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Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Mark Lynch
Chief Financial Officer
MicroStrategy Incorporated
(703) 848-8600
[email protected]
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MicroStrategy Raises $125 Million Through Private Placement
VIENNA, Va., June 19, 2000 - MicroStrategy(R) Incorporated (NASDAQ: MSTR),
a leading worldwide provider of Intelligent E-Business(TM) software, today
announced it has concluded a private placement of $125 million of convertible
preferred stock with institutional investors led by Promethean Asset Management.
The preferred stock is convertible into MicroStrategy Class A common stock
at an initial conversion rate equal to the average of the daily volume weighted
average prices of the company's Class A common stock for the 17 trading days
following the closing of the deal. The company, at its option, can require that
the preferred stock convert into Class A common stock on the second anniversary
of the closing date or may extend the term of the preferred stock for up to an
additional two years. The conversion rate may adjust, subject to certain limits
and conditions, on the first anniversary of the closing and, if the company
elects to extend the maturity of the preferred stock, on each subsequent
anniversary. The preferred stock carries a 7% dividend yield, payable in cash
or common stock, at the company's option.
MicroStrategy expects the proceeds to be used primarily to fund working
capital and other general corporate needs, including supporting the introduction
of its MicroStrategy 7 software platform and the continued development of the
Strategy.com(TM) Personal Intelligence Network(TM).
"After reviewing our options, we felt that this financing offered us an
excellent opportunity to advance our business," said Mark S. Lynch, chief
financial officer of MicroStrategy Incorporated. "It will allow us to continue
to grow our business and promote our core brands, MicroStrategy and
Strategy.com. As we have added over 360 new employees last quarter and over 250
this quarter, we are pleased that by securing this funding we can move forward
and execute on our business plan."
The preferred stock will not be registered for sale under the Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration under such act or an applicable exemption from the
registration requirements of such act.
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About MicroStrategy Incorporated
MicroStrategy is a leading worldwide provider of Intelligent E-Business(TM)
software and related services. MicroStrategy's technology platform is creating a
new generation of one-to-one e-business solutions that enable global 2000
organizations to build personal relationships with their partners, supply-
chains, and customers. MicroStrategy delivers these solutions via web, wireless,
and voice. In addition to its industry leading technology, MicroStrategy also
offers a comprehensive set of consulting, training and support services for its
customers and partners.
MicroStrategy has approximately 1,000 customers across such diverse
industries as retail, finance, telecommunications, dot-com, insurance,
healthcare, pharmaceuticals and consumer packaged goods. MicroStrategy also has
entered into relationships with more than 250 systems integrators, application
development and platform partners.
Strategy.com, the Personal Intelligence Network, is a wholly-owned
subsidiary of MicroStrategy Incorporated. Strategy.com works with a variety of
leading companies to deliver personalized, timely information to consumers via
web, wireless and voice. Using advanced wireless technology, Strategy.com also
allows users to access information using "smart" mobile phones. Strategy.com
has over 375,000 subscribers and 170 Affiliates, including Wall Street Journal
Interactive, EarthLink, Ameritrade, Belo, Metrocall, USATODAY.com, Primark,
Washingtonpost.com, and NASDAQ.
For more information, please visit MicroStrategy's Web site:
http://www.microstrategy.com.
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MicroStrategy, Intelligent E-Business, Strategy.com and Personal Intelligence
Network are either trademarks or registered trademarks of MicroStrategy
Incorporated in the United States and certain other countries. Other product
and company names mentioned herein may be the trademarks of their respective
owners.
This press release may include statements that may constitute "forward-looking
statements," including its estimates of future business prospects or financial
results and statements containing the words "believe," "estimate," "project,"
"expect" or similar expressions. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that could contribute to such
differences include: the Company's ability to secure financing for its current
operations and long-term plans on acceptable terms; the ability of the Company
to implement and achieve widespread customer acceptance of its Strategy.com
network on a timely basis; adverse reaction by the Company's employees,
investors, customers, vendors and lenders to the restatement of the Company's
financial results or its future prospects; the Company's ability to recognize
deferred revenue through delivery of products or satisfactory performance of
services; continued acceptance of the Company's products in the marketplace; the
timing of significant orders; delays in the Company's ability to develop or ship
new products; market acceptance of new products; competitive factors; general
economic conditions; currency fluctuations and other risks detailed in the
Company's registration statements and periodic reports filed with the Securities
and Exchange Commission. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or changes
after the date of this release.
