Cybershop.com Announces Agreement to Sell Electronics.net, Its Online Consumer Electronics Business.Business Editors/Technology Writers JERSEY CITY, N.J.--(BUSINESS WIRE)--Feb. 22, 2000 Sale Enables Cybershop To Exit E-Tail Operation And Focus On Its Internet Incubator incubator, apparatus for the maintenance of controlled conditions in which eggs can be hatched artificially. Incubator houses with double walls of mud, a fireroom, and several compartments each holding about 6,000 hens' eggs were developed in ancient times; the Strategy, Grove Street Ventures,Inc. Cybershop.com, Inc.(Nasdaq: CYSP), one of the first publicly traded Internet incubators, today announced that it has signed a letter of intent to sell substantially all of the assets of electronics.Net, its on-line consumer electronics business, to Electronics Online, Inc., a company formed by the former Vice President of Development of Cybershop.com and the former General Merchandise Manager of electronics.Net. In exchange for the assets of electronics.Net, Cybershop.com will receive a convertible note and 19.9% of the equity of the newly formed company. The transaction is expected to close by the end of the first quarter of 2000. The transaction is part of the Company's previously announced plan to implement its new Internet See Web 2.0 and Internet2. incubator strategy. Kevin Miller For other persons of the same name, see Kevin Miller (disambiguation). Kevin Miller (born 1968) is a conservative American talk radio host and political pundit who has been featured on many national news programs, including The Today Show, Leeza Gibbons, CNN, and MSNBC. , President of Cybershop.com, commented, "The sale of substantially all of the assets of electronics.Net is the first step in divesting Cybershop.com of its non-core assets so that we can focus our business on our new Internet incubator strategy. We are pleased to have found a buyer of the assets that is familiar with the operations of electronics.Net and dedicated to trying to build the business. We expect to use the consideration received by Cybershop.com to further enhance our Internet incubator business. We are continuing to seek to sell the retail assets of the closed e-tailing operations and are presently in negotiations for the sale of additional assets." Since CyberShop.com announced its plan to exit online retail, electronics.Net has continued to operate to minimize disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. and facilitate an orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. transition to Electronics Online Inc. Electronics Online, Inc. is being led by Richard Gilbert and JP Le Dour, who as executives of CyberShop.com were instrumental in starting electronics.Net. About Cybershop.com Cybershop.com, through Grove Street Ventures, is one of the first publicly traded Internet incubators. Its mission is to identify and develop attractive early stage Internet companies. Grove Street will provide these companies management, marketing, financing (including early stage seed capital), human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , accounting resources, use of its facilities and its extensive expertise in business development. In return, Grove Street will receive substantial equity positions. Grove Street Ventures will continue to operate its profitable online and direct response company, Tools for Living, which in 1999 generated substantial revenues for the company. Tools for Living's website is located at www.toolsforliving.com. In order to reflect its new focus, CyberShop.com, Inc anticipates changing its name and Nasdaq trading symbol Trading symbol See: Ticker symbol in the near future. Grove Street Ventures' web site will be located at www.grovestreetventures.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. This announcement contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties that include, among others, the Company's limited operating history, anticipated losses, unpredictability of future revenues, potential fluctuation Fluctuation A price or interest rate change. in quarterly operating results, seasonality, competition, risks associated with system development and operation risks, management of potential growth and risks of new business areas, and strategic alliances. |
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