EXHIBIT 99.1
Vsource Acquires Online Transaction Technologies; Auction and Marketplace
Capabilities Expand eProcurement Reach for Vsource
Ventura, California--October 5, 2000--Vsource Inc. (OTCBB:VSRC), developer of
Virtual Source Network (VSN), the pure Internet eProcurement application, today
announced that it has reached preliminary agreement to acquire Online
Transaction Technologies Inc. (OTT), a privately held company based in Los
Angeles that develops B2B public and private exchange solutions.
The acquisition will be for Vsource stock with a market value of $7 million.
"This new business combination is another major step in making Vsource the
premier provider of comprehensive pure Internet eProcurement solutions," said
Robert "Jay" McShirley, chairman and CEO of Vsource.
"Not only does OTT bring us new customers and proven products, but we also
benefit from the talent and experience of their principals, who developed
America Online's first auction site in 1996. Best of all, our customers will
benefit from the addition of Web-based auction and marketplace capabilities,
while Vsource gains added opportunities for revenue."
Online Transaction Technologies is an Application Service Provider (ASP) that
develops and hosts transaction solutions for public (many to many) and private
(one to many) exchanges. Among the solutions that OTT brings to Vsource is
LiquidMarketplace(TM), a complete suite of fully integrated transaction
solutions, including auctions, fixed-price catalogs and RFQ engines.
These solutions are identified as LiquidAuction(TM), LiquidCatalog(TM) and
LiquidRFP(TM). This suite allows public exchange clients to handle both seller-
and buyer-initiated transactions in their e-Marketplaces. OTT's private
exchange solution, LiquidStore(TM), offers private catalog and auction
functionality to LiquidMarketplace(TM) participants or stand-alone clients.
In addition to offering a complete suite, OTT has developed proprietary modules
and applications that reduce customization and deployment time and simplify
integration.
Exhibit 99.1
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About Vsource
Vsource, with headquarters in Ventura, provides the first transaction based,
pure-Internet solution for eProcurement.
Its flagship product, Virtual Source Network (VSN), allows companies to create
an Internet-based procurement system to automate all aspects of corporate
procurement, from strategic sourcing through procurement transactions, such as
material requisitions, requests for proposals (RFP) and requests for quotes
(RFQ), and direct order from supplier catalogs or contracts at substantial
savings.
VSN also supports a variety of private label and aggregated buying situations,
such as vertical markets and virtual communities.
Vsource, through relationships with IBM and Qwest, provides end-to-end
procurement services for the entire purchasing process, all via the Internet.
Through its Vsource national practice announced earlier this week, IBM Global
Services provides the VSN eProcurement solution to mid-size companies.
The IBM practice provides sales and services support for systems integration,
training for clients, and consulting, as well as language translation services
on VSN. Qwest is currently offering the VSN solution to its business customers
as part of its suite of business-to-business e-commerce products. For further
information, visit http://www.vsource.net or
http://www.magnumfinancial.com/vsrc.html.
Statements in this news release that relate to management's expectations or
beliefs concerning future plans, expectations, events and performance are
"forward-looking" within the meaning of the federal securities laws. Actual
results or events could differ materially from those anticipated in the
forward-looking statements due to a variety of factors, including, without
limitation, acceptance by customers of the company's products, changing
technology, competition in the market for purchasing management solutions,
government regulation, the company's limited operating history, general economic
conditions, and availability of capital.
CONTACT:
Magnum Financial Group LLC (Investors)
Rana Thomas, 213/488-0443
[email protected]
or
The Leavitt/Bell Group Inc. (Media)
Tiffany Massey, 626/564-9500, ext. 224
[email protected]
Exhibit 99.1
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