Netgateway/Galaxy Enterprises Merger Closed Successfully
LONG BEACH, Calif./OREM, Utah--(BUSINESS WIRE)--June 27, 2000-- Netgateway Inc.
(Nasdaq:NGWY), a leading e-Business Service Provider, and Galaxy Enterprises
Inc. today said the previously announced transaction to merge the two companies
closed on Monday, June 26, 2000.
"Since announcing the proposed merger, we have been working closely with Galaxy
on joint business opportunities as well as on integrating our computer
technologies and operations," said Roy Camblin, Netgateway's chief executive
officer. "We have been pressing forward aggressively on the many synergies that
exist with the combination of the two companies, especially with merchant
training and mall development in local cable markets, as we implement local
shopping portals for the major cable companies. Both management teams are
extremely excited about our combined prospects and are already well advanced in
completing a smooth transition."
Under the agreement, Netgateway acquired Galaxy Enterprises for approximately
3.9 million shares in an all-stock merger, in which it exchanged approximately
0.63 Netgateway shares for each share of Galaxy Enterprises.
Galaxy Enterprises presently hosts more than 4,000 online storefronts and
currently adds more than 200 new merchant storefronts per month. In addition to
significant high-end B2C business, Galaxy brings to Netgateway a highly rated
training and merchant support program for small businesses that want to learn
how to effectively use e-Commerce. Galaxy Enterprises also operates Matchsite,
Galaxy Mall, Impact Media and BannerSource.
The merger is expected to enhance Netgateway's expanding activities in both the
local cable mall and Internet online mall markets by providing an integrated
training and support platform for its many new customers seeking, not only an
online presence, but the skills to be successful in the eCommerce space.
About Netgateway
Netgateway, Inc. is a comprehensive e-Business Service Provider (ESP) helping
companies of all sizes meet diverse e-Business challenges. The ideal electronic
outsourcing (or e-Sourcing) solution, Netgateway allows companies to incorporate
the Internet Commerce Center(TM) (ICC(TM)) as their primary e-Business
infrastructure. The Netgateway ICC(TM) is a robust, secure e-Business Platform
specifically designed for rapid deployment of built-to-order e- Business
solutions.
The Netgateway ICC supports applications ranging from highly complex B2B
solutions that involve large numbers of transactions, extensive workflow
automation and back-end integration to legacy systems, to simple Internet
storefronts and shopping Malls.
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About Galaxy Enterprises Inc.
Galaxy Enterprises Inc. owns and operates Galaxy Mall, Matchsite and
BannerSource. Galaxy Enterprises (www.galaxymall.com) is one of the Internet's
fastest growing and most popular virtual shopping portals. It is home to more
than 4,000 small and medium-sized businesses. These merchants benefit from
Galaxy Mall's more than 14 million monthly hits and its frequently updated
marketing and support materials provided in its merchants only section of the
mall.
This news release contains forward-looking statements within the meaning of the
Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are based on the current expectations and beliefs of the
management of Netgateway and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. More information is available from
Netgateway's Investor Relations department and may be obtained by calling or
writing. Netgateway (www.netgateway.net) is located at 300 Oceangate, Suite 500,
Long Beach, Calif., 90802.
CONTACTS: Netgateway
Jon Frojen, 562/308-0032
[email protected]
or
Pondel/Wilkinson Group
Robert Whetstone, 310/207-9300
[email protected]
