Exhibit 99.1
PRICELINE.COM AND GENERAL ATLANTIC PARTNERS ANNOUNCE FORMATION OF
PRICELINE.COM EUROPE
. . . PRICELINE.COM EUROPE TARGETS 4TH QUARTER 2000 PRODUCT LAUNCH
LONDON--(BUSINESS WIRE)--June 28, 2000-- Priceline.com Europe(TM) Names
Senior Management Team of Dennis Malamatinas, Diageo plc Director And CEO
of Burger King, and Timothy G. Brier, Former President Of U.S.-Based
Priceline Travel
Priceline.com, the Name Your Own Price(TM) Internet commerce system, and
General Atlantic Partners, LLC, announced today the formation of a new
company called priceline.com Europe(TM) that plans to begin offering
products and services starting in the fourth quarter 2000.
In addition, the new company announced the appointment of the first two
members of its senior management team. Dennis Malamatinas, who is currently
a director of Diageo plc and Chief Executive Officer of Burger King
Corporation, will join priceline.com Europe on September 1st as its
President and CEO. Timothy G. Brier, a founder and former Executive Vice
President of US-based priceline.com and former President of Priceline
Travel, has been named Chairman of priceline.com Europe, effective
immediately.
"In the U.S., priceline.com has fundamentally transformed the way products
and services are priced and sold," said Mr. Brier. "Instead of accepting
the posted price on an item, consumers can set the price they want to pay
and let priceline.com Europe go to work finding the requested products or
services at the consumer's specified price. Savings of up to 30%, 40% or
more are not unusual and, as a result, priceline.com has expanded into
multiple product categories in the US and built a base of over 5.3 million
unique customers, with targeted annual revenue of over $1 billion(US) in
its 2nd full year of operation.
"The time has come to enable European consumers to benefit from
priceline.com's unique buyer-driven e-commerce model," said Mr.
Malamatinas. "We believe that the European markets will respond favorably
and quickly to this consumer pricing model."
Priceline.com Europe will license priceline.com's business model and
benefit from priceline.com's expertise in technology, marketing and
operations. The new company will pay priceline.com an annual licensing fee
in respect of priceline.com's intellectual property. In addition,
priceline.com purchased a warrant allowing priceline.com to take a majority
equity stake in priceline.com Europe under certain conditions.
Until that warrant is exercised, priceline.com will not hold an equity
stake and financial results from the new company will not be included in
priceline.com's financial statements. General Atlantic Partners is
providing significant financial support through its purchase of equity
securities in the new company, as well as additional operational and
strategic support through its expert professional staff.
"Today's announcement of priceline.com Europe is yet another example of
priceline.com's commitment to bring our unique commerce system to markets
throughout the world," said Richard S. Braddock, Chairman of priceline.com.
"Given the importance of the European markets, we're pleased that
operations will begin with such a strong core management team. Tim Brier
brings to the business years of experience in the Internet and travel
industries, as well as being one of the founders of priceline.com. Dennis
Malamatinas is a world-class executive with extensive experience running
international businesses."
"As one of priceline.com's earliest investors, General Atlantic Partners is
pleased to extend and broaden our relationship through our investment in
priceline.com Europe," said Florian Wendelstadt, a Principal of General
Atlantic's London operations. "Priceline.com has clearly shown itself to be
one of the most compelling consumer and business propositions on the
Internet. It is one of the top e-commerce businesses and has a proven and
sustainable business model in the US. Therefore, we are excited to extend
the model to the European markets."
"We're very pleased to have the support of General Atlantic as we build
priceline.com Europe," added Mr. Brier. "Their track record, their role in
helping develop priceline.com's US business, and their value-added approach
make them priceline.com Europe's ideal partner."
Priceline.com Europe initially expects to offer Name Your Own Price(TM)
services for leisure airline tickets, hotel rooms, rental cars and long
distance telephone calling. Specific product roll-out timetables will be
announced in the future.
Priceline.com Europe is priceline.com's third international expansion. In
January, priceline.com announced an alliance with Hutchison Whampoa Limited
to introduce priceline.com's buyer-driven commerce platform in China and
Hong Kong, India, Taiwan, Indonesia, Singapore, Thailand, Korea, Malaysia,
the Philippines and Vietnam. In February, priceline.com announced plans to
create a new company, called MyPrice, to bring its commerce system to
Australia and New Zealand. The deals for both of these ventures were
completed in June.
About priceline.com Europe's management team Dennis Malamatinas, 45, will
become President and CEO of priceline.com Europe on September 1st.
Currently, he is a director of Diageo plc and CEO of Burger King
Corporation. (Diageo plc is a global consumer goods company formed by the
merger of Grand Metropolitan plc and Guinness plc in 1997. With over $20
billion(US) in sales, Diageo's portfolio of food and drink brands includes
Smirnoff, Johnnie Walker, J&B, Gordon's Pillsbury, Haagen-Dazs, Guinness
and Burger King). Mr. Malamatinas also serves on the Board of Directors of
Reuters plc (RTR.L). He has extensive international management experience
and has managed companies in the U.S., Asia, the Far East, the former
Soviet Union, Europe, the Middle East and Latin America. Mr. Malamatinas
has lived in eight countries and speaks English, Greek, Italian and French,
as well as some Spanish and Dutch.
