Egghead Recapitalizes ELEKOM Subsidiary.SPOKANE, Wash.--(BUSINESS WIRE)--Nov. 11, 1997--Egghead, Inc. (Nasdaq: EGGS) has recapitalized its subsidiary ELEKOM Corporation ("ELEKOM"), a producer of advanced business-to-business electronic commerce systems. Egghead Chairman George Orban said Hummer Winblad Venture Partners and Olympic Venture Partners have made an equity investment in what had been a wholly owned Egghead subsidiary. Egghead, Hummer Winblad, and Olympic are jointly investing $2.5 million in ELEKOM. "This strategic partnership is good news for Egghead shareholders," Orban said. "ELEKOM is an emerging enterprise and both Hummer Winblad and Olympic are well qualified to help the company achieve its potential. These two firms have a unique combination of investment, technical, and operational expertise in the computer software industry. We believe this investment will help unlock ELEKOM's potential value while reducing risk for Egghead's shareholders." As part of the recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. , Egghead will retain an initial 25 percent interest in ELEKOM. Orban will continue to serve on the ELEKOM board of directors. ELEKOM's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , ELEKOM Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , streamlines the procurement process within large corporations. The product recently was voted "Best of Class" in the Accounting, Purchasing, and Administration category at The Internet Open Program at The Internet Commerce Expo in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. . San Francisco-based Hummer Winblad Venture Partners was the first venture capital fund to exclusively focus on investing in computer software companies. The firm has $95 million under management. Olympic Venture Partners, with offices in Kirkland, Wash. and Lake Oswego Lake Os·we·go A city of northwest Oregon, a residential suburb of Portland. Population: 35,800. , Ore. is the leading early-stage technology venture capital fund headquartered in the Pacific Northwest with over $160 million under management. In its fourteen-year history, Olympic has funded over fifty high technology startups. Target areas for investment include software, communications, medical devices and biotechnology, electronics, and high technology services. Egghead, Inc., with revenues of $415 million for fiscal year 1997, including recently acquired Surplus Direct, is a reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. of personal computer hardware, software, and accessories. The combined company operates 85 retail stores, two direct response divisions (1-800/EGGHEAD and 1-800/SURPLUS) and three Internet commerce sites (www.egghead.com, www.surplusdirect.com, and www.surplusauction.com). This news release 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 certain risks and uncertainties including, without limitation, changes in competition, the seasonality of financial results, dependence on suppliers, dependence on purchase and use of personal computers, and other risks detailed in the company's Securities and Exchange Commission filings and reports. CONTACT: Egghead Inc. Brian Bender Sir Brian Geoffrey Bender is the Permanent Secretary, of the Department for Business, Enterprise and Regulatory Reform of the United Kingdom Government. He was previously the Permanent Sectretary of the now defunct Department of Trade and Industry. , 509/891-4851 or The Rockey Company John Hough n. 1. Same as Hock, a joint. v. t. 1. Same as Hock, to hamstring. [ imp. & p. p. os> r>; p. pr. & vb. n. os> n. 1. An adz; a hoe. v. t. 1. To cut with a hoe. , 206/728-1100 jhough@rockey-seattle.com |
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