VERT replies to Barrons article:
VerticalNet Clarifies Market Confusion
HORSHAM, Pa.--March 20, 2000--A study prepared by Pegasus Research
International, as cited by Barron's in its March 20, 2000 cover story
on the cash burn rates of Internet companies, is "highly confusing,"
according to Mark Walsh, President and CEO of VerticalNet, Inc.
(Nasdaq: VERT).
The facts: At the end of 1999, VerticalNet showed
-- $14 million in cash and cash equivalents
-- $44 million in short term investments and
-- $24 million in long-term investments.
This totals approximately $82 million in liquidity as of December
31, 1999. It appears that Pegasus used only cash and cash equivalents
for purposes of its study and did not include short and long-term
marketable securities readily convertible into cash.
On January 20, 2000, VerticalNet announced a commitment by
Microsoft to invest $100 million in convertible preferred stock of
VerticalNet, including a three-year revenue commitment. Additionally,
VerticalNet, through an earlier investment in Tradex Technologies,
Inc., has a right to receive shares of the common stock of Ariba, Inc.
valued (based on Ariba's closing price on March 20, 2000) at
approximately $71.4 million. After giving effect to the Microsoft
investment and the current value of the shares of Ariba, VerticalNet
will have more cash than it had after it completed its initial public
offering in February 1999.
About VerticalNet, Inc.
VerticalNet, Inc. (www.verticalnet.com), owns and operates 55
industry-specific Web sites designed as online business-to-business
communities, known as vertical trade communities. These vertical trade
communities provide users with comprehensive sources of information,
interaction and e-commerce. They are grouped into the following
industry sectors: ADVANCED TECHNOLOGIES, COMMUNICATIONS,
ENVIRONMENTAL, FOOD AND PACKAGING, FOODSERVICE AND HOSPITALITY,
HEALTHCARE/SCIENCE, MANUFACTURING AND METALS, PROCESS, PUBLIC SECTOR,
SERVICE, TEXTILES AND APPAREL.
Additionally, VerticalNet provides auctions, catalogs, bookstores,
career services and other e-commerce capabilities horizontally across
its communities with sites like Industry Deals.com, IT CareerHub.com,
LabX.com, Professional Store.com. VerticalNet's NECX Exchange provides
an exchange for the electronic components industry.
This announcement contains forward-looking statements that involve
risks and uncertainties, including statements relating to the value of
VerticalNet's investment in Tradex Technologies (Ariba's common stock)
as well as statements that are preceded by, followed by or include the
words "believes," "plans," "intends," "expects," "anticipates," or
similar expressions. For such statements, VerticalNet claims the
protection of the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from the results predicted, and reported
results should not be considered as an indication of future
performance. Factors that could cause actual results to differ from
those contained in the forward-looking statements include the
possibility that the market price of Ariba, Inc. will change from its
level on March 20, 2000, the possibility that the conversion ratio
used to determine the number of shares of Ariba, Inc. into which
shares of Tradex Technologies convert is different from the estimate
provided in the Information Statement that Tradex Technologies
provided to its shareholders in February 2000, as well as those
factors set forth in VerticalNet's Annual Report on Form 10-K for the
period ended December 31, 1998 and VerticalNet's Quarterly Report on
Form 10-Q for the quarter ended September 30, 1999, both of which have
been filed with the SEC.
VerticalNet is the registered trademark of VerticalNet, Inc. All
other names are trademarks and/or registered trademarks of their
respective owners.
CONTACT: VerticalNet, Inc.
by
PepperCom
Media Contact:
Peter Harris, 212/931-6112
pharris@peppercom.com
or
VerticalNet, Inc.
Corporate Contact:
Muriel Lange, Director Investor Relations, 215/315-3367
mlange@verticalnet.com |
