U.S. College Student Community Signs Term Sheet for Virtual
Communities Inc.-- VCIX -- 90 Day CMS Solution
NY-Based Company is Fifth Client in as Many Months to Sign Term Sheet for VCIX
Turnkey Solution
NEW YORK--(BUSINESS WIRE)--March 21, 2000-- Virtual Communities Inc. (Nasdaq: VCIX - news), provider of turnkey solutions for the development and
management of web-based communities, today announced that a start-up company, backed by the principals of Vornado Realty Trust, New York's Cayre family, and the
two largest on- and off-campus college apartment owners in the U.S., has signed a Term Sheet to acquire VCIX's fully integrated technology and service solution to create
and power its college-student community. Further details of the site were not released. The Term Sheet calls for VCIX to create a comprehensive web-based community in
90 days using its Community Management Solution (CMS), which includes VCIX's Cortext(TM) content publishing software, robust e-commerce integration, auctions,
chat, instant messaging, forums, and a host of other features.
Pursuant to the Term Sheet, VCIX expects to receive $600,000 in cash with the option to convert up to $250,000 of that amount into an equity position in the new venture.
VCIX will also receive continuing payments for ongoing technical support services and maintenance of the community. Although the Term Sheet is non-binding, VCIX
expects to sign a final agreement within 30 days.
CMS, developed by VCIX after building numerous online communities, currently offers clients a comprehensive technology and service solution, including scalable content
management and publishing software, community design and development services, and best-of-breed community retention features. Using this solution, VCIX is able to
build robust web-based business-to-business and business-to-consumer communities for its clients within 90 days. This newest community represents the fifth CMS client
to sign a term sheet with VCIX since the offering was announced in November 1999, and the tenth online community overall that VCIX is developing.
``We are delighted that a community developer in the exploding college marketplace has chosen CMS as their community ASP,' said Avi Moskowitz, CEO of VCIX. ``Our
selection demonstrates the strong market demand for a faster, better and more cost-effective means to building a robust, scalable online community.'
Virtual Communities Inc. markets its proprietary Community Management Solution (CMS) to organizations interested in building their own web-based
business-to-business and business-to-consumer communities. CMS, developed by VCIX after building numerous online communities, offers these customers a complete
single-source solution, including VCIX's Cortext(TM) content management and web publishing software, cutting-edge e-commerce technology, interactive features, and
community design and development services. |
