Friday January 7, 9:25 am Eastern Time
Company Press Release
biz.yahoo.com
THCG Penetrates Internet-Based TSP/ASP Marketplace
THCG and THCG Venture Partners I Acquire 33% Stake in IT Utility
NEW YORK--(BUSINESS WIRE)--January 7, 2000-- THCG, INC. (NASDAQ: THCG - news) today announced that it has formed a strategic alliance with an Internet-based Total Solution Provider / Application Service Provider (TSP/ASP) company, IT Utility. THCG and its venture funding vehicle, THCG Venture Partners I LLC, have acquired a 33% stake in the company. IT Utility, Inc., based in Atlanta, Georgia, offers a complete, Internet-based, thin-client, server-centered information systems outsourcing service to small and mid-size companies.
Pursuant to the alliance arrangement, THCG arranged for approximately $2.3 million of capital to support IT Utility's growth, provided through THCG's venture funding vehicle, THCG Venture Partners I LLC, for an approximate 23% ownership stake in IT Utility. In addition, THCG, which provided IT Utility with its initial seed capital, will provide IT Utility with an array of Venture Development and Venture Banking services, for an approximate 10% ownership stake in the company. These services include strategic planning, operations planning, marketing and branding, interim management, marketplace execution, financial advisory, capital raising and other related services. Two THCG senior managers have been appointed to IT Utility's Board of Directors.
Michael Gegenheimer, Co-Head of THCG's Venture Development arm, said, ``With the recent announcements from Microsoft (NASDAQ: MSFT - news), IBM (NYSE: IBM - news) and Cisco (NASDAQ: CSCO - news), among others, designating the TSP/ASP space to be of strategic importance, it became apparent to us that THCG must have significant stakes in this new and dynamic frontier. We are excited to begin working with a young company such as IT Utility, which could become a major player in its targeted marketplace small to mid-size companies. IT Utility has put together a strong management team to execute the Company's strategy, and we have full confidence in this team's ability to take the Company to the next level.'
Mike Lowry, Chief Executive Officer of IT Utility, commented, ``We are delighted to welcome THCG as partner, shareholder and member of our Board of Directors. THCG's Internet venture focus, industry insight, experienced team of professionals and financial strength will jump start our business creation process and assist us in establishing a leadership position in this booming market.'
About THCG
THCG is a global Internet business creation firm providing venture development, venture banking and venture funding products and services. THCG's mission is to build dominant companies by partnering with leading Internet entrepreneurs and traditional brick and mortar companies migrating to the Internet. THCG has equity interests in a client portfolio of Internet-related companies including ETRAVNET.COM, Inc. (OTC BB: ETVT - news, www.travnet.com - news), iBeauty.com (www.ibeauty.com), Interleaf, Inc. (Nasdaq:LEAF - news, www.interleaf.com - news), IT Utility, Inc. (www.itutility.com), LogNet Systems Inc. (www.lognet.co.il) and TechOnLine, Inc. (www.techonline.com). THCG also has equity interests in more than 10 additional Internet-related companies, including RealTimeImage Inc. (www.realtimeimage.com), SoftWatch Ltd. (www.softwatch.com), SunShine Media Corporation (www.bikini.com) and webMethods, Inc. (www.webmethods.com). THCG's web site is located at www.thcg.com.
About IT Utility
IT Utility fundamentally changes the business basis for acquiring information systems, by providing a high function, cost effective end-to-end service alternative to the traditional information technology infrastructure. IT Utility's Alternative Information Service Architecture (AISA) directly addresses the core management issues surrounding information technology: cost, expansion, and functionality. AISA delivers state of the art, expandable functionality to all enterprise users. These benefits come at a significantly lower cost than purchasing, managing, and maintaining traditional technology infrastructures. For further information contact Mike Lowry, CEO, at 770-777-8678.
``SAFE HARBOR' STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the Company's entry into new commercial businesses, the risk of obtaining financing, risks associated with start-up and early stage enterprises, risks associated with providing services over the Internet, and other risks described in the Company's Securities and Exchange Commission filings. |
