Engage To Expand Global Reach Through Acquisition of Leading Canadian Internet Advertising Network -- Gallop & Gallop's Virtual Billboard Network to become Engage Canada.Business Editors ANDOVER, Mass.--(BUSINESS WIRE)--May 26, 2000 Engage, Inc. (Nasdaq: ENGA), the leading provider of next generation online marketing solutions and a majority-owned operating company operating company A business that engages in transactions with outsiders. of CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) , Inc., today announced a definitive agreement to purchase substantially all of the assets of Virtual Billboard Network (VBN See visitor-based networking. ), one of the largest Canadian-owned Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. networks, through the issuance of Engage stock valued at approximately $5 million (US). Representing over 150 web sites and delivering over 30 million ad impressions each month, VBN provides Engage with a strong foothold into the rapidly growing Canadian marketplace and enhances Engage's media properties. Upon completion of the acquisition, which is expected by early-June, the business of VBN will become Engage Canada, accelerating Engage's global expansion strategy. In addition, Tom Rothfels, former chief executive officer of VBN, will become general manager of Engage Canada. As part of the acquisition, VBN's staff of 13 will be retained in its entirety, with Engage maintaining its current operations in Toronto. VBN's extensive network of over 150 Canadian sites will be rolled into Engage Media(TM), a new division of Engage that provides marketers with one resource to seamlessly develop and manage online campaigns that meet demanding marketing goals and objectives. Engage Canada's sales team will have the opportunity to represent products and services from all Engage divisions, including Engage Media, Engage Business Media, Engage Enabling Technologies, AdKnowledge and I/PRO. Additionally, VBN's network will be integrated with the powerful Engage Knowledge database of over 52 million behavioral-based anonymous profiles, thus further expanding the breadth and depth of Engage's anonymous profile database. Paul Schaut, Engage President and Chief Executive Officer, commented, "Our acquisition of VBN demonstrates Engage's commitment to global expansion, and marks the first step in penetrating the Canadian online marketing space. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a 1999 Ernst & Young and IAB (1) See Internet Architecture Board. (2) (Interactive Advertising Bureau, New York, www.iab.net) An industry association founded in 1996 to set standards and guidelines for interactive advertising and marketing. Canada survey, Canadian online publishers received approximately $55.5 million in ad revenues, with this number expected to reach $109 million in 2000. As an Engage strategic partner, VBN has a track record of delivering comprehensive and effective online advertising campaigns for its customers and has established strong relationships with a growing number of Canadian marketers, web publishers and media buyers. We intend to leverage these relationships to broaden the scope of our media network, generate cross-selling opportunities and build a leading presence in Canada." As a well-known and respected advertising player, VBN is one of the largest Canadian-owned Internet advertising media companies. Leveraging the expertise of parent organization, Gallop gallop /gal·lop/ (gal´op) a disordered rhythm of the heart; see also under rhythm. atrial gallop S diastolic gallop S presystolic gallop S & Gallop Advertising Inc., VBN has been successfully providing one-stop online media buying solutions for its affiliates and customers for almost four years. "VBN's past relationship with Engage is the natural foundation for our evolution into Engage Canada," said Thomas M. Rothfels, President & 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 VBN. "This is a great opportunity for the company and all of our employees. We're extremely excited about bringing our expertise in Canadian online advertising to help propel Engage's international expansion plans." About Virtual Billboard Network: Virtual Billboard Network is a division of Gallop & Gallop Advertising Inc. Founded in 1983 Gallop & Gallop, one of Canada's best-known media services companies, boasts VBN-one of the largest Canadian-owned Internet advertising networks. With over 150 participating web sites and a strategic alliance with U.S based Engage Media, VBN delivers targeted, measurable and cost-effective online ad campaigns for a variety of major national and multi-national clients. Utilizing state-of-the-art ad targeting, delivery, measurement and auditing systems, VBN delivers the most comprehensive and effective online advertising campaigns available. Gallop & Gallop will operate its other media properties out of new premises. About Engage(R): Engage, Inc. (Nasdaq: ENGA) is the leading provider of next generation online marketing solutions and a majority-owned operating company of CMGI, Inc. Based in Andover, Mass., Engage helps marketers target online audiences and convert them into loyal customers. Engage has European headquarters in London and offices worldwide. For more information on Engage, please visit www.engage.com About CMGI and CMGI @Ventures: With more than 70 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest, most diverse network of Internet companies in the world, including both CMGI operating companies and synergistic investments made through its venture capital affiliate, CMGI @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 The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI. CMGI's majority-owned operating companies include Engage (Nasdaq: ENGA), NaviSite (Nasdaq: NAVI), 1stUp.com, Activate, AdForce, AltaVista, CMGion, CMGI Solutions, Equilibrium, ExchangePath, iCAST, MyWay.com, NaviPath, SalesLink, Tribal Voice
CMGI's corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810. CMGI @Ventures has offices there, as well as at 3000 Alpine Road, Menlo Park Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , CA 94028. For additional information, see http://www.cmgi.com and http://www.ventures.com Engage 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 : This 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. 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 expected benefits resulting from Engage's acquisition of VBN, the expected benefits resulting from the integration of the operations of VBN with the operations of Engage, and the expected number of opportunities to be presented to online marketers by the acquisition. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that the business of VBN will not be successfully integrated with the business of Engage; risks associated with entering into new market segments; slower than expected growth in Internet advertising; the timely development of new profile-based products and services; the adoption of new laws New Laws: see Las Casas, Bartolomé de. and regulations affecting the provision of Internet advertising services, including laws and regulations covering privacy, pricing and content; and increased competition and technological changes in the industries in which Engage competes, and other risks detailed in Engage's 1999 Annual Report on 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. and from time to time in Engage's other reports filed with the SEC. Engage is a Registered Trademark of Engage, Inc. |
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