Everyone watch CITN, it has been a favorite lately, BIG news today should move it higher, more to come-
(COMTEX) B: How2.com Receives $36.5 Million in Private Equity Led by
B: How2.com Receives $36.5 Million in Private Equity Led by TH Lee.Putnam
Internet Partners, With Co-Investors Dain Rauscher Wessels, Watershed Capital
and Seaboard Ventures
DALLAS, Mar 20, 2000 (BUSINESS WIRE) --
Capital Infusion and Strategic Relationships to Fuel Accelerated
Expansion of First B2B Software Solution for Post-Purchase Customer
Care
How2.com, a leader in online post-purchase customer care solutions,
announced today that it has received $36.5 million in new private
equity financing from four investors led by TH Lee.Putnam Internet
Partners (THLi). Co-investors are Dain Rauscher Wessels Investors LLC,
Watershed Capital and Seaboard Ventures. The investments will be used
to expand How2.com's proprietary Internet-based solution, which
optimizes and redefines post-purchase customer care processes for
retailers, manufacturers and service organizations. How2.com is a
subsidiary of CT Holdings Inc. (NASDAQ: CITN), an early stage B2B
Internet incubator.
How2.com is the first and only fully integrated B2B provider of online
post-purchase technology for rebate processing, extended warranties and
product manuals and information. Its technology will, for the first
time, allow retailers, manufacturers and service organizations to
optimize and improve an important element of supply chain management:
increasing customer satisfaction, brand loyalty and revenue enhancement
after the purchase has been made.
How2.com currently provides its online rebate solution to more than 125
clients, including such nationally-known companies as Staples,
Microsoft, Ameritech, Pacific Bell, Southwestern Bell, Asante
Technologies, BrandsMart USA, and Microtek.
How2.com also has a multi-year contract with GE Warranty to provide an
online sales channel for extended warranties.
Steve Solomon, chairman and chief executive officer of How2.com, said,
"How2.com has seen terrific momentum in the first quarter of 2000.
Transactions will almost double those in the fourth quarter of 1999 as
we continue to increase the number of rebate promotions we manage. Our
patent pending online technology allows us to reinvent post-purchase
processes, making them more efficient and enabling them to provide
value-added byproducts such as data mining, customer loyalty and new
revenue opportunities. We are committed to providing leading edge
technology to offer a revolutionary product offering to our clients."
"Post purchase customer care is rapidly emerging as a key market
opportunity," said Douglas Hsieh, vice president of THLi. "We're
excited to be investing in a market leader with a strong first-mover
advantage. How2.com is positioned to dominate a critical part of the
e-business infrastructure."
David Lundeen, managing partner of Watershed Capital and a How2.com
director, commented, "How2.com applies Internet technology to solve a
real business problem. Their full solution will lower costs, increase
revenue and rapidly generate goodwill among customers. The How2.com
model can dramatically and favorably change the relationship between
retailers, manufacturers, service organizations and their customers."
"Based on current positive business developments, How2.com has also
decided to withdraw its current S-1 filing with the Securities and
Exchange Commission and plans to refile," Solomon added.
About How2.com
How2.com (http://www.how2.com), a subsidiary of CT Holdings, Inc.
(NASDAQ: CITN), was founded in 1999 and is headquartered in Dallas with
offices in Silicon Valley and Los Angeles. It has approximately 340
employees. How2.com is a provider of online, outsourced post-purchase
customer care services. The company seeks to enable retailers,
manufacturers and service organizations to enhance their customer
relationships through its post-purchase customer care services, which
include rebate processing, extended warranty sales, data mining, and
other related services. Through its online services, the company seeks
to create additional revenue opportunities, greater brand loyalty, as
well as lower marketing and operating expenditures, for its business
clients.
About TH Lee.Putnam Internet Partners
TH Lee.Putnam Internet Partners, L.P. (THLi) is a private equity fund
that invests in Internet-related businesses with high-growth strategies
in e-commerce and Internet services, with a focus on B2B, B2C,
distribution/logistics, and commerce-enabling technologies. THLi's
portfolio companies include FaceTime Communications, HomePoint.com,
Krause's Furniture, Submarino.com, WhatsHotNow.com, and Wine.com.
Headquartered in New York with offices in San Francisco, Boston and
London, THLi's owners include Thomas H. Lee Company, one of the most
successful private investment firms in the U.S., and Putnam
Investments, a leading money management firm.
About Watershed Capital
Watershed Capital is a private equity firm that actively invests and
participates in technology-enabled companies with special emphasis in
the areas of networking, IT services, wireless technology and
e-commerce. Watershed's portfolio companies include Netpliance,
Mercata, @mobile, Agillon, Angaros, Epic Realm and Foodtrader.com. The
company conducts business internationally through its principal offices
in Mountain View, California; Austin, Texas; and Seattle, Washington.
About Dain Rauscher
Dain Rauscher Wessels Investors LLC is a Delaware limited liability
company that is affiliated with Dain Rauscher Incorporated, securities
broker-dealer. Through its Dain Rauscher Wessels division, Dain
Rauscher Incorporated provides investment banking services and equity
research, trading, and sales to a large number of corporate and
investing clients, focused primarily on five industry sectors,
consumer, energy, financial services, health care and technology.
About Seaboard Ventures
Founded in 1992, Seaboard & Co. provides private equity and asset
management. With offices in Charleston, SC and Baltimore, MD, Seaboard
Ventures, LLC invests private equity in a host of industries, including
finance and Internet-based and other technology-related businesses.
Having a number of successful firms in its portfolio, Seaboard Ventures
is focused on selective long-term investing and the alignment of
interests with entrepreneurs and growth companies. Seaboard & Co.,
through its constituent funds, manages fixed income investments for
both U.S. and international institutions.
About CT Holdings
CT Holdings is an incubator for early stage B2B companies
(www.ct-holdings.com ). CT Holdings' Internet subsidiary How2.com
(www.how2.com ) provides online, outsourced post-purchase customer care
solutions.
Forward-Looking Statements: This news release contains forward-looking
statements, which involve risks and uncertainties. Accordingly, no
assurance can be given that the actual events and results will not be
materially different than the anticipated results described in the
forward-looking statement. There are a number of important factors that
could cause actual results to differ materially from those expressed in
any forward-looking statements. These factors include uncertainties
related to the closing of the proposed financing, integration of the
business and operations of acquired companies; and the availability of
capital on terms acceptable to the Company. Investors are also directed
to consider other risks and uncertainties discussed in documents with
the Securities and Exchange Commission.
CT Holdings undertakes no obligation to publicly release the result of
any revisions to these forward-looking statements, which may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Copyright (C) 2000 Business Wire. All rights reserved.
Distributed via COMTEX.
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