CUC International Makes Strategic Investment in NetGrocer; NetGrocer adds new consumer category to CUC's netMarket.STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 19, 1997--CUC International Inc. (NYSE NYSE See: New York Stock Exchange :CU) today announced a strategic investment in NetGrocer Inc. (http://www.netgrocer.com), the only nationwide online grocery service that delivers household products such as non-perishable food, cleaning supplies, paper goods and baby products at or below retail supermarket prices. CUC CUC Cuban Convertible Peso (ISO currency code) CUC Columbia Union College (Takoma Park, MD, USA) CUC Canadian Unitarian Council CUC Canadian Ultimate Championships will take a 25 percent interest in NetGrocer and has the right to buy the entire company at a later date. For the 25 percent interest in NetGrocer, CUC has invested approximately $5 million. As part of the agreement, NetGrocer will create a customized version of its service for netMarket, CUC's membership-based, consumer-purchasing site that includes travel, auto, books, electronics and appliances. In addition to its presence on netMarket, NetGrocer will maintain its status as a stand-alone site and will promote netMarket membership to its users. With the addition of grocery and household items, CUC moves closer to its vision of covering most major areas of consumer spending through its netMarket site. netMarket members and users can now shop for household supplies by selecting from categories such as condiments, pasta and pet supplies. Low-cost delivery is provided to consumer homes and offices within 2-4 business days through FedEx. All credit card payments are processed using secured transaction technology. "Our members and user base are becoming more and more accustomed to purchasing goods online, and groceries are a natural fit for this medium," said Scot Melland, vice president of business development for CUC's interactive division. "With NetGrocer, CUC is now able to offer consumers value and convenience as they purchase groceries interactively." Daniel Nissan, president 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. of NetGrocer, said, "Consumers spend more than $200 billion on non-perishable groceries every year and a growing percentage of that is spent over the Internet. This strategic agreement fortifies our leadership position in online grocery service, with netMarket introducing us to more people who can enjoy the deeply discounted goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. offered by both organizations." About NetGrocer Inc. Founded in 1995, NetGrocer is the first nationwide low-cost, interactive grocery shopping service, shipping low-priced groceries and other dry goods directly to homes and offices using affordable direct shipping. The company is privately held and maintains corporate offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY. About CUC International Inc. CUC International is the leading membership-based, consumer services company that currently provides access to travel, shopping, auto, dining, timeshare exchange, financial, and other services to more than 71 million consumers worldwide through more than 20 membership programs, including Shoppers Advantage, Travelers Advantage, Entertainment, AutoVantage and other brands. In May 1997, CUC announced a definitive agreement to merge with HFS (Hierarchical File System) The file system used in the Macintosh. The first version, known as "Mac OS Standard," was introduced in 1985. HFS+, an enhanced version, came out in 1998 in preparation for the upcoming Mac OS X operating system. Incorporated, which reaches 100 million consumers annually as a leading franchiser of brand name hotels, residential real estate, and car rental operations, with such well-known brands as Avis, Days Inn, Resort Condominiums International Resort Condominiums International (RCI) is a subsidiary of the firm Wyndham Worldwide (previously Cendant). Founded in 1974, RCI has grown to become one of the larger brokers of timeshare trades. , Ramada ra·ma·da n. Southwestern U.S. 1. a. An open or semienclosed shelter roofed with brush or branches, designed especially to provide shade. b. An open porch or breezeway. 2. , Coldwell Banker and Century 21. The merger is expected to close in the fall of 1997. CONTACT: CUC International Inc. Laura Hamilton, 203/965-5114 (investor relations Investor relations The process by which the corporation communicates with its investors. ) or Niehaus Ryan Group (for CUC International) Alison Bowman, 650/827-7016 (media relations) alison@nrgpr.com or LNS LNS L2TP Network Server (terminates L2TP tunnels & provides PPP and network termination) LNS Laboratory for Neutron Scattering LNS Laboratori Nazionali del Sud (Italy) LNS Logarithmic Number System Communications (for NetGrocer) Suzanne Marcarelli/Marty Querzoli, 617/577-9777 smarcarelli@lnscom.com mquerzoli@lnscom.com |
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