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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (42692)	8/18/1999 8:15:00 PM
From: Anthony@Pacific	Read Replies (2) \| Respond to of 122087

IMAA<-----------1 to 2 years away from any benefit if ever there is one!!!!!!!!!! The site is a free site !!!IMPORTANT INFO....Please read this and UNDERSTAND IT!!!!!! By Marcelo Prince NEW YORK (Dow Jones)--Sometimes it's the giver, not the gift, that really counts. Just ask Information Management Associates Inc. (IMAA), whose shares have soared 110% since it disclosed late Thursday that a group lead by CMGI Inc.'s (CMGI) venture capital affiliate @Ventures was investing $10 million in Buyingedge.com, an auction Web site in which it holds a majority stake. The $10 million consists of $7.5 million from @Ventures and $2.5 million from Wand Partners, Amicus and Madrona Investment Group. In exchange for their cash, the venture funds received preferred stock representing about 29% of buyingedge.com's fully-diluted equity. In its quarterly earnings release, Information Management describes buyingedge.com as "a majority-owned subsidiary" and discusses other financing secured recently by the money-losing parent company. But the $10 million infusion is for the exclusive use of the Internet startup and isn't available to the parent company, according to Information Management's latest filing with the Securities and Exchange Commission, "The $10 million is to be used solely to fund the activities of buyingedge.com," the filing states. Brad Garlinghouse, general partner at CMGI's @Ventures, agreed, saying his firm's investment won't fund the operations of Information Management. Garlinghouse said buyingedge.com has effectively been spun off from its parent - it will relocate to Redmond Shores, Calif., from Shelton, Conn., and has its own board and equity structure - so "to call it a subsidiary is a stretch." "I think (Information Management) IMA wanted to make sure people were aware they are a major owner of this new legal entity, which from my point of view is a separate company," Garlinghouse added. Gary Martino, Information Management's chairman and Buyingedge.com's new chief executive, said buyingedge.com has essentially been spun off. But Information Management remains its largest investor - with about a 71% stake - and its quarterly results will still be reflected in the parent company's financial reporting, Martino said. Because of its ownership stake, Information Management would enjoy a financial windfall if the Internet venture, which currently Page 3 / 4 offers its services for free, succeeds and goes public, Martino added.