment firm with offices in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Menlo Park Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , and London. Recent communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. investments include Reltec Corporation, Amphenol Corporation, Birch Telecom, Inc. and Zhone Technologies, Inc. This press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets, management's beliefs and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which may cause actual results, performance or achievements of the Company to be materially different from the results or plans expressed or implied by such statements. This release contains statements relating to CAIS's future expectations and business strategies or other "forward-looking" information. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the statements. Important factors that may cause actual results to differ from projections include, among others: changes in business conditions; changes in the Internet services industry and the general economy; our limited operating history; our ability to manage rapid growth; our ability to enter into joint ventures and other strategic relationships with companies on terms acceptable to us; and the impact of computer and related problems that may arise from the Year 2000 problem Year 2000 problem, Y2K problem, or millennium bug, in computer science, a design flaw in the hardware or software of a computer that caused erroneous results when working with dates beyond Dec. 31, 1999. on our business. |
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