CMGI recommitment to NAVI: "CMGI Reinforces Commitment to NaviSite":
biz.yahoo.com
Friday December 1, 10:21 am Eastern Time
Press Release
CMGI Reinforces Commitment to NaviSite
ANDOVER, Mass.--(BUSINESS WIRE)--Dec. 1, 2000--CMGI, Inc. (Nasdaq: CMGI
- news) Chairman and CEO David Wetherell today reiterated CMGI's continued
support of its NaviSite, Inc. (Nasdaq: NAVI - news) majority-owned subsidiary, and announced that the company expects
to accelerate its previously announced $80 million funding of NaviSite, subject to the negotiation of terms and conditions.
CMGI previously increased its original financing commitment to NaviSite from $50 million to $80 million in order to
compensate for any loss of funding NaviSite might experience from its institutional lenders. As discussed in CMGI's
recent financial guidance disclosures, the $80 million advance to NaviSite is reflected in CMGI's projections for fiscal
2001.
Negotiation of terms for the advance has begun and the parties expect to announce a definitive agreement to provide the
financing within the next two weeks.
NaviSite is a majority-owned operating company founded by CMGI in 1997, and a leading provider of outsourced Web
hosting and application services for companies conducting mission-critical business on the Internet.
``The business metrics for NaviSite continue to exceed expectations,'' stated Wetherell, ``particularly as NaviSite
increases its focus on large and middle-market enterprise customers. The managed services sector in which NaviSite now
operates is one of the brightest and most promising sectors in the Internet marketplace today, and CMGI remains
committed to helping NaviSite reach its full potential as a leader in this sector.''
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