News January 11, 09:27 Eastern Time
THCG Venture Partners I Acquires Stake in Internet-based Test Preparation Service
NEW YORK, Jan 11, 2000 (BUSINESS WIRE) -- THCG, INC. (NASDAQ: THCG)
today announced that THCG VENTURE PARTNERS I ("THCG Ventures"), its
venture funding vehicle, has acquired a 12% stake in Test University,
Inc. ("TestU"), an Internet-based education company that intends to
provide interactive and customized online test preparation courses that
help students achieve superior results on standardized examinations,
such as SAT, ACT, GRE, CPA and many others.
Pursuant to the arrangement with TestU, THCG arranged for approximately
$3 million of capital, through THCG Ventures, to support TestU's
growth. THCG Ventures also committed to provide the Company up to an
additional $2 million of capital over the next 12 months. In addition,
THCG will provide TestU with an array of Venture Banking services to
support the execution of the Company's strategic plan. A senior manager
of THCG, designated by THCG Ventures, has been appointed to TestU's
Board of Directors.
Gary Anstey, Head of THCG's Venture Banking arm, said, "Test
University's vision is to be the dominant global brand recognized for
enabling anyone to successfully take a standardized test. We think this
is a classic case that demonstrates how the Internet changes business
as we know it. For a student preparing for a test, the ability to
control the timing and length of the test preparation process and the
level of intensity is very important. This is THCG's second involvement
with the Internet-based education space after TechOnline, Inc.
(www.techonline.com) which caters to the needs of electrical and design
engineers. TestU has put together an impressive management team to
execute the Company's strategy, and we are excited to join forces with
them in the new venture."
Yaron Eitan, Chief Executive Officer of TestU, commented, "We
approached THCG because of its Internet-focused vision, strategy and
resources. THCG's ability to provide growth capital to TestU through
its venture funding vehicle in such a short time frame was invaluable.
We are now focusing on executing our business plan - providing the
"ultimate learning environment" for test preparation. We look forward
to working with THCG on devising and executing a comprehensive funding
plan for Test University. The Company is expected to launch its
services within the next 60 days."
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, www.travnet.com), iBeauty.com (www.ibeauty.com),
Interleaf, Inc. (Nasdaq:LEAF, www.interleaf.com), IT Utility, Inc.
(www.itutility.com), LogNet Systems Inc. (www.lognet.co.il),
TechOnLine, Inc. (www.techonline.com) and Test University, inc. 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 Test University
Test University, Inc. is a test preparation service provided over the
Internet to help students achieve superior results on any standardized
examination. Test University was founded by a team of seasoned
entrepreneurs, educators, marketers, technologists and venture
capitalists to fully exploit the new demand for test preparation
services created by an increasingly achievement-oriented,
heavily-credentialed and information-based society. For further
information contact Ariel Galinski, Vice President, Corporate
Development, at (973) 785-1774.
"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.
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