Hi KIm ... (BSNS WIRE) CAIS Internet -- Issuing IPO Today -- Seen as No Threat to C
CAIS Internet -- Issuing IPO Today -- Seen as No Threat to ClearWorks.net
Business Editors & Technology Writers
HOUSTON--(BUSINESS WIRE)--May 20, 1999--As a response to investor
inquiries, ClearWorks.net (OTC BB:CLWK) announced today that CAIS
Internet (Nasdaq:CAIS), which announced its initial public offering
today, represents no real competition to ClearWorks.net. CAIS Internet
reportedly expects to sell 6 million shares at $19 per share, raising
$114 million.
In its February 22nd filing with the Securities and Exchange
Commission, CAIS Internet stated that it had installed its OverVoice
technology in over 1,900 apartment units in 15 multiple dwelling unit
buildings and in over 1,900 guest rooms in eight hotels. While this is
certainly significant, ClearWorks.net wants to distinguish that it
operates in several areas in addition to high-speed Internet access
provided by CAIS, and has already announced over 3,000 homes under
contract for its services. ClearWorks.net also expects to make several
new contract announcements this quarter.
Instead of just offering higher than average speed Internet
access to hotel guests and apartment dwellers through its HyperDSL
service, ClearWorks is offering complete Bundled Digital Service
packages with over 10 times faster Internet access than CAIS to
single-family homes, multi-family dwellings, businesses and hotels.
CAIS Internet's technology enables it to offer its users
dedicated high-speed Internet access through an Ethernet local area
network. According to CAIS Internet's S-1 registration statement, this
technology enables Internet access at up to 300 times faster than
standard 28.8-kilobit-per-second modems. ClearWorks.net clients, by
comparison, get Internet connections at a bi-directional speed of up
to 100 megabits per second, which is 2,000 times faster than with a
56k modem dial-up connection.
"Unlike CAIS Internet, ClearWorks.net Residential Services works
in conjunction with developers to build an all fiber-optic network
into new subdivisions, with fiber-optic cable all the way to the
consumer, thus effectively solving the last mile problem. This enables
us to offer super-fast Internet connections, with almost unheard of
speed," explains Michael McClere, CEO of ClearWorks.net.
ClearWorks.net pre-wires every house in the neighborhood for a
full complement of bundled digital services, including high-speed
Internet access. Residents in ClearWorks-wired neighborhoods get
digital telephone service with all the add-ons like voice mail, caller
ID, etc. They also get digital cable TV with absolutely no channel
limitations, on-demand video and game rentals, closed-circuit security
capabilities, a community Intranet and much more, all from one
company.
According to a Forrester Research, "For bundling to work, service
providers need to build packages that reflect consumers' price
sensitivity. 64% of consumers state that price is the most important
criterion for selecting a service provider."
That's why ClearWorks is pricing its services very aggressively,
at least 50% lower than if purchased separately from individual
service providers. This will give ClearWorks and the participating
builders an additional competitive advantage.
ClearWorks sees its future as very promising. All of its research
and development costs are already behind it. By being the first to
develop this type of proprietary technology and bring it to the
marketplace, the company should quickly gain a very strong competitive
advantage that may take a very long time to overcome. The company's
goal is to own the brand when it comes to bundled digital services.
The initial response to ClearWorks' services has been tremendous.
According to Al Brende at Land Tejas Development, the development
company working with ClearWorks.net to wire Canyon Gate subdivisions
in Houston, "The addition of ClearWorks' bundled services to our homes
has helped us exceed our new home sales goals by 450 percent within
the first few months. This was exceptional, because in January
Houston's new home sales dipped 11% compared to 1998."
Certain statements in this release are forward-looking. Although
ClearWorks Technologies Inc. (the Company) believes its expectations
are based on reasonable assumptions within the bounds of its knowledge
of its business and operations, there can be no assurance that actual
results will not differ materially from its expectations. Merger
Communications (Merger) is a media relations firm employed by the
Company. Statements and opinions presented here represent the views of
the Company, not Merger, as the release is based on information
provided by the Company. Merger and the Company believe that all
information in this release has been obtained from sources considered
reliable, but cannot guarantee that the statements presented herein
are accurate or complete. Merger's compensation for its media
relations services consists of a fee and stock. Merger can have a long
position in the securities of the companies in which it distributes
information for media use, and may be buying or selling securities in
the course of its regular business.
--30--SCP/ho*
CONTACT: Merger Communications
David Drake, 713/267-2328
KEYWORD: TEXAS
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS REAL ESTATE
INTERACTIVE/MULTIMEDIA/INTERNET TELECOMMUNICATIONS
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