CMGI to Acquire 1stUp.com; Free Internet Access Provider, Serving More than 400,000 Registered Users, to Benefit from CMGI Resources, Internet Technologies.ANDOVER, Mass.--(BUSINESS WIRE)--Sept. 27, 1999-- CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CMGI), the world's largest and most diverse network of Internet companies, announced today that it has signed a binding letter agreement to acquire 1stUp.com (http://www.1stup.com) in a stock-for-stock transaction. 1stUp.com is a leading Internet technology company providing solutions that enable businesses to offer advertising, sponsorship, and e-commerce supported Internet access to their customers. Following the close of the acquisition, expected next month, 1stUp.com will join the CMGI network as a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. in the Operating Group. Additional terms of the proposed transaction were not disclosed. 1stUp.com's patent-pending technology provides a scalable, highly secure solution delivering consumers free, ad-supported dial-up Internet access See dial-up. accounts. In contrast to other ad-supported Internet access services, 1stUp.com works to leverage advertising dollars while allowing its partners to offer a private-label access service. A 1stUp.com partner-branded access offering allows partners to establish a constant online connection with their consumers, and increase their available advertising space. Partners are also able to customize products and services based on the individualized consumer usage data generated by the 1stUp.com technology. 1stUp.com's technology establishes a high-quality Internet connection with a small, "always-on-top" window featuring useful web navigation capabilities and highly targeted advertising. Under its industry-leading partnership with AltaVista announced last month, 1stUp.com currently serves more than 400,000 registered users, and is adding more than 50,000 weekly. Additional partners include Bolt.com, the Internet's leading teen destination. As part of the CMGI network, 1stUp.com will reap immediate benefits from synergies with other CMGI affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. in the most crucial areas of its business: Internet access infrastructure and advertising. With NaviNet, CMGI's provider of private-label network infrastructure and services, 1stUp.com can leverage the GeoDialSP service to accelerate its network expansion at a significantly lower cost per subscriber. Additionally, CMGI subsidiaries Engage and Adsmart can help to improve the targetability and cost-efficiency of 1stUp.com's advertising supported model. "This acquisition serves to provide enormous benefits to both 1stUp.com and a significant number of other CMGI network companies," said David Wetherell, Chairman and 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. , CMGI. "The increases in web advertising spending, in tandem with the declines in the cost of bulk connectivity, make the 1stUp.com model an attractive and highly scalable one. Add to that the increased efficiencies we can provide through companies such as NaviSite, NaviNet, Adsmart and Engage, and this is an even more compelling value proposition. The single largest trend affecting ISPs is low-cost Internet access, and we've been anticipating and building for this eventuality for several years. 1stUp is the culmination of this strategy and as part of the CMGI network, we look forward to offering this service to our ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. , OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and e-commerce partners." "With the support and financial backing of CMGI, 1stUp.com is well positioned to expand its roster of partnerships and increase the economies of scale for our business," said CEO Charles Katz. "CMGI has a keen understanding of the Internet marketplace and has built a successful network of businesses that today include some of the leading brands on the Web. We look forward to being a part of the next generation of CMGI success stories." 1stUp.com's founding management team, including CEO Charles Katz, CTO (Chief Technical Officer) The executive responsible for the technical direction of an organization. See CIO and salary survey. Michael Slemmer, VP of Business Development Kelly Peterson, and VP of Marketing Jonah Steinhart, will remain with the company under the leadership of CMGI. The company will also maintain its current headquarters in San Francisco, CA. About 1stUp.com 1stUp.com is the market leader in providing consumer-oriented businesses with ad-supported Internet access solutions. Working through the marketing and distribution channels of innovative companies like AltaVista and Bolt.com, 1stUp.com provides patent-pending technology that enables its partners to offer branded, cost-effective Internet services to their customers. Aggregating the end-user bases of Bolt.com, AltaVista and future partners, 1stUp.com has the buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. of multiple brands and is able to pass along the benefits of optimal connectivity and advertising deals to its partners. 1stUp.com has received investments from AltaVista, LodgeNet Entertainment Corporation (NASDAQ: LNET LNET Library Network LNET Learning Network LNET Local Network ), and angel investors including individuals from Thomas Weisel Partners Thomas Weisel Partners Group, Inc. (NASDAQ: TWPG), often shortened to just TWP or TWeisel, is a U.S. middle-market and growth focused investment banking firm based in San Francisco, California. . For more information, visit 1stUp.com at http://www.1stup.com. About CMGI With nearly 50 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. Microsoft, Intel, Sumitomo and Compaq hold minority positions in CMGI. CMGI's majority-owned operating companies include Engage Technologies (Nasdaq: ENGA), 1ClickBrands, Activerse, Adsmart, AltaVista, iCAST, Magnitude Network, NaviSite, NaviNet, Planet Direct, Saleslink and ZineZone. The company's @Ventures affiliates have ownership interests in Lycos, Inc. (Nasdaq: LCOS (Liquid Crystal on Silicon) A technology used to make microdisplays for rear-projection TVs and head-mounted displays (HMDs). Each LCoS chip hosts a grayscale LCD shutter sandwiched between a cover glass and a mirror. ), Critical Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), Chemdex (Nasdaq: CMDX), Ancestry.com, Asimba, AuctionWatch, Aureate au·re·ate adj. 1. Of a golden color; gilded. 2. Inflated and pompous in style. [Middle English aureat, from Late Latin aure Media, blaxxun, BizBuyer.com, Boatscape.com, buyingedge.com, CarParts.com, CraftShop.com, eCircles.com, EXP.com, FindLaw, Furniture.com, HotLinks, Intelligent/Digital, KOZ.com, Mondera.com, MotherNature.com, NextMonet.com, NextPlanetOver.com, OneCore.com, ONElist, PlanetOutdoors.com, Productopia, Promedix.com, Raging Bull, Softway Systems, Speech Machines, ThingWorld.com, Vicinity, Virtual Ink, Visto and WebCT. CMGI Corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810. Telephone: 978-684-3600. Fax: 978-684-3814. Additional information is available on the company's Web site at http://www.cmgi.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements in this press release regarding CMGI, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the CMGI Annual Report or Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the most recently ended fiscal year. |
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