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EXHIBIT 99.1
DRAFT 13 - VENTRO CONFIDENTIAL
12/5/00
VENTRO CORPORATION ANNOUNCES RESTRUCTURING OF VENTRO OPERATIONS
TO FOCUS ON MARKETPLACE SERVICE PROVIDER MODEL
MOUNTAIN VIEW, CALIF.--DECEMBER 6, 2000--Ventro Corporation (Nasdaq:VNTR), a
leading business-to-business (B2B) marketplace service provider, today announced
the details of its corporate restructuring.
Ventro previously announced its intention to seek alternatives for its Chemdex
life sciences marketplace and Promedix specialty medical products marketplace.
The Company's Board of Directors, after assessing the proposals received, has
determined that it is in the best interest of shareholders to shut down both
Chemdex and Promedix in an orderly manner. As a result, Chemdex and Promedix
will initiate significant layoffs beginning December 31, 2000, to be completed
no later than March 31, 2001. Ventro expects that its industry partners will
make arrangements to meet the e-commerce needs of the participants in the
discontinued marketplaces.
The company expects to record aggregate restructuring charges of approximately
$380 to $410 million in its fiscal year-end results in connection with these
activities. The charges will include estimated costs for reductions of
approximately 235 personnel at Chemdex, Promedix and Ventro. The charges will
also include amounts for write downs of certain operating and intangible assets,
including goodwill associated with various acquisitions, costs of canceling
certain contracts and charges for certain other restructuring liabilities. The
ultimate amount of restructuring charges will be finalized in connection with
the Company's year end close. Ventro estimates that future cash outlays for
operating activities will be reduced by 50% after the restructuring is
completed.
"As Ventro moves forward we will continue to provide technology and services to
marketplaces in partnership with leading industrial players, as we have done
with our MarketMile, Broadlane, Industria and Amphire joint ventures," said
David Perry, President and CEO of Ventro Corporation. "The decisions related to
the restructuring, however, have been difficult ones to make, particularly as
they impact many of our employees and the efforts they have made to build
groundbreaking B2B marketplaces. But we must respond to and anticipate the
rapidly changing landscape of B2B e-commerce and it is clear we can be most
successful focusing on the Marketplace Service Provider model in partnership
with brick and mortar companies."
ABOUT VENTRO
Ventro is a leading builder of and service provider to B2B marketplaces. Ventro
offers a variety of products and services through its complete marketplace
solution that take online B2B marketplaces from concept to liquidity. Ventro
marketplaces include Broadlane(TM), Industria Solutions(TM), Amphire
Solutions(TM) and MarketMile(TM). For more information about Ventro, visit
www.ventro.com.
"Safe Harbor"' Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding Ventro's business which are not
historical facts are "forward-looking statements" that involve risks and
uncertainties. These potential risks and uncertainties could cause actual
results to differ from those contained in the forward-looking statements and
include, without limitation, Ventro's ability to prove its business model and
gain operating
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efficiencies, the effects of government regulation, and its estimates of
operating results. These and other risk factors are described in detail in the
company's filings with the Securities and Exchange Commission.
For PR Newswire versions only:
FOR ADDITIONAL INFORMATION:
FOR MEDIA INQUIRIES: FOR VENTRO INVESTOR INQUIRIES:
Ann O'Leary Jim Stewart
Ventro Corporation Ventro Corporation
650/567-8808 650/567-7501
[email protected]
Brett Weiner
Schwartz Communications
415/512-0770
[email protected]
