PEABODY, Mass.--(BUSINESS WIRE)--July 6, 2000--NECX.com LLC, a
wholly owned subsidiary of VerticalNet, Inc. (NASDAQ:VERT), announced
today that it has signed a definitive agreement to acquire American IC
Exchange ("AICE"), a privately held electronics exchange based in
Aliso Viejo, CA. NECX.com, one of the world's largest centralized
market makers for semiconductors, electronic components, computer
products and networking equipment, will integrate AICE's resources to
expand the capabilities of NECX's Global Electronics Exchange(TM), a
leading trading community for purchasing and materials management
professionals in the electronics and high technology industries.
Founded in 1990, AICE is a leading business-to-business
market-making exchange of commodity semiconductors and computer
products. In 1996, AICE was among the first in the industry to offer
an Internet-based pricing service, the RAMDEX(TM) index, for original
equipment manufacturing ("OEM") customers. RAMDEX(TM) is now a widely
recognized resource for real-time pricing information, market
commentary and analysis of DRAM, memory modules, CPU, flash memory,
and SRAM products. AICE specializes not only in selling memory
products, but also in understanding and resolving OEM inventory
issues. AICE is quoted daily in the Asian edition of the Wall Street
Journal for pricing in the DRAM spot market.
"We are delighted to welcome AICE's employees into the NECX
family," said Larry Marshall, President of NECX.com. "As early
adopters of Internet technology, the AICE team shares a common vision
with NECX.com for the future of the business-to-business marketplace.
The addition of AICE, and more specifically RAMDEX, will continue to
establish the Global Electronics Exchange as one of the premiere
Internet-enabled electronics exchanges and community resources
addressing the open market for high-tech professionals. The
acquisition of AICE will be complementary in terms of products
offered, customers, vendors and distribution infrastructures. These
synergies are expected to result in increased product liquidity that
will benefit the participants of the Global Electronics Exchange,"
concluded Marshall.
"Incorporating RAMDEX with the Global Electronics Exchange's
content-rich transaction capabilities will further solidify our
combined offerings as a leading resource for high-tech commodity
information," said Jim Binford, President of AICE. "As a result of the
acquisition, we will be able to leverage VerticalNet's, NECX.com's and
AICE's infrastructures and technologies to offer our customers one of
the most complete buy- and sell-side solutions in the electronics
market."
VerticalNet President and CEO Mark Walsh added, "This is clearly a
strategic addition to the VerticalNet portfolio. By leveraging AICE
and NECX.com's strong leadership positions and domain expertise in
electronics, our transaction and market-making operations are
significantly enhanced. We welcome AICE's employees, customers and
vendors into the NECX.com and VerticalNet(R) communities of commerce."
The consummation of the transaction is subject to typical closing
conditions including the receipt of third-party consents. Under the
terms of the agreement, AICE's employees will integrate into NECX.
AICE will continue to operate from Aliso Viejo, CA under the NECX
name.
About American IC Exchange
American IC Exchange (which recently changed its name to F&G
Capital, Inc.) (www.aice.com), is a global electronics market maker
specializing in the trade of commodity semiconductors, such as DRAMs,
flash memory and CPUs. In 1999, AICE transacted business with over
1,000 unique business partners. AICE launched RAMDEX(TM), its online
market index, in 1996 to give the original and contract equipment
manufacturing communities an efficient tool to remove the guesswork
from buying and selling on the global spot market. Today, AICE's
website is acknowledged as a leading content provider for
semiconductor market information and provides users with a variety of
services, including order tracking, customized product portfolios and
open market pricing information.
About NECX.com LLC
NECX.com (www.necx.com), a wholly owned subsidiary of VerticalNet,
Inc., operates the Global Electronics Exchange, a leading global
business-to-business exchange for electronics hardware. NECX.com
provides a high degree of market liquidity by aggregating supply and
demand from thousands of component, original equipment and contract
manufacturers, as well as from distributors and resellers. The
Exchange also provides comprehensive services such as procurement and
inventory management, trading, financial settlement, global logistics
and quality assurance. NECX.com, headquartered in Peabody,
Massachusetts, operates its Asian-Pacific business from Singapore and
its European operations from Galway, Ireland and Stockholm, Sweden.
