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EXHIBIT 99
Interliant Announces Accelerated Integration Initiatives; Plan Expected to
Advance EBITDA Breakeven by Two Quarters
September 20, 2000 08:28 AM Eastern Time
PURCHASE, N.Y.--(BUSINESS WIRE)--Sept. 20, 2000--Interliant, Inc. INIT , a
leading global application service provider (ASP), today announced actions to
rationalize operations ahead of plan. As a result of this initiative, the
Company expects to realize approximately $12 million in annualized cost savings
by the end of the first quarter of 2001, enabling it to advance EBITDA
breakeven. The Company will consolidate its geographically dispersed support
infrastructure. The Columbus (OH) call center will be enlarged to handle all
support for Interliant's ASP solutions. In addition, an enterprise control
center -- a "super NOC" (network operations center) -- will be located in the
Atlanta data center to centralize key worldwide operational, monitoring and
management functions. Finally, financial operations are being consolidated in
Purchase.
Interliant also announced the elimination of approximately 300 redundant non-
core positions over the next six months through direct workforce reductions and
managed attrition. The reductions will be made in operations, information
systems, finance, and human resources. Interliant anticipates recording a charge
of approximately $2 million in the quarter ending September 30 related to these
workforce reductions. "Interliant has aggressively acquired the key building
blocks critical to an ASP's success," said Bruce Graham, Interliant chief
operating officer. "Implementing best-of-class processes on a streamlined
support infrastructure will ensure that we will be able to cost-effectively
deliver against our service level guarantees." "Prior to these initiatives, our
business plan was fully funded through EBITDA breakeven in 2002, with $150
million in cash and short-term investments as of June 30," said Herb Hribar,
Interliant president and chief executive officer. "The consolidation announced
today will allow us to scale the organization as we aggressively grow our
business. It's a necessary step and one that we believe will enable us to
achieve breakeven EBITDA by the fourth quarter of 2001 -- two quarters earlier
than previously expected -- and to reach breakeven free cash flow by the second
half of 2002."
About Interliant
Interliant, Inc. INIT is a leading global application service provider (ASP) and
pioneer in the ASP market. Interliant's INIT Solutions Suite includes messaging
and knowledge management, security, e-commerce, customer relationship
management, enterprise resource planning, distributed learning, Web-site hosting
and Web-based rental applications. Interliant, headquartered in Purchase, NY,
has forged strategic alliances with the world's leading software, networking and
hardware manufacturers including Microsoft MSFT, Dell Computer Corporation
DELL, Oracle Corporation ORCL, BMC Software BMCS, Network Solutions NSOL, IBM
and Lotus Development Corp. For more information, visit www.interliant.com.
Interliant is a registered trademark of Interliant, Inc., in the US, other
countries, or both. Other company, product, and service names may be trademarks
or service marks of others.
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This press release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Any statements contained herein that are not statements of historical fact
may be deemed to be forward-looking statements. Actual results and the timing of
certain events may differ significantly from the results anticipated or
discussed in the forward-looking statements. These forward-looking statements
are based largely on Interliant's current expectations and are subject to a
number of risks and uncertainties. In addition to this press release, other
important factors to consider in evaluating the forward-looking statements
include, without limitation, Interliant's Form 10-K filed with the Securities
and Exchange Commission ("SEC") on March 29, 2000, and Interliant's registration
statement on Form S-1, as amended, that was filed with the SEC on May 16, 2000,
and in other reports of Interliant filed from time to time with the SEC. In
light of these risks and uncertainties, there can be no assurance that the
forward-looking statements contained herein will in fact be realized and
Interliant assumes no obligation to update this information.
