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Redwood City, Calif., October 5, 1999 – NetObjects, Inc. (NASDAQ:NETO) today announced that it has signed a definitive agreement to acquire Sitematic Corporation for approximately $14.7 million. Sitematic’s online applications and services allow small businesses to create a web site, e-commerce catalogs and stores, and include web site hosting, domain name and search engine registration, customer management and promotion resources. Sitematic reaches small businesses by partnering with major brand name companies, such as OfficeMax, US West and Sir Speedy, that need to offer online services to enhance their customer relationships.
Under the terms of the agreement NetObjects will acquire 100 percent of Sitematic in exchange for 2 million shares of common stock and $1.5 million in cash, for an approximate total value of $14.7 million. NetObjects also will issue options to purchase 269,000 shares of common stock to replace Sitematic employee options and, options for 500,000 additional shares will be offered to continuing employees of Sitematic. The acquisition will be accounted for as a purchase and is expected to close this month. After the acquisition, Peter Shaw, CEO and president of Sitematic will become executive vice president of corporate development at NetObjects, and Steve Mitgang, senior vice president of marketing and business development will become executive vice president of small business and corporate marketing at NetObjects.
“With the acquisition, NetObjects becomes the first company to offer online and desktop web site applications to bring small businesses online,” said Samir Arora, CEO and president of NetObjects. “The combination of our two companies will revolutionize the way small businesses get online and do business online.”
“NetObjects has created an exceptionally loyal customer base with over 500,000 copies sold,” said Peter Shaw, CEO and president of Sitematic. “Together we can leverage the brand and combined applications and services to address the needs of the next wave of small business.”
About Sitematic
Sitematic Corporation is an Application Services Provider (ASP) that provides e-business solutions for small businesses. Sitematic offers a cost-effective, easy-to-deploy approach for small businesses that want to establish a strong, professional web presence with e-commerce capabilities. Recently released innovations include the first instant export to eBay for any item you sell in a Sitematic Store, and customer management through email list management. As part of its strategy, Sitematic works with corporate partners to offer server-based solutions to their customers. Current partners include US WEST, Taylor Made Golf, Tickets.com, Office Max, and Sir Speedy. Sitematic has won PC Magazine’s Golden Gavel Award for Most Promising New Product, PC Magazine’s Top 100 Web Sites and the LISA Award (Local Internet Service Award) for Best Vendor Application.
Sitematic can be used with AOL’s browser, and Microsoft's Internet Explorer and Netscape's Communicator on the Linux, Macintosh OS, Windows 98 and NT platforms. For more information or for a free trial, visit the company's web site at www.netobjects.com/sitematic/.
About NetObjects
NetObjects, Inc. (NASDAQ: NETO), majority owned by IBM (NYSE:IBM), is a leading provider of e-Business software and services that enable small businesses as well as large-scale enterprises to build, deploy and maintain Web sites on the Internet and corporate Intranets. The NetObjects product family includes NetObjects Fusion® and NetObjects Authoring Server Suite. In addition, NetObjects offers its customers on- line solutions, including content, products and services to help them register, host, build, maintain and promote their Web sites.
NetObjects has been ranked by Softletter 100, NewMedia 500 and as one of Fortune's 25 Very Cool Companies. Its products have won over 50 awards including Windows Magazine’s Win 100 award, InfoWorld's Analyst Choice award, CNET's Internet Excellence award, PC Magazine's Editors Choice award and InternetWorld's Industry Award. More information about NetObjects and its products can be found at www.netobjects.com.
For press inquiries contact:
Marnee Clement, NetObjects, Inc., (650) 482-3908, marnee@netobjects.com
For investor inquiries contact:
Julie Hawkins, NetObjects, Inc., (650) 482-5260, julie@netobjects.com
© 1999 NetObjects, Inc. All rights reserved. NetObjects is a registered trademark, and NetObjects Fusion and NetObjects Authoring Server are trademarks of NetObjects, Inc. All other brand and product names may be trademarks or registered trademarks of their respective companies.
This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements can be identified by the words "believes", "anticipates", "plans", "expects", and similar expressions. These forward-looking statements include, without limitation, statements about the market opportunities for web site building software and services, our strategy, and competition. These forward looking statements do not constitute assurances regarding our future operating results, including the impact of our acquisition of Sitematic Corporation upon our operations, cash flows, and financial condition. Our actual results could differ materially from those expressed or implied by these forward-looking statements due to various factors, including the risk factors described in our Form 10-Q filed with the SEC pursuant to the Securities Exchange Act of 1934. We undertake no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or relevant events occur in the future.
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