About VerticalNet, Inc.
VerticalNet, Inc. (www.verticalnet.com) owns and operates 56
industry-specific Web sites designed as online business-to-business
communities, known as vertical trade communities. These vertical trade
communities provide users with comprehensive sources of information,
interaction and e-commerce. They are grouped into the following
industry sectors: COMMUNICATIONS, ENERGY, ENVIRONMENT/UTILITIES,
FINANCIAL SERVICE, FOOD/PACKAGING, FOODSERVICE/HOSPITALITY,
HEALTHCARE, HIGH TECH, INDUSTRIAL, MANUFACTURING/DISCRETE,
MANUFACTURING/PROCESS, PUBLIC SECTOR, SCIENCE and SERVICES.
Additionally, VerticalNet provides auctions, catalogs, bookstores,
career centers and other e-commerce capabilities horizontally across
its communities with sites like Industry Deals.com, LabX.com and
Professional Store.com. VerticalNet's NECX(R) Exchange provides an
exchange for the electronic components industry. Through Tradeum
technology and strategic alliances, VerticalNet is focused on
providing comprehensive end-to-end e-commerce solutions.
This announcement contains forward-looking statements that involve
risks and uncertainties, including statements relating to (i) the
belief that the acquisition will expand the capabilities of NECX's
Global Electronics Exchange; (ii) the expectation that the addition of
AICE and RAMDEX will continue to establish the Global Electronics
Exchange as one of the premiere Internet-enabled electronics exchanges
and community resources; (iii) the belief that the acquisition will be
complimentary to NECX and will result in increased product liquidity
to the Global Electronics Exchange; (iv) the expectation that
incorporating RAMDEX with the Global Electronics Exchange will
solidify the companies' combined offerings; (v) the belief that the
acquisition will allow the parties to leverage one another's
infrastructures and technologies to offer one of the most complete
buy- and sell-side solutions; (vi) the belief that AICE and NECX.com's
transaction and market making operations will be enhanced by the
transaction as well as; (vii) statements that are preceded by,
followed by or include the words "believes," "plans," "intends,"
"expects," "anticipates," or similar expressions. For such statements,
VerticalNet claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially
from the results predicted, and reported results should not be
considered as an indication of future performance. Factors that could
cause actual results to differ from those contained in the
forward-looking statements include the ability of the parties to
complete and close the acquisition, the difficulty in assimilating
American IC Exchange's operations and workforce, demand for the
combined entity's products/services, the increasingly competitive and
constantly changing environment for the products/services offered by
NECX.com and American IC Exchange, and potential technology
integration issues involved in assimilating American IC Exchange's
business (including RAMDEX) into NECX.com's exchange platform,
American IC Exchange's ability to retain and recruit qualified
personnel, as well as those factors set forth in VerticalNet's Annual
Report on Form 10-K for the period ended December 31, 1999 and its
quarterly report on Form 10-Q for the period ended March 31st, 2000,
both of which have been filed with the SEC. VerticalNet assumes no
obligation to publicly update or revise any of the forward-looking
statements that may be in the release.
VerticalNet and NECX are registered trademarks and/or trademarks
of Vert Tech LLC in the United States and/or other countries.
CONTACT: VerticalNet, Inc.
Muriel Lange, Director Investor Relations, 215/315-3367
mlange@verticalnet.com
or
For VerticalNet, Inc:
Peppercom
Jon Hershberg, 212/931-6147
jhershberg@peppercom.com
or
NECX.com LLC
Christine DeGraan, 978/538-8000
christine.degraan@necx.com
or
American IC Exchange
Jim Binford, 949/425-5005
jbinford@aice.com
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS INTERNET SOFTWARE
MERGERS/ACQ
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