CYSP news
JERSEY CITY, NJ, Mar 17, 2000 (BUSINESS WIRE) --
Investment in B2B E-Commerce Facilitator Marks Initial Step In
Company's Transition to its New Internet Strategy
Cybershop.com(R), Inc. (NASDAQ: CYSP), today announced that it has made a
$900,000 equity investment in e-Commerce Solutions, LLC ("ECS"), marking the
Company's first investment since it transition to its new Internet business
strategy. The Company is funding its investment through the simultaneous sale of
the Cybershop.com domain name and customer lists to ECS for approximately one
million dollars, which will be paid by ECS in a combination of $100,000 cash and
the $900,000 of ECS equity. ECS is a developer and operator of customized online
marketplaces for merchants and major Internet portals and destination sites,
currently operating approximately 100 sites.
ECS, using its proprietary technology, enables client sites to immediately offer
e-commerce retail platforms by distributing merchants on the clients' web sites.
ECS provides a full suite of services to its merchants to enable them to be a
part of a dynamic and extensive online marketplace at a fraction of the cost and
time of establishing their own site. Some of the merchants participating in the
ECS system include Fogdog.com (NASDAQ: FOGD), Priceline.com (NASDAQ: PCLN) and
Reel.com. In addition, ECS provides client sites with a private label turnkey
e-commerce shopping system to improve profitability at a fraction of the cost
and time of building and implementing their own shopping site. Some of the sites
participating in the ECS system include Mail.com (including affiliated sites
Lycos and Netscape), ZDNet, ABC TV, and Geoportals. The major investors in ECS
include the Soros Group and Growth Capital Partners.
"We are pleased to have an investor with Cybershop's knowledge, expertise and
relationships join the ECS team", said Philip Gunn, Chairman and Co-Founder of
ECS. "We look forward to working with Cybershop as we continue to develop and
implement our business strategy."
"ECS has made significant progress over the past year and we believe that the
company will continue to leverage its technology and other assets to grow it's
already impressive group of merchants and client sites", said Kevin Miller,
President of Cybershop.com. "This initial transaction was a special opportunity
for us to deploy the Cybershop.com assets consistent with our new business
model. We are excited to have been able to find a company with the credentials
of ECS and with investors like the Soros Group and Growth Capital Partners. ECS
represents the kind and quality of company we will continue to seek to add to
our portfolio of companies as we proceed with our new Internet business
strategy."
About Cybershop.com
Cybershop.com, Inc. identifies and develops attractive early stage Internet
companies. Cybershop.com, Inc. can provide these companies, as needed, with
management, marketing, financing (including early stage seed capital), human
resources, accounting resources, use of its facilities and its extensive
expertise in business development. Cybershop.com will received equity positions
in these companies commensurate with the level of services provided and the
stage of their development. The Company also operates its online and direct
response company, Tools for Living. Tools for Living's website is located at
www.toolsforliving.com. In order to reflect its new focus, Cybershop.com, Inc
anticipates changing its name and Nasdaq trading symbol in the near future.
Safe Harbor
This announcement contains forward-looking statements that involve risks and
uncertainties that include, among others, the Company's limited operating
history, anticipated losses, unpredictability of future revenues, potential
fluctuation in quarterly operating results, seasonality, competition, risks
associated with system development and operation risks, management of potential
growth, as well as the inherent risks and uncertainties of litigation, and risks
of new business areas and strategic alliances, as well as such risks (or others)
that exist as to any portfolio company in which the Company invests.
Distributed via COMTEX.
Copyright (C) 2000 Business Wire. All rights reserved.
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CONTACT: Investor Contact:
Cybershop.com Inc.
Steve Del Vecchia
Director of Investor Relations
Tel. 201/234-5007
steved@cybershop.com
KEYWORD: NEW JERSEY
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
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