CBQ Acquires Priority One Tuesday April 20, 12:05 pm Eastern Time
Company Press Release
Message 9030586
DALLAS--(BUSINESS WIRE)--April 20, 1999--CBQ Inc. (OTC BB:CBQI) announced today that it has closed into escrow its
agreement to purchase Priority One Electronic Commerce Corporation (''Priority One'') of Akron, Pa. As part of the transaction,
CBQ also gains a 10% equity interest in CitX Corporation, www.citx.net, of Quakertown, Pa.
CBQ's acquisition of Priority One and CitX will fuel CBQ's momentum to gain marketshare as a leading provider of e-commerce solutions for businesses selling to other businesses online.
Priority One is a leader in Internet electronic payment processing. Priority One's proprietary Bill Collect(TM) system relieves sellers from the burden of sending out invoices, waiting for checks to arrive in the mail, and dealing with accounts receivable collections. Bill Collect is a high-tech, automated system handling electronic funds transfers (ETF) and credit card payments for Internet e-commerce businesses and traditional sales companies. Priority One is a three-year-old leading high-tech company providing business-to-business electronic payment processing services that enable businesses to electronically collect and disburse
payment in the form of electronic funds transfers (EFT) and credit cards.
Priority One's flagship service, Bill Collect, enables businesses to collect their receivables electronically, via the Internet or Direct-Dial-up gateway, on the date due. The Bill Collect system can be fully integrated with the retailer's software so that information on credit card charges and EFT authorizations can be combined
in the same batch transaction and uploaded directly and simultaneously to Priority One, through the phone lines or via the Internet, without any additional data entry.
Bill Collect was codeveloped by Priority One along with strategic venture partner, CitX. Priority One was founded in 1996, by Sidney Lieberman, Chairman, and principle shareholder.
CitX develops and markets business-to-business, e-commerce solutions. CitX, along with Priority One, jointly developed Bill Collect as well as additional technology and software used in Priority One's Payment Processing Center. In addition, CitX has developed a unique Web-enabled integrated, business-to-business, e-commerce platform, Intrapay(TM), to collect and disburse payments via the Internet.
CitX has formed equity partnerships with Priority One EC Corporation of Akron, Pa., and MCCS of Los Angeles. Additionally, CitX has created strategic partnerships with NCR Corporation, Bell Atlantic, and Redix Corporation. These strategic partners have aligned in support of the CitX Internet-based Electronic Commerce platform called Intrapay, Virtual Electronic Community platform IntraPortal, and Network based Software Application platform called IntraApp. As part of the CitX business strategy, CitX plans to align with other technology, marketing, and service companies in the future, to rapidly expand, and effectively satisfy the needs of its customers.
CitX has developed a unique transaction transport technology called SETX to provide the end-to-end security, scalable processing capability of Electronic Commerce transactions. SETX is a patented proprietary data communication system and protocol that uses dynamic password authentication, pseudonymous
data envelopes, trusted-server predictive Internet routing technology to enable the exchange of secure data transactions, via the Internet, without the need for encryption.
CBQ's foothold in the fast growing area of business-to-business, e-commerce is significantly improved by the acquired talent and technology of both Priority One and CitX. In addition, CBQ's potential marketshare is increased due to an exclusive agreement between the three companies to jointly market each others services
to each companies customer base. The acquisition of Priority One and its customer base, coupled with the joint marketing of integrated Intrapay/Bill Collect services to CitX customer base, could produce strong additional revenues in 1999 for CBQ.
Commenting on the transaction, Michael L. Sheriff, chief executive officer of CBQ stated, ''The acquisition of Priority One and their Bill Collect electronic check clearing system, are steps forward in our strategy to become a dominant provider of Internet-based, e-commerce solutions.''
''We are excited about the opportunity to work with CBQ as our new strategic partner in the e-commerce space,'' said Bernie Roemmele, CEO of CitX Corporation. ''By combining our core competencies, and resources we will be able to quickly expand our customer base and move more aggressively into new vertical market opportunities.''
CitX Corporation is a privately-held, leading high-tech company that primarily develops and markets business-to-business e-commerce solutions, Community-Centric Portals, and Network-Centric (Web-Hosted) software applications, delivered securely across the Internet and private heterogeneous networks.
CBQ's wholly owned subsidiary, CyberQuest Inc. is the developer of www.bid4it.com, a virtual, Internet-based marketplace based on the principles of securities trading. bid4it is a completely automated electronic marketplace that produces a ''true'' market price of products based on the open market interaction between
bidders and sellers. Bidders electronically bid (''Bid'') on desired products and may modify or delete their bids at any time before the Bid matches a Sellers ''asking price'' (''Ask''). The Seller may accept any Bid at any time and may modify or delete their Ask at any time before it matches a Bid. bid4it allows sellers to
compete in a worldwide market for the buyers of all types of products.
CyberQuest's CyberMarketMaker(TM) integrates the best features of securities trading and an auction market. Bidding activity is continually analyzed and asking prices moved up or down in response to market activity. When a ''bid'' and ''ask'' match, the transaction is electronically completed, and the product is ordered
and shipped to the buyer with instant notification to all parties.
For more information about CyberQuest visit www.bid4it.com (bid4it website) and www.cbq.com (Corporate website).
For more information about CitX call 215/538-3535, email bernie@citx.net, or visit the CitX website at www.citx.net.
bid4it and CyberMarketMaker are trademarks of CyberQuest, Inc. CyberQuest sub-licenses the bid4it software and related technologies to interested parties. NOTE: All other trademarks are the property of their respective owners.
This press release includes forward-looking statements related to CBQ, Inc. that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, market acceptance of certain products and other risks. These forward-looking statements are made in reliance on the
''safe-harbor'' provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect CBQ's future results, please see the Company's filings with the Security and Exchange Commission (the ''Commission''). Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual results may differ materially from management expectations.
Contact:
CONTACTS: CBQ, Inc.
Michael Sheriff, 972/732-1100
sheriff@cbq.com
or
Magnum Financial Group
Michael Manahan, 213/488-0443
msmanahan@magnumfinancial.com
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