Compaq and CMGI Announce Close of
Strategic Internet Alliance Agreement
HOUSTON and ANDOVER, Mass.--(BUSINESS WIRE)--Aug. 19, 1999-- Compaq Computer Corporation
(NYSE:CPQ - news)
Editor's Summary:
CMGI acquires majority stake in AltaVista; Compaq becomes largest outside shareholder in CMGI
-- Compaq and CMGI move quickly to implement strategic partnership
-- CMGI and AltaVista begin integration and build-out of AltaVista
Compaq Computer Corporation (NYSE:CPQ - news), a top global supplier of information technology
systems and solutions and worldwide PC leader, and CMGI, Inc. (Nasdaq:CMGI - news), the leading
diversified Internet operating company, today announced the completion of CMGI's acquisition of a
majority stake in AltaVista and Compaq's position as the largest outside shareholder in CMGI effective
August 18, 1999. The two companies announced a comprehensive strategic alliance June 29 that
enables both companies to aggressively pursue cooperative Internet-related business and market
opportunities.
''Our partnership with Compaq marks an important milestone in the development of the Internet
marketplace,'' said David Wetherell, CMGI Chairman and Chief Executive Officer (CEO). ''Together, we
will lead the consumer and enterprise market from PC to Web, combining Compaq's worldwide
leadership in consumer and enterprise computing with CMGI's network of leading Internet destinations
and technologies. In addition, the integration and build-out of AltaVista is on schedule and represents a
very real opportunity for significant growth through the integration of various CMGI related services.''
''The Internet is rapidly becoming the backbone of business; it's truly the most fundamental change in
information technology since the invention of the PC,'' said Michael D. Capellas, Compaq President and
CEO. ''The strategic partnership with CMGI will dramatically enhance Compaq's Internet position and
enable us to offer the most compelling Internet-enabled products, solutions and services to our
customers.''
The Compaq and CMGI partnership is aimed at providing the best Internet services and solutions to
businesses and consumers. Through the technologies and services of CMGI's affiliated companies and
NonStop® eBusiness solutions from Compaq, both companies will be able to offer more compelling
Internet services and solutions to small and medium businesses as well as large enterprises. The
alliance will lead Internet innovation in the PC market by capitalizing on Compaq's consumer PC
leadership position and CMGI's network of leading Internet destinations and enabling technologies.
The two companies are moving quickly to take advantage of key business and integration opportunities
made possible by the alliance. Recent examples include:
Raging Bull (TM), an ''at''Ventures company and the Web's most innovative and dynamic
financial community, recently entered a strategic alliance with AltaVista to connect AltaVista
Finance users with Raging Bull's established network of more than 220,000 investors to provide a
rich resource for financial information
Compaq and Engage Technologies, Inc (Nasdaq:ENGA - news) a provider of profile driven Internet
marketing solutions and majority-owned subsidiary of CMGI, recently entered a far-reaching
partnership to deliver Internet-related marketing services to Compaq's customers worldwide.
Compaq will deploy Engage Precision Profiling and Accipiter AdManager technology to enhance
Compaq's Internet-based marketing initiatives, including providing individually tailored
relationships for Compaq customers, and provide additional products and services to customers.
In addition, Compaq has made an investment in Engage.
Compaq and Ancestry.com, Inc., the ''at''Venture affiliate premier online resource for connecting
and strengthening families, recently entered a joint initiative designed to broaden e-commerce
opportunities for both companies. The alliance will make Compaq the premier PC vendor on the
MyFamily.com and Ancestry.com Web sites and allow Ancestry.com, Inc. to broaden its
member base through joint marketing programs. A co-branded Web page will be created linking
Ancestry.com and MyFamily.com with Compaq.com.
Compaq will expand its leadership in delivering Internet innovation by expanding the built-in
Internet keyboard capabilities across all end-user product lines and by leveraging CMGI Web
destinations including AltaVista.
CMGI has begun a comprehensive integration review with AltaVista and expects to announce a series of
CMGI related integration deals over the coming months. In addition, CMGI will collaborate with
Compaq's world-class research labs and business groups to develop innovative Internet technologies
and next generation Internet appliances. This collaboration will include continued development of
advanced search technologies for AltaVista.
Through the transaction, Compaq transferred 83.0 percent equity ownership in AltaVista to CMGI.
