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EXHIBIT 99.1
Contacts:
Lisa Dabbon John Nesbett/Mary Ellen Adipietro
FairMarket, Inc. Lippert Heilshorn Associates
781-376-5812 212-838-3777
[email protected] [email protected]/[email protected]
FOR IMMEDIATE RELEASE
FAIRMARKET ADOPTS ONE-TIME EMPLOYEE INCENTIVE PROGRAM
WOBURN, MASS., DECEMBER 21, 2000 - FairMarket(sm), Inc. (Nasdaq: FAIM), a
leading provider of online dynamic pricing solutions, today announced a one-time
employee incentive program. Under the program, employees will be able to
exchange outstanding employee stock options (covering approximately 1.4 million
shares of FairMarket's common stock) on a one-for-one basis for new options
priced at the closing price on the exchange date. Options held by executive
officers and directors will not be included in the exchange. The exchange and
the new option grants are expected to be effective on January 16, 2001.
"I believe it is in the best interest of shareholders that we retain key
employees in order to maintain and grow our leadership in the provision of
dynamic ecommerce solutions. We continue to drive to meet our goal of operating
cash flow breakeven during Q1 2002," said Eileen Rudden, president and CEO of
FairMarket.
The exchange will constitute a repricing of the existing options and will
require variable accounting for the new options granted in the exchange. As a
result, FairMarket will recognize a non-cash compensation charge each quarter to
the extent that the then current per share fair market value of its common stock
exceeds the per share exercise price of the new options. There is a potential
for such a non-cash charge in the first quarter of 2001 and in each subsequent
quarter until all of the new options are exercised or until the date the options
expire or otherwise terminate, which is expected to be July 16, 2002.
ABOUT FAIRMARKET, INC.
FairMarket, Inc. is the leading provider of online dynamic pricing solutions,
including hosted auction, fixed price, falling price and shopping-by-request
services. The company helps businesses generate online revenue by expanding
e-commerce functionality and strengthening brand recognition. In the US, the
FairMarket Network(sm) includes some of the world's leading portals and vendors
on the Web with the potential to reach millions of online shoppers.
Headquartered in Woburn, Mass., FairMarket has offices in the U.K. and
Australia. The
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company can be reached at 800-531-7871 or on the Web at www.fairmarket.com.
# # #
FairMarket, FairMarket Network and the FairMarket logo are service marks of
FairMarket, Inc. The names of actual companies and products mentioned herein may
be the trademarks of their respective owners.
This press release contains information about future expectations, plans and
prospects of FairMarket, Inc. that constitute forward-looking statements for
purposes of the safe harbor provisions under the Private Securities Litigation
Reform Act of 1995. Actual results may differ materially from those indicated by
these forward-looking statements as a result of various important factors
including but not limited to market acceptance of FairMarket's online auction
and other e-commerce services; growth of the market for dynamic e-commerce
services; the competitive nature of the online markets in which FairMarket
operates; FairMarket's ability to attract and retain qualified personnel;
FairMarket's ability to retain existing customers and to obtain new customers;
the operation and capacity of FairMarket's network system infrastructure;
FairMarket's ability to expand into new geographic markets and the currency,
regulatory and other risks associated with expansion into international markets;
FairMarket's limited operating history; and the other risks and uncertainties
discussed under the heading "Risk Factors" in FairMarket's prospectus filed with
the Securities and Exchange Commission on March 14, 2000 in connection with
FairMarket's initial public offering and the reports filed by FairMarket from
time to time with the Securities and Exchange Commission. FairMarket assumes no
obligation to update any of the information included in this press release.
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