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EXHIBIT 99.1
EXHIBIT 99.1. Press Release dated June 20, 2000
PRESS RELEASE
NETDIRECT AND BUYITNOW ANNOUNCE LETTER OF INTENT TO MERGE
EDEN PRAIRIE, Minn. - June 20, 2000 - Business-to-business e-commerce company,
Netdirect Corporation International, formerly known as Virtual Technology
Corporation (OTCBB: VTCO), today announced that it has entered into a
non-binding Letter of Intent to merge with on-line retailer BuyItNow, Inc. The
proposed merger is designed to allow the combined companies to compete more
effectively in business-to-business and business-to-consumer sales of
technology-related products and services.
"By joining forces with BuyItNow, we believe that we will be able to reach a
vast audience of businesses and consumers worldwide, while still streamlining
our operations," said Greg Appelhof, president and CEO of Netdirect. "In recent
weeks we have reorganized our business units and focused our resources on those
parts of the business that will get us to our goal of achieving profitability.
This merger enhances that effort by allowing us to leverage the strengths of
both companies to create a strong and more dynamic company for our customers,
employees and, ultimately, our shareholders."
Under the terms of the deal, Netdirect is assumed to have a fully-diluted market
value of $93 million, and BuyItNow is assumed to have a fully-diluted market
value of $350 million. Post-transaction, the combined company will have an
assumed market valuation of almost $450 million.
"As consolidation in our sector of the Internet continues, our strategy is to
solidify our market position and increase our value," said William Battison,
president and CEO of BuyItNow. "We believe that the merger with Netdirect will
increase our vertical integration and allow us to offer the highest level of
service and support to our business, educational, catalog, wholesale, retail and
Internet customers. BuyItNow truly can become a 'one-stop shopping' site for
computers and consumer electronics."
Last week, e4L, Inc. and eWonders.com, Inc., two of BuyItNow's largest
shareholders, announced the merger of BuyItNow.com and pcWonders.com, an
e-commerce company specializing in the sale of computer hardware and software,
consumer electronics, audio products and computer games.
"Our merger with pcWonders.com is intended to facilitate the use of BuyItNow as
a consolidation vehicle for the computer hardware, software, Internet appliance
and e-tailing markets and provide access to priceWonders.com and
ratingsWonders.com, two products that further strengthen the BuyItNow strategy,"
Battison added.
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The merger of Netdirect and BuyItNow is expected to close by July 31, 2000,
subject to board and shareholder approval by both companies, any necessary
regulatory approvals, additional due diligence and negotiation of a definitive
agreement.
ABOUT NETDIRECT CORPORATION INTERNATIONAL
Netdirect is an e-commerce company that offers businesses and communities of
interest a better way to purchase a full array of technology products with
unprecedented, personalized customer service and affordable prices. The company
generates revenue through product and service sales and advertising programs by
creating technology marketplaces for businesses, educational institutions and
affinity groups that collectively reach millions of loyal business and consumer
buyers. In addition, Netdirect operates several proprietary online sites,
including www.netdirect.com, www.dtpdirect.com, and www.downloadstore.com.
ABOUT BUYITNOW
BuyItNow, Inc. is an Internet retailer featuring one of the largest selections
of brand name products and unique specialty items. The BuyItNow.com
"WebPlaza(TM)" currently features specialty stores housed at
http://www.buyitnow.com. Much more than an online mall that simply links
consumers to various retail sites, BuyItNow stores are owned and operated by the
company. All stores are linked through real-time fulfillment and a unified
shopping cart. The site is particularly acclaimed for its customer-friendly
online experience which features live "e-Reps(TM)" who are available in real
time via the site or through a toll free number at 888-55-BuyIt. BuyItNow, Inc.
recently acquired and merged with pcWonders.com, a leading e-commerce company
specializing in the sale of computer hardware and software, consumer
electronics, audio products and computer games. BuyItNow's major corporate
partners include NBC Internet, Inc., a branded global integrated media company;
Clear Channel Communications, the world's largest outdoor advertiser and radio
station owner; e4L, Inc., a multi-faceted direct marketing company, which
promotes its products via television and the internet; and EMMIS Communications,
a diversified media firm with radio broadcasting, television broadcasting and
magazine publishing operations. Netdirect(TM) is a trademark of Netdirect
Corporation International.
Statements in this Press Release that are not purely historical are "forward
looking statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including statements regarding Netdirect's expectations, hopes,
beliefs, intentions or strategies regarding the future generally, Netdirect
suggests review of its filings with the U.S. Securities and Exchange Commission,
including in particular, its recently filed Annual Report on Form 10-K and the
risk factor discussion in that report and its Quarterly Report on Form 10-Q for
the three months ended April 30, 2000. Netdirect cannot guarantee that it will
consummate the proposed business combination with BuyItNow on the terms
described in this press release, or at all. Netdirect also cannot assure that
that it will raise any additional equity or debt capital on terms acceptable to
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it, or at all, that it will be able to continue as a going concern or ever be
profitable or that our stock price will not decline further than it has over the
past several months.
Contact:
Investor Relations Services, New Smyrna Beach, Fla.
Dan Kinnison, 904/409-0200
