XCIT---this A.M. Excite and BT Announce Major UK Internet Initiative
REDWOOD CITY, Calif., and LONDON, Nov. 25 /PRNewswire/ -- Excite, Inc. (Nasdaq: XCIT - news) and London-based BT today announced that they have reached an agreement for BT to buy a 50 percent share in Excite, Inc.'s subsidiary, Excite UK. This $10 million investment in the $20 million subsidiary is the first time such a close and active relationship between a UK company and a major US Internet portal has been forged.
The agreement will further develop BT's presence in Internet advertising and transactions -- two major online revenue generators -- complementing its expertise in Internet access. It also brings the benefits of Excite's considerable Internet technology and, specifically, its online marketing and sales expertise.
Excite UK will benefit through better access to one of Europe's most important and fastest growing markets and BT's expertise in further localizing its product to the UK market.
Excite UK, in providing Excite, Inc.'s Internet and other services in the UK, offers new and experienced Internet users a personalized and content-rich starting point on the Web. This includes 12 content areas covering subjects such as news, music and sport, plus advanced search technology, free Web-based e-mail, communities and online shopping. Excite offers advertisers access to a significant number of Web users, as well as to considerable technical expertise in areas such as advertisement display and online marketing.
John Swingewood, BT Internet and Multimedia director, said: ''Taking a 50 percent share in Excite UK demonstrates BT's commitment to the Internet industry and underlines our ambition to help grow the market and further improve our position within it. BT has already announced a number of industry alliances and will continue to seek out further strategic partnerships.
''BT has been very successful in offering internet access services and Excite UK further extends our reach into the important advertising and transactional sectors. Together, Excite, Inc. and BT will continue to grow the Excite UK brand and develop the 'must-have' Internet service for the UK.''
''Our joint venture with BT continues our international strategy of choosing the best local partner in each market where we want to establish our business,'' said George Bell, CEO of Excite, Inc.
''Our expertise in providing compelling, personalized content, married with BT's established reputation with UK consumers, enables us to create a joint venture with Excite UK that has the potential to take a leading position in the growing UK Internet market. The UK joint venture follows Excite's existing international joint ventures in Australia, Japan and Italy with leading local companies in each market.''
In addition, Excite UK is marketing Excite Click, powered by BTClick, a combined pay-as-you-surf UK Internet access service and Web guide. This service requires no registration or monthly subscription and is featured immediately on the Excite Web site (www.Excite.co.uk).
BT offers a range of consumer Internet and interactive multimedia services including BT Internet; premium content through the joint venture company, LineOne; current and forthcoming innovative online services through BT Click+, multimedia kiosks and ''Open,'' the interactive TV service provided by BiB (British Interactive Broadcasting).
About Excite
Excite, Inc. is a global Internet media company that attracts over 19 million unique consumers monthly to its flagship portal services, excite.com and webcrawler.com, and specializes in the delivery of highly targeted marketing solutions through its subsidiary MatchLogic, Inc. The Excite brand is now recognized by more than 50 million Americans, and the company is recognized as the fastest growing portal site by Web standard Media Metrix (7/98). Excite personalized services are available in nine countries; the company has joint ventures with Itochu for Excite Japan, Liberty One for Excite Australia and a pending joint venture with Telecom Italia for Excite Italy. Excite, Inc., founded in 1994, is based in Redwood City, Calif.
For more investor information on Excite, please call our shareholder services hotline at 888-924-XCIT (9248).
(Unique user and brand recognition statistics quoted are from, respectively: Relevant Knowledge, Opinion Research Corp.)
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including and without limitations: the successful integration of BT's Internet presence with Excite UK; the acceptance by consumers of enhanced Excite UK functionality; general economic conditions; and other risks detailed in the company's annual report on Form 10K for the year ended December 31, 1997 and its other reports filed with the SEC.
About BT
BT's Internet & Multimedia Services provides a broad range of on-line services for consumer and business use. Its product portfolio includes:
* BT Internet -- providing a range of Internet services
* Click+ -- pay-as-you-surf Internet service with no registration, fixed
term contracts or monthly subscriptions
* Talk21 -- free email address service
Other joint venture initiatives include:
* LineOne -- a Web-based service offering Internet connection and online
UK focused content
* BiB -- providing "Open" digital interactive television services.
SOURCE: Excite, Inc.
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