Vulcan Ventures, Inc. to Invest $20 Million in Fatbrain.com, Inc.; Paul Allen's
Investment Organization Also Granted Board Representation
SANTA CLARA, Calif., Oct 18, 1999 (BUSINESS WIRE) -- Fatbrain.com,
Inc. (Nasdaq: FATB), the Internet's most comprehensive bookstore for
professionals, today announced that Vulcan Ventures, Inc., the
investment organization of Paul G. Allen, has signed a definitive
agreement to invest an additional $20 million in Fatbrain.com to help
fuel its e-commerce initiatives, including eMatter, the Internet's
first secure digital publishing platform.
Under the terms of the agreement, Vulcan Ventures will purchase
unregistered shares of common stock in Fatbrain.com for 110% of the
five day average closing price of Fatbrain.com's shares through last
Friday and will purchase warrants to make future investments in the
Company at 125% of the initial purchase price. In addition, Diane
Daggatt, New Media Analyst at Vulcan Ventures, will join Fatbrain.com's
Board of Directors. The financing agreement also allows for up to $10
million of additional investment.
"We believe eMatter will be important to publishing on the Internet, by
creating a new platform for delivery of certain types of content," said
William Savoy, President of Vulcan Ventures.
Commenting on the new round of financing, Chris MacAskill, President
and Chief Executive Officer of Fatbrain.com, said, "We view the
increased support of Vulcan as a powerful endorsement of our success in
providing innovative e-commerce solutions. We are thrilled that they
share our vision in taking Fatbrain.com's e-commerce strategies to the
next level as we deliver the first comprehensive marketplace for secure
digital publishing."
In a separate announcement today, Fatbrain.com debuted its highly
anticipated eMatter initiative, introducing a wide variety of digital
content from notable authors and publishers. eMatter is the first-ever
secure digital publishing solution that allows people to publish and
sell their works online, earning royalties of at least 50 percent on
every copy sold.
eMatter combines new secure digital rights technologies with
Fatbrain.com's established community of customers to provide the
first-ever global distribution channel for the exchange of works of all
kinds. These include books, magazines, articles and specialty documents
targeted to limited audiences, articles that are longer than a magazine
but shorter than a book and out-of-print materials.
Original eMatter content available today at fatbrain.com
covers a broad range of professional topics including technology,
business, finance, medicine and science, plus a variety of creative
subjects such as fiction, poetry, self-help and how-to guides.
About Fatbrain.com
Fatbrain.com, the Internet's most comprehensive bookstore for
professionals, is the first e-commerce provider to deliver secure
digital publishing through its eMatter initiative. Recently named the
number two fastest-growing public company in Silicon Valley,
Fatbrain.com offers a world-class selection of books, training materials
and documentation for professionals in business and finance, technology
and other industries. Through its corporate Intranet bookstore program,
Fatbrain.com is accessible from the desktops of more than 1.3 million
employees at customer sites. Fatbrain.com offers discounts of up to 40
percent, and all in-stock orders placed by 4 PM PST ship the same
business day. Visit Fatbrain.com on the Web at fatbrain.com.
This announcement may contain forward-looking statements that involve
risks and uncertainties including, among others, Fatbrain.com's limited
operating history, anticipated losses, the unpredictability of its
future revenues, competition, risks associated with system development
and operation risks, management of potential growth, and risks of new
business areas, international expansion, business combinations, and
strategic alliances. Actual results could differ materially from those
discussed. More information about factors that potentially could affect
Fatbrain.com's financial results is included in the Company's filings
with the Securities and Exchange Commission, including its Registration
Statement filed under its original name, Computer Literacy, Inc., on
Form SB-2 on November 19, 1998, as amended. All forward looking
statements are based on information available to the Company on the date
hereof, and the Company assumes no obligation to update such statements.
Note to Editors: Fatbrain.com is a trademark of Fatbrain.com, Inc. All
company and product names may be trademarks of the respective companies
with which they are associated.
Copyright (C) 1999 Business Wire. All rights reserved.
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