uBid and Surplus Record Form Alliance to Launch Major Business-to-Business Initiative in Online Auction Space.
ELK GROVE VILLAGE, Ill., July 23 /PRNewswire/ -- uBid, Inc. (Nasdaq: UBID), a leading online auction e-commerce site, announced today that it has formed an alliance with Surplus Record, Inc., the world's largest directory of used and surplus machinery and equipment, to introduce real-time electronic bidding to industrial manufacturers. This agreement enables uBid to partner with Surplus Record to conduct online auctions of used and surplus machinery throughout North America. The new Web site, www.srauction.com , is scheduled to launch later today, and will also be accessible through a link on uBid's site ( www.ubid.com ).
Surplus Record operates the Internet's largest online used machinery and equipment classified Web site, www.surplusrecord.com . The Web site, launched in 1995, has over 50,000 listings valued in excess of $500,000,000 updated daily by more than 1,000 suppliers. Millions of dollars worth of equipment sales have been negotiated through Surplus Record's Web site since that launch. Auctions on www.srauction.com will include all types of industrial machinery and machine tools -- from air compressors, grinders, lathes, and presses to crushers, motors, and turbines.
"Our reputation and 75 years of experience in the surplus and used capital equipment industry, combined with the high quality of uBid's Internet auction expertise, will provide buyers and sellers with a trustworthy, liquid and dynamic marketplace in which to buy and sell machinery," stated Surplus Record President and CEO, Tom Scanlan.
Between its first auction in December 1997 and June 30, 1999, uBid auctioned over 787,000 merchandise units, registered over 533,000 users, and recorded more than 54.0 million visits to its Web site. Revenues for the six months ended June 30, 1999 were $79.9 million -- compared to $48.2 million in sales that uBid transacted in all of 1998.
"We anticipate that the business-to-business market will see the same growth as has the consumer sector," said Greg Jones, uBid's CEO. "We are excited about expanding our offerings in the business-to-business arena, and we feel that Surplus Record is an excellent partner for us. Surplus Records' early entries in using the Web to facilitate large industrial equipment transactions, shows that it is an innovative pioneer. Together, we expect to establish a competitive advantage in providing manufacturers and equipment dealers with a trustworthy, inexpensive and seamless method of reducing costly idle asset and inventory buildup."
Historically, manufacturers wishing to dispose of used and/or surplus machinery and equipment have had few alternatives than to rely on live, public auctions. "Sellers who have utilized traditional auctions have frequently been surprised at how expensive they are," said Scanlan. "While the quoted fee for an auction may sound reasonable, sellers soon discover that they are also billed for a variety of overhead expenses by the auctioneer. In addition, manufacturers who hold an onsite auction face a disruption to their current manufacturing operations. Perhaps the most significant drawback of public auctions for sellers, however, is that they reach a limited number of bidders, while the audience for an auction on srauction.com is potentially unlimited. For buyers, the greatest disadvantage of the traditional auction is the cost of making an expensive and time-consuming trip to the auction location with no guarantee of holding the winning bid. srauction.com's online auctions will provide the convenience of 24 hour real-time bidding, significantly lower fees and expenses for both buyers and sellers, allow access to a much larger pool of bidders, and, most importantly, give sellers the ability to set the terms and conditions of the auction."
uBid is a leading on-line auction and e-commerce site offering brand name products to both consumers and businesses through live-action bidding using sophisticated auction technology. The company's Internet auctions feature a rotating selection of brand-name computers, consumer electronics, housewares, sporting goods and memorabilia and jewelry.
uBid is committed to providing all customers with the highest-quality auction experience on the Internet and offers supplier warranties on most consumer products. uBid also meets Better Business Bureau Online standards, which give customers the confidence and security to bid safely online.
uBid, with headquarters in Illinois, is a publicly traded company (Nasdaq: UBID). For more information, visit the company's Web site at www.ubid.com .
About Surplus Record, Inc.
Surplus Record, Inc. publishes the Surplus Record, a monthly directory with a worldwide circulation of more than 140,000, and Utillaje, published monthly in Spanish with a circulation that reaches 100,000 Latin American manufacturing firms. The Surplus Record is the world's largest independent directory of surplus and used machinery and industrial equipment. Surplus Record operates www.surplusrecord.com , the Internet's most visited online machinery and equipment classified Web site. The site features over 50,000 listings updated daily, a powerful search engine, and advanced sorting and browsing capabilities.
Surplus Record is an exclusive publishing entity not affiliated directly or indirectly with any association, corporation or individual buying and/or selling machinery and equipment.
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include management's current view of future events and operations and statements regarding uBid's alliance with Surplus Record, the introduction of an industrial equipment auction site and the timing of such introduction, the potential growth of the business-to-business market, management's views on the online auction model and consumer acceptance of new product offerings.
Such statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any forward-looking statement. Factors that could cause actual results to differ materially from such forward-looking statements include the company's limited operating history and its ability to manage growth; the company's ability to maintain relationships with vendors and other online companies; product acceptance of the new categories by consumers and businesses; competition from other online auction providers; changes in Internet technology; and consumer demand. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and other sections of uBid's Registration Statement on Form S-1, filed July 21, 1999 with the Securities and Exchange Commission, and in its other periodic reports filed from time to time with the SEC. (The company does not undertake to publicly update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.)
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|Date:||Jul 23, 1999|
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