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Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACTS: Kendall Kunz Michael Newman
Chief Executive Officer Investor Relations
Aris Corporation StreetConnect
(425) 372-2747 (206) 320-1231
ARIS SELLS SOFTWARE DIVISION
Company Focuses On Growth of eBusiness Consulting
BELLEVUE, WASH.--JULY 27, 2000-- Aris Corporation (Nasdaq: ARSC), a provider of
integrated eBusiness solutions, today announced that the Company has signed a
letter of intent to sell a majority share of the company's software division to
a group of investors led by Paul Song, Aris' Chairman of the Board and former
CEO.
Aris will receive total consideration of approximately $2.6 million in cash,
stock and receivables and will retain a 15% interest in Aris Software. In
addition, Aris will be granted warrants for the right to increase its future
investment up to 45% of the software company, assuming no future sales of
securities by Aris Software. The sale of Aris Software is expected to be
complete within 30 days.
"We continue to take the necessary steps to focus our management and capital
resources on the growth opportunities of our eBusiness consulting solutions,"
said Kendall Kunz, Chief Executive Officer. "While we focus on our core
business, Aris still stands to benefit significantly from any success Aris
Software might achieve. Aris Software has enormous potential for success as an
independent company under Paul Song's leadership and with a clear software
focus. We are very pleased with this transaction."
Aris' Software division contributed approximately $1.9 million to the Company's
fiscal first quarter revenue of $24.8 million, and contributed approximately
$389,000 to operating income for the quarter.
Ragen MacKenzie, Inc., an Investment Banking and advisory firm, represented Aris
Corporation in the software transaction. Subject to customary closing
conditions, Aris' Board of Directors has approved the divestiture.
ABOUT ARIS CORPORATION
Aris Corporation provides an integrated eBusiness solutions approach called
Interactive Enterprise Relationship Management (iERM), designed to improve a
company's relationships with customers, vendors, suppliers and employees by
leveraging the power of the Internet. Aris has offices across the U.S. and in
the United Kingdom, with over 500 employees worldwide, and is headquartered in
Bellevue, WA.
Statements in this press release, and elsewhere, that look forward in time or
include anything other than historical information, involve risks and
uncertainties that may affect the Company's actual results of operations.
Statements contained in this release regarding the Company's anticipated results
of operations, its eBusiness strategy, and on the Company's ability to expand
its eBusiness solutions and new product releases by the Company are
"forward-looking statements," as that phrase is defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements by the
Company are subject to certain risks, including future client demand for
integrated eBusiness and IT solutions; competition from other businesses
providing similar services to that of the Company; the Company's ability to
successfully execute its business strategy and management and operational
re-alignment of its consulting and training
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businesses; the Company's ability to attract, retain and motivate highly skilled
eBusiness and IT professionals; its dependence upon key vendors of software
technology; competitive pressures and lower operating margins of the Company's
training division and efforts to identify and execute strategic alternatives for
that business; the Company's ability to successfully integrate the acquisition
of fine.com; and issues that may arise in product development and possible
decisions by third parties to delay or cancel the release of products under
development. Those risks and uncertainties are discussed in more detail in the
Company's periodic reports filed with the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as amended.
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