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Exhibit 99.1
ZIPLINK ANNOUNCES PLANS TO SUSPEND OPERATIONS AND SELL ASSETS
LOWELL, Mass., Nov. 17 -- ZipLink, Inc. (Nasdaq: ZIPL), a wholesale Internet
connectivity provider, today announced that the company plans to suspend its
operations effective today, November 17, 2000. In addition, the company
announced the lay off of substantially all of its employees except those
necessary to wind down operations. The company is evaluating its strategic
alternatives in order to maximize the value of its assets which may include the
sale, sublet, or assignment of its 50,000 square foot office space and data
center in Lowell, Massachusetts, its Canadian operations and other network
assets. The company expects that all of the proceeds from any sale of its assets
will be used to pay creditors and there will be no proceeds available for any
shareholders.
The decision came after efforts commencing in March 2000 to raise capital
and/or seek a potential acquirer were unsuccessful, some of which efforts were
conducted by investment bankers engaged by the company. Additionally, the
company's decision was influenced by a recent default on payments to ZipLink by
its second largest customer, Spinway.com, and general market uncertainty
regarding the future of providers of free Internet access. "We are extremely
disappointed by the recent events leading to our suspending operations", said
the company's President, Chris Jenkins. "We thank our valued customers who have
relied upon us to provide them with state-of-the-art Internet connectivity and
believed in our vision. We are also deeply saddened to lay off members of our
staff whose dedication and hard work are unsurpassed".
For additional information about ZipLink, please visit the company's Web
site 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, 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.
978-551-8916, OR [email protected], BOTH OF ZIPLINK
