CMGI and Pacific Century CyberWorks
Announce Share Exchange
ANDOVER, Mass. and Hong Kong, September 23, 1999 -- CMGI, Inc.
(NASDAQ: CMGI) and Pacific Century CyberWorks Limited ("PCCW;" Reuters:
1186.HK; Bloomberg: 1186), a company listed on The Stock Exchange of Hong
Kong, announced today that the two companies have entered into an agreement
whereby CMGI will issue US$350 million worth of its common stock to PCCW in
exchange for $350 million worth of shares of PCCW, subject to certain customary
terms and conditions.
In addition, the companies are in discussion to form a strategic relationship to
jointly develop their Internet-related business activities in Asia, including the
possible establishment of a venture for the development and application of
Internet technologies within the Asian marketplace, and an agreement for
co-investment with respect to Internet opportunities in the United States and
Asia.
About The Pacific Century Group
The Pacific Century Group (www.pcg-group.com) was established in October
1993 with proceeds from the sale of STAR TV, the first pan-Asian satellite
television network, operating in more than 50 countries, to News Corp. At the
sale, which was completed in 1995, the valuation of the enterprise was US$950.5
million. The total original investment in STAR TV, which Mr. Richard Li founded in
1990, was US$125 million. The Group's publicly-listed companies and non-listed
operations are active worldwide in digital technology, financial services and
infrastructure development.
Pacific Century CyberWorks, the Group's technology flagship, announced in
August 1999 its acquisition of Pacific Convergence Corporation (PCC), a joint
venture between Pacific Century Group (60%) and Intel Corporation (40%), the
world's leading maker of microprocessors. Intel's investment of US$50 million in
PCCW, combined with its initial 40% stake in PCC, gives it a 13.05% stake in
PCCW. PCC's objective is to be the preeminent provider of broadband Internet
services in Asia via its satellite network serving 110 million connected cable
households.
Listed companies within the Group, in addition to PCCW, include
Singapore-listed Pacific Century Regional Developments Limited (Reuters:
PCEN.SI; Bloomberg: PAC SP); and Hong Kong-listed Pacific Century Insurance
Limited (Reuters: 0065.HK; Bloomberg: 65).
The Pacific Century Group is the sole partner with the Government of Hong Kong
in the approximately US$1.6 billion Cyber-Port project (www.cyber-port.com)
announced by the Financial Secretary Donald Tsang in his 1999 Budget. The
Cyber-Port is a comprehensive facility designed to foster the development of
Hong Kong's information services sector through the formation of a strategic
cluster of both established and start-up companies at the one location.
The Group's aim is to build on its expertise and knowledge of digital technology
and new media to become a preeminent leader in Internet content and services
such as eCommerce. The Group believes there are tremendous synergies
between its existing activities in this field and future business opportunities.
PCCW's parallel involvements in the Cyber-Port and the fast-growing information
technology and Internet sectors, and its acquisition of Pacific Convergence
Corporation, will help secure Hong Kong's position as a hub of Asia-focused
eCommerce and Internet content development, and create new opportunities for
the best talent in the region.
About CMGI
With nearly 50 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest,
most diverse network of Internet companies in the world. This network includes
both CMGI operating companies and a growing number of synergistic
investments through its venture capital affiliate, @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. Microsoft, Intel, Sumitomo and Compaq hold minority
positions in CMGI.
CMGI's majority-owned subsidiaries include Engage Technologies (Nasdaq:
ENGA), Activerse, Adsmart, AltaVista, Cha! Technologies, iCAST, Magnitude
Network, NaviSite, NaviNet, Planet Direct and ZineZone. The company's
@Ventures affiliates have ownership interests in Lycos, Inc. (Nasdaq: LCOS),
Critical Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), Chemdex (Nasdaq:
CMDX), Ancestry.com, Asimba, AuctionWatch, Aureate Media, blaxxun,
BizBuyer.com, buyingedge.com, CarParts.com, CraftShop.com, eCircles.com,
EXP.com, FindLaw, Furniture.com, HotLinks, Intelligent/Digital, KOZ.com,
Mondera.com, MotherNature.com, NextMonet.com, NextPlanetOver.com,
OneCore.com, ONElist, PlanetOutdoors.com, Productopia, Promedix.com,
Raging Bull, Softway Systems, Speech Machines, ThingWorld.com, Vicinity,
Virtual Ink, Visto and WebCT.
CMGI is also the majority-owner of SalesLink, InSolutions and On-Demand
Solutions, leaders in the direct marketing, fulfillment and turnkey arenas. CMGI
Corporate headquarters is located at 100 Brickstone Square, Andover, MA
01810. Telephone: 978-684-3600. Fax: 978-684-3814. Additional information is
available on the company's Web site at cmgi.com.
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