CMGI and Pacific Century CyberWorks Establish Joint Venture to Create and Operate Internet Businesses in Asia.

Business/Technology Editors

ANDOVER, Mass. and HONG KONG--(BUSINESS WIRE)--Jan. 25, 2000

CMGI Asia to extend CMGI operating companies into

Asia-Pacific Internet Marketplace 

CMGI, Inc. (NASDAQ:CMGI) the world's largest and most diversified network of Internet companies, and Pacific Century CyberWorks Limited (PCCW), the Hong-Kong listed technology flagship of Pacific Century Group (www.pcg-group.com), today announced they will form a joint venture to create and operate Internet-related businesses in the Asia-Pacific region.

The new company, to be called CMGI Asia, will be headquartered in Hong Kong. CMGI Asia will serve as a holding and management company for the purpose of establishing Internet operating businesses in Asia through separate joint ventures with individual CMGI companies. In each case, CMGI Asia will initially own at least 60% of the equity of the Asian operating company. The remaining 40% will be held by the individual CMGI operating company.

CMGI Asia will initially work with the following four CMGI companies to establish joint venture operating companies in Asia: AltaVista (http://www.altavista.com), the premier media and commerce network; Engage Technologies (Nasdaq: ENGA; http://www.engage.com), a leading provider of next generation online marketing solutions; iCAST (http://www.icast.com), a multi-media rich, online entertainment company; and 1ClickCharge (http://www.1clickcharge.com), the pioneering single-click Internet payment service. Other operating companies in the CMGI network, including those joining through incubation or acquisition, will have an opportunity to expand their operations in Asia under similar terms.

&uot;Asia is the hottest emerging market for the growing Internet economy and our partnership with PCCW, furthered by the creation of CMGI Asia, places CMGI and its operating companies in an unrivaled position to take advantage of the Asian market opportunity,&uot; said David Wetherell, Chairman and CEO of CMGI. &uot;Under the direction of Richard Li, PCCW has consistently demonstrated its ability to identify and exploit emerging technology trends, in many cases far ahead of even the US market. We're thrilled to put that knowledge to work on behalf of CMGI and its companies. Working ever closer with PCCW, we will continue to build the largest, most comprehensive, and synergistic network of Internet businesses in the world.&uot;

Alex Arena, Group Managing Director of PCCW, added, &uot;CMGI Asia will build a powerful presence for the world's leading international Internet brands in the Asia-Pacific region and bring some of the most exciting web companies closer to Asian consumers and businesses. The further strengthening of our relationship with CMGI clearly underlines our position as the preferred Internet partner in Asia for global brands.&uot;

Pacific Century CyberWorks is the largest Internet company in Asia, outside of Japan. It is the Hong Kong-listed vehicle of Pacific Century Group (Reuters 1186.HK; Bloomberg: 1186). Later this year, PCCW will launch the world's first fully converged broadband service, targeted initially at the Asia-Pacific region. Today's announcement follows a $350 million equity swap announced by the two companies on September 23, 1999.

About CMGI

With more than 60 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest, most diverse network of Internet companies in the world. This network includes both CMGI operating companies and a growing number of synergistic investments through its venture capital affiliate, @Ventures. CMGI leverages the technologies, content and market reach of its extended family of companies to foster rapid growth and industry leadership across its network, and the larger Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI.

