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Exhibit 99.4
For immediate release:
Contact:
AT APPLIEDTHEORY
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1500 Broadway - 3rd Floor Dave Buckel Karolin Shoikhet
New York, NY 10036 Investor Contact Media Contact
212-398-7070 (ph) Senior VP and CFO Senior Media Liaison
212-398-5985 (fx) 212-398-7070 (x-4444) 212-398-7070 (x-4226)
[email protected]
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AT THE FINANCIAL RELATIONS BOARD
Paula Schwartz Beth Lewis Deanne Eagle
General Info Analyst Info Media Info
212-455-0915 617-369-9240 212-661-8030
APPLIEDTHEORY SECURES $60 MILLION FINANCING DEAL
DEAL WITH THE PALLADIN GROUP BRINGS ADDITIONAL MAJOR INSTITUTIONAL INVESTORS
INTO ATHY.
AppliedTheory Corporation, a leading provider of Internet business solutions,
announced today that it has signed a definitive agreement for up to $60 million
in new financing from major institutional investors led by The Palladin Group's
Halifax Fund. Halifax Fund is a leading private equity fund focusing on direct
investments in high growth companies. The fund seeks to provide funding to
public companies when a capital infusion can act as a catalyst for a cascade of
positive events.
Under terms of the deal, AppliedTheory will receive $30 million initially in the
form of convertible debentures, which are initially convertible into common
stock of the Company valued at a premium of 25% above its average price over an
agreed-upon period after the closing. The remaining $30 million dollars can be
received at various times over the next three years upon the exercise of
warrants, an investor call and a Company put. More exact details and terms of
the deal will be made available in the Company's upcoming filing of form 8-K
with the Securities and Exchange Commission.
"This new capital infusion not only provides us maximum financial flexibility,
but also partners us with a long term oriented investor who shares our vision
for the explosive demand for Internet business solutions by mid sized companies"
said David Buckel, AppliedTheory's Senior Vice President and Chief Financial
Officer. "As a company, we are extremely proud to have secured this attractive
financing from such a well respected investor, especially during a time of
uncertainty in the US Capital markets."
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Jeff Devers, The Palladin Group's President offered, " We believe in investing
in fast growing companies that deliver highly differentiated products and
services, which build value for shareholders and customers alike.
AppliedTheory's exemplary customer service, high value solutions and extensive
experience represent the best in its industry. We look forward to helping fuel
AppliedTheory's accelerating growth."
About AppliedTheory
With deep roots in the emerging Internet marketplace, AppliedTheory offers a
peerless strategic vision to companies and public sector organizations seeking
everything from simple Internet access to sophisticated large-scale,
Internet-based application development. AppliedTheory's integrated solutions are
tailored not only to the customer's immediate needs, but are engineered to
respond to future demand, with an emphasis on customer support and service.
Together with its strategic business partners, AppliedTheory implements a broad
range of best-of-breed services nationwide, including e-Business Solutions,
needs assessment and security consulting, AIP and Web site hosting, Internet
access, Virtual Private Network (VPN) implementation and ongoing end-to-end
support. More than a technology company, AppliedTheory understands the Internet
business and how to do business on the Internet. AppliedTheory is headquartered
in New York, NY. For more information, access the company's Web site at
http://www.appliedtheory.com. Statements contained in this press release that
are not historical facts may be deemed to be forward-looking statements which
are subject to risks and uncertainties, including those discussed in
AppliedTheory's filings with the Securities and Exchange Commission.
/CONTACT: Investors - Dave Buckel, Senior VP and CFO, ext. 4444, or Media -
Karolin Shoikhet, Senior Media Liaison, ext. 4226, or
[email protected], both of AppliedTheory, 212-398-7070, or fax,
212-398-5985; or General Info - Paul Henning, 212-661-8030, Analyst - Beth
Lewis, 617-369-9240, or Media - Deanne Eagle, 212-661-8030, all of The Financial
Relations Board
