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EXHIBIT 99.1
NECX.COM ENTERS INTO AGREEMENT TO ACQUIRE AMERICAN IC EXCHANGE
VerticalNet's NECX.com to Acquire Prominent B2B Electronics Exchange
PEABODY, MA -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."
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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.
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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.