CMGI's majority-owned operating companies include Engage Technologies (Nasdaq: ENGA), NaviSite (Nasdaq: NAVI), 1ClickBrands, 1stUp.com, Activate.net, Activerse, AdForce, Adsmart, AltaVista, CMGI Solutions, Equilibrium, Flycast, iCAST, Magnitude Network, MyWay.com, NaviNet, SalesLink, Tribal Voice and ZineZone. The company's @Ventures affiliates have ownership interests in Lycos, Inc. (Nasdaq: LCOS), Critical Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), Chemdex (Nasdaq: CMDX), MotherNature.com (Nasdaq: MTHR), Asimba.com, AuctionWatch.com, Aureate Media, blaxxun, BizBuyer.com, Boatscape.com, buyersedge.com, CarParts.com, CraftShop.com, eCircles.com, eGroups.com, EXP.com, FindLaw, FoodBuy.com, Furniture.com, Half.com, HotLinks, INPHO/HomePriceCheck.com, Intelligent/Digital, KOZ.com, Mondera.com, MyFamily.com, NextMonet.com, NextPlanetOver.com, Oncology.com, OneCore.com, PlanetOutdoors.com, Productopia, Raging Bull, SnapFish.com, Speech Machines, ThingWorld.com, Vicinity, Virtual Ink, Visto, Vstore and WebCT.

CMGI's corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810, Telephone: [phone]. Fax: [phone]. Additional information is available on the company's Web site at http://www.cmgi.com.

About The Pacific Century Group

The Pacific Century Group (www.pcg-group.com) was established in October 1993 with proceeds from the sale of STAR TV, the first pan-Asian satellite television network, operating in more than 50 countries, to News Corp. At the sale, which was completed in 1995, the valuation of the enterprise was US$950.5 million. The total original investment in STAR TV, which Mr. Richard Li founded in 1990, was US$125 million. The Group's publicly-listed companies and non-listed operations are active worldwide in digital technology, financial services and infrastructure development.

Pacific Century CyberWorks Limited (PCCW) is the Hong Kong-listed technology flagship of the Pacific Century Group (www.pcg-group.com). PCCW is seeking to create the world's largest broadband Internet business in the world, beginning in Asia, while bringing together the best talent, the best technology and the best companies as partners.

PCCW is comprised of three main businesses: Pacific Convergence Corporation, CyberWorksVentures and the Cyber-Port project. Pacific Convergence Corporation (PCC) has set an objective to become the leading provider of broadband Internet services in Asia via its satellite network serving more than 130 million connected cable households. In a related strategic investment, PCCW has acquired approximately 23% of Silicon Valley-based SoftNet Systems, Inc. (NASDAQ: SOFN), one of the three largest broadband Internet providers over cable in the U.S. PCC, originally formed as a 60:40 joint venture between the Pacific Century Group and Intel Corporation, the world's leading maker of microprocessors, is a subsidiary of PCCW. Intel, following the merger of PCC with PCCW, has an 8% stake in PCCW on a fully diluted basis.

PCC's NOW (Network of the World) will offer the world's first fully converged service providing interactive digital video viewing and web access. PCC will utilize at least three global Internet and digital video content production centers.

PCCW, through its CyberWorksVentures arm (CWV), enters into partnerships and invests in local and international information technology and Internet businesses. CWV is creating the preeminent incubation environment for established and start-up Internet businesses in Asia. CWV has invested in more than 25 Asian and Western Internet companies. CWV venture cash investments have grown from an initial US $58million to a collective value of more than $US1.3 billion currently.

The Pacific Century Group is developing with the Government of Hong Kong the approximately US$1.6 billion Cyber-Port project (www.cyber-port.com). The Cyber-Port is designed to foster the development of Hong Kong's information services sector through the formation of a strategic cluster of both information technology and services companies at the one location. Microsoft is the latest to join the roster of anchor tenants which includes leading international IT corporations such as Cisco and Softbank.

This release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements in this release address a variety of subjects including, for example, the growth of the Internet economy in Asia and the expected benefits resulting from the joint venture with PCCW. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the successful completion of joint ventures with CMGI's operating companies; risks associated with entering into new markets; risks associated with the ability to protect intellectual property rights in different markets; and different political conditions and business customs in foreign markets. For a detailed discussion of these and other cautionary statements, please refer to CMGI's filings with the Securities and Exchange Commission, including CMGI's Annual Report on Form 10-K for the most recently ended fiscal year.