Compaq retained 17.0 percent equity ownership in AltaVista and continues to hold a Board seat. In
return, Compaq received 19.0 million CMGI common shares, CMGI preferred shares equivalent to 1.8
million CMGI common shares and a $220 million three-year note to Compaq. Compaq also is taking a
seat on the CMGI Board of Directors and plans to announce its nominee for this new position shortly.
Compaq Background
Compaq Computer Corporation, a Fortune Global 100 company, is the second-largest computer
company in the world and the largest global supplier of computer systems. Compaq develops and
markets hardware, software, solutions, and services, including industry-leading enterprise computing
solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions,
commercial desktop and portable products and consumer PCs. The Company is an industry leader in
environmentally friendly programs and business practices.
Compaq products are sold and supported in more than 100 countries through a network of authorized
Compaq marketing partners. Customer support and information about Compaq and its products are
available at compaq.com.
CMGI Background
A recognized leader in the Internet economy, CMGI, Inc. (Nasdaq:CMGI - news) has built a substantial
base of Internet operating companies and, through its ''at''Ventures affiliates, has invested in a growing
portfolio of synergistic Internet enterprises which enhance the value of its core holdings. This unique
method of generating equity for its shareholders is what CMGI calls ''creating net value.'' Microsoft, Intel
and Sumitomo hold minority positions in CMGI.
CMGI's majority-owned subsidiaries include Engage (Nasdaq:ENGA - news), Activerse, Adsmart, iCast,
Magnitude Network, NaviSite, NaviNet, Planet Direct and ZineZone. The company's ''at''Ventures
affiliates have ownership interests in Lycos, Inc. (Nasdaq:LCOS - news), Critical Path (Nasdaq:CPTH -
news), Silknet (Nasdaq:SILK - news), Chemdex (Nasdaq:CMDX - news), Advoco.com, Ancestry.com,
Asimba, AuctionWatch, Aureate Media, blaxxun, BizBuyer.com, buyingedge.com, CarParts.com,
eCircles.com, Furniture.com, HotLinks, KOZ.com, MotherNature.com, NextMonet.com,
NextPlanetOver.com, OneCore.com, ONElist, Productopia, Promedix.com, Raging Bull, Softway
Systems, Speech Machines, ThingWorld.com, Universal Learning Technology, Vicinity, Virtual Ink and
Visto.
CMGI is also the majority-owner of SalesLink, InSolutions and On-Demand Solutions, leaders in direct
marketing, fulfillment and turnkey arenas. CMGI Corporate headquarters is located at 100 Brickstone
Square, Andover, MA 01810. Telephone: 978-684-3600. Fax: 978-684-3814. Additional information is
available on the company's Web site at cmgi.com.
AltaVista Background
AltaVista Company is the premier online media and commerce network. The company integrates unique
Internet technology and services to deliver relevant results faster for both individuals and Web-based
businesses. By combining distinctive AltaVista brand services with ''best of the Web relationships,'' the
AltaVista Network creates the most satisfying Internet experience.
AltaVista is building on its heritage of technology and innovation leadership, offering award-winning
services including: My AltaVista, AltaVista Finance, The AltaVista MicroPortal/FreeAccess service
(http://www.microav.com), AltaVista Search, AltaVista Local Portal Services, and AltaVista's
Shopping.com. For more information, visit AltaVista at altavista.com.
This release contains forward-looking statements based on current expectations that involve a number of
risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ
materially include the failure of systems associated with order fulfillment, the failure to close certain
sales contemplated prior to the end of the third quarter 1999; changes in product mix; inventory risks
due to shifts in market demand; continued competitive factors and pricing pressures; and market
responses to pricing actions and promotional programs. Further information on the factors that could
affect Compaq's financial results are included in its SEC filings, including the annual report on Form
10-K for the year ended December 31, 1998, and the quarterly report on Form 10-Q for the quarter
ended June 30, 1999. Compaq, Registered U.S. Patent and Trademark Office. Product names
mentioned herein may be trademarks and/or registered trademarks of their respective companies.
Forward looking statements made by CMGI in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Act. Investors are cautioned that actual results could differ
materially from those anticipated by such statements and are advised to consult CMGI's current SEC
filings for additional information concerning risk factors that affect the Company's business.
NOTE TO EDITORS: The word ''at'' before the company ''at''Ventures stands for the ''at'' symbol.
Contact:
Compaq Computer Corporation
Alan Hodel, 281/518-8932
alan.hodel@compaq.com
or
CMGI
Diedre Moore, 978/684-3655 |
