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Exhibit 99.1
[GRAPHIC APPEARS HERE]
ZIPLINK CONTACTS:
William D. deKay Albert A. Gabrielli,
Chief Executive Officer Chief Financial Officer
ZipLink, Inc. ZipLink, Inc.
Telephone: 978/551-8907 Telephone: 978/551-8916
E-mail: [email protected] E-mail: [email protected]
FOR IMMEDIATE RELEASE
ZIPLINK ANNOUNCES RECEIPT OF NOTICE OF
DEFAULT FROM MCI WORLDCOM
LOWELL, MASS. - NOVEMBER 3, 2000 - ZipLink, Inc. (NASDAQ: ZIPL), a wholesale
Internet connectivity provider, today announced that the company has received a
letter from MCI WorldCom demanding payment for past due undisputed amounts of
$1.9 million by November 10, 2000. The company and WorldCom have negotiated an
extension of the payment date for such amounts until November 30, 2000, provided
that ZipLink makes payments to MCI WorldCom of $196,000 per week commencing
November 3, 2000. ZipLink does not have sufficient funds on hand to satisfy the
MCI WorldCom obligation, as well as other day-to-day obligations, without
drawing down on its $10.0 million line of credit with Fleet National Bank. As
previously disclosed, Henry M. Zachs, Co-Chairman of the Board of ZipLink and
guarantor of the $10.0 million line of credit, must approve any draw down under
the company's line of credit. Mr. Zachs has notified the company that although
he is willing to guarantee amounts under the line of credit to fund several
payrolls and the $196,000 payment to MCI WorldCom due November 3, 2000, he is
presently unwilling to guarantee amounts under the line of credit beyond the
payments described above. In the event the company fails to satisfy its
obligations to MCI WorldCom or its obligations to other key vendors, it could
result in termination of service by these vendors to ZipLink. If Mr. Zachs
maintains his position not to guarantee further drawdowns in excess of his
present commitments or if the company is unable to find alternative sources of
capital in a timely manner it will be unable to conduct its operations.
ZipLink is seeking a potential acquirer to purchase the company. The company is
interested in pursuing discussions with potential acquirers and strategic
partners in order to maximize shareholder value and maintain the viability of
the business. No assurance can be given that ZipLink will succeed in attracting
a potential acquirer or alternative sources of capital in a timely manner, if at
all.
For additional information about ZipLink, please visit the company's website at
http//:www.ziplink.net.
STATEMENTS IN THIS PRESS RELEASE CONCERNING THE COMPANY'S BUSINESS OUTLOOK OR
FUTURE ECONOMIC PERFORMANCE, ANTICIPATED PROFITABILITY, REVENUES, EXPENSES OR
OTHER FINANCIAL ITEMS, AND NETWORK OR SERVICE OFFERING GROWTH, TOGETHER WITH
OTHER STATEMENTS THAT ARE NOT HISTORICAL FACTS, ARE "FORWARD-LOOKING STATEMENTS"
AS THAT TERM IS DEFINED UNDER THE FEDERAL SECURITIES LAWS. ANY FORWARD-LOOKING
STATEMENTS ARE ESTIMATES, REFLECTING THE BEST JUDGMENT OF THE PARTY MAKING SUCH
STATEMENTS BASED UPON CURRENTLY AVAILABLE INFORMATION AND INVOLVE A NUMBER OF
RISKS AND UNCERTAINTIES AND OTHER FACTORS WHICH COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THOSE STATED IN SUCH STATEMENTS. RISKS, UNCERTAINTIES AND
FACTORS WHICH COULD AFFECT THE ACCURACY OF SUCH FORWARD-LOOKING STATEMENTS ARE
IDENTIFIED IN THE PUBLIC FILINGS MADE BY THE COMPANY WITH THE SECURITIES AND
EXCHANGE COMMISSION, AND FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS
RELEASE OR IN OTHER PUBLIC STATEMENTS OF THE COMPANY SHOULD BE CONSIDERED IN
LIGHT OF THOSE FACTORS.
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