Xcelera.com Responds to Lazard Freres Report
Grand Cayman, British West Indies - July 14, 2000 -- Xcelera.com Inc.(AMEX: XLA), an
Internet holding company, responds to the report issued yesterday by Lazard Freres & Co.
LLC as follows:
“Xcelera.com strongly disagrees with the conclusions drawn in the Lazard Freres July 13,
2000 report, which is based on faulty assumptions and a misconstrued valuation model.
Lazard’s valuation analysis applies an extraordinarily high 75% “discount rate” for Xcelera.com.
Additionally, the report completely dismisses investments from major technology companies,
specifically Exodus Communications, that were done after extensive due diligence and valued
Xcelera.com’s principal holding, Mirror Image, at approximately $4.25 billion at the time the
transaction was entered into, the equivalent of approximately $37.50 per Xcelera.com share,
without even counting Xcelera.com’s other assets.
Xcelera.com is particularly concerned that Lazard never informed the Company that it was
writing a detailed report on Xcelera.com and its portfolio. Xcelera.com would have welcomed the
opportunity to answer questions and correct any factual inaccuracies. Xcelera.com remains
confident in the technology and tremendous potential of the Mirror Image business, in which we
maintain our approximate 76% ownership stake, and the other companies in our portfolio.”
This statement was prepared for use on the Xcelera.com website.
About Xcelera.com Xcelera.com Inc., an Internet holding company, focuses on European
Internet companies, Internet infrastructure companies, B2B companies and companies that
provide their complete service and value proposition digitally on the Internet. The company is
actively expanding its portfolio of Internet companies. The company has controlling interests in
Mirror Image Internet, an Internet infrastructure company that speeds up the Web; deo.com, an
Internet music portal; MNW Records, Scandinavia's leading record company that plans to
produce music over the Internet; e-game.com, a leading developer and distributor of adgames;
Corechange, a leading Web- based infrastructure technology company focused on the B2B
market; Wideyes, an international Internet recruitment company focused on the European
marketplace; Active ISP, a leading European shared Web hosting company; Dynamic Imaging,
a leading image processing technology company focused on the global B2B image processing
market; HelpinHand, a leading Web- based technology company focused on the fast-growing
global wireless Internet market; and MarineProvider, a marine service Internet company focused
on the maritime industry. For more information, visit us on the Web at www.xcelera.com.
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