Mr. Malamatinas became CEO of Burger King Corporation in 1997 and
spearheaded Burger King's international expansion, turning it into a strong
profit-making operation with increased market share in all of the company's
key markets. Burger King operates 11,000 restaurants in 56 countries with
$11 billion in sales.
From 1995 to 1997, he was Executive Director and President of International
Distillers and Vintners' Asia Pacific region. (IDV is a unit of Grand
Metropolitan plc). From 1991 to 1995, Mr. Malamatinas was President and CEO
of the Pierre Smirnoff Company, where he developed Smirnoff's highly
successful global positioning and advertising strategy, and IDV Managing
Director for the former Soviet Union. From 1989 to 1991, he was President
and CEO of Grand Metropolitan's Metaxa Distillers.
From 1986 to 1989, Mr. Malamatinas held several positions with Pepsico,
including President and CEO of Pepsicola Italia. Mr. Malamatinas began his
career with Procter & Gamble in 1979, where he held a number of brand
management positions in Europe, the Middle East and Latin America. Mr.
Malamatinas also is one of the five founding members of President Clinton's
Welfare to Work reform initiative.
Mr. Malamatinas will report to priceline.com Europe Chairman Timothy G.
Brier, 52, who was a founder and former Executive Vice President of
US-based priceline.com and President of Priceline Travel. Mr. Brier is a
longtime Internet, technology and travel services veteran. Before
co-founding priceline.com in 1997, he was President of CAP Systems, a US
company that provides affinity and customized marketing programs to the
travel industry. From 1990 to 1995 he was Vice President of Marketing for
Continental Airlines. Prior to that, Mr. Brier was Vice President of Market
Planning for Pan American World Airways and Vice President of Marketing for
TWA. During his tenure at TWA, he was Managing Director for the airline's
UK and Ireland operations.
"We are very fortunate to have two world-class managers at the helm of
priceline.com Europe," said Mr. Wendelstadt of General Atlantic. "The
combination of Tim's experience building the priceline.com business in the
US, with Dennis' leadership, brand-building and international strengths,
gives us a potent combination to quickly expand the priceline.com business
model throughout Europe."
About General Atlantic Partners
General Atlantic Partners, LLC focuses exclusively on investing in
information-technology, Internet and Internet-enabled businesses globally
and at all stages of development. The firm has more than $10 billion in
capital under management and $4 billion of capital available for
investment. General Atlantic has invested in over 80 companies, including
E*Trade Group, priceline.com, Proxicom, Belle Systems and Exult. The firm
is unique in its global perspective on information technology, its
worldwide presence, its long-term approach to investments, and its
commitment to provide sustained strategic assistance aimed at creating
maximum value for its portfolio companies. General Atlantic
(www.gapartners.com) has offices in Greenwich (Connecticut), New York,
Reston, London, Singapore, Tokyo, Hong Kong and Sao Paulo.
About priceline.com
Priceline.com is the Name Your Own Price(TM) Internet pricing system,
protected by US patents. In the US, priceline.com provides services across
four broad product categories: a travel service that offers leisure airline
tickets, hotel rooms and rental cars; a personal finance service that
offers home mortgages, refinancing and home equity loans through an
independent licensee; an automotive service that offers new cars, and a
telecommunications service that offers long distance calling services.
Priceline.com licenses its business model to independent licensees,
including Priceline WebHouse Club, Inc., which offers a Name Your Own Price
service for groceries and gasoline; PricelineMortgage , Priceline Perfect
YardSale, Inc., a local-market, consumer-to- consumer selling service, and
certain international licensees.
In these arrangements, priceline.com generally receives royalties for
licensing its intellectual property. Priceline.com also holds securities
carrying the right to purchase a significant equity stake in the licensees
under certain conditions. Unless those rights are exercised, the results of
licensee operations will not be included in priceline.com's financial
statements.
Information about forward looking statements
This press release may contain forward-looking statements. Expressions of
future goals and similar expressions including, without limitation, "may,"
"will," "should," "could," "expects," "does not currently expect," "plans,"
"anticipates," "believes," "estimates," "predicts," "potential," or
"continue," reflecting something other than historical fact are intended to
identify forward-looking statements. The following factors, among others,
could cause the Company's actual results to differ materially from those
described in the forward-looking statements: inability to successfully
expand the Company's business model both horizontally and geographically;
management of the Company's rapid growth; adverse changes in the Company's
relationships with airlines and other product and service providers;
systems-related failures; the Company's ability to protect its intellectual
property rights; the effects of increased competition; anticipated losses
by the Company and its licensees; legal and regulatory risks and the
ability to attract and retain qualified personnel. For a detailed
discussion of these and other factors that could cause the Company's actual
results to differ materially from those described in the forward-looking
statements, please refer to the Company's most recent Form 10-Q and Form
10-K filings with the Securities and Exchange Commission.
Contact: Connors Communications
Simon Hill, (020) 7838 2695
or Elaine Marshall, (020) 7838 2696
or
priceline.com
Mike Darcy, 001-203-299-8168
[email protected]
or
Kekst and Company for General Atlantic Partners
Adam Weiner or Caroline Gentile
001-212-521-4823
[email protected]
[email protected]
