EXHIBIT 99.1
NEWS RELEASE
COYOTE NETWORK SYSTEMS AND HOMEACCESS MICROWEB SIGN
MERGER AGREEMENT - PLAN TO DELIVER NEXT-GENERATION
INTERNET SERVICES TO LOCAL COMMUNITIES
Los Angeles, CA - May 30, 2000 - Moving to significantly expand e-commerce
opportunities for merchants and consumers in local communities across the U.S.,
Coyote Network Systems, Inc. (NASDAQ:CYOE) and HomeAccess MicroWeb, Inc.
announced today that the companies have signed a definitive agreement for
HomeAccess to combine with Coyote Network Systems and begin the roll out of
HomeAccess services.
Coyote Network Systems will provide the communications backbone for the
nationwide deployment of the HomeAccess service beginning with installations in
Seattle, Pittsburgh, Los Angeles and Houston. DQE Enterprises, Inc. (Parent -
DQE:NYSE), an e-business incubator and early-stage investor in HomeAccess, will
facilitate these deployments by leveraging its relationships with affiliated and
non-affiliated utilities in targeted metropolitan areas. In addition, HomeAccess
is in discussions with Albertson's, Inc. (NYSE:ABS), one of the nation's largest
food and drug retailers with over 2,500 stores in 37 states, to process and
fulfill grocery and drug orders through web appliances. HomeAccess also has an
on-going smart-card-based loyalty system contract with The Macerich Company
(NYSE:MAC), one of the largest regional mall operators and owners in the U.S.
Macerich is exploring further leveraging this loyalty program with Internet
appliances, such as those used with the HomeAccess service.
HomeAccess will deploy low-cost, easy-to-use Internet appliances, such as screen
phones, in concentrated geographic markets around malls and supermarkets. Local
merchants will market and sell their products and services on-line to customers
that reside in the local community that they serve. The deployment of these
services is anticipated to be assisted by local utility companies which are
uniquely positioned to host HomeAccess community e-commerce exchanges due to
their long-term, trusted relationships with virtually every household and
business in their service territories and their technically sophisticated
systems and employees that are accustomed to building and maintaining
highly-reliable networks that are essential for the welfare of the local
community.
Coyote Network Systems and HomeAccess share the vision that customer benefits
and profit opportunities in e-commerce can be significantly enhanced by
capitalizing on two important market characteristics. First, 80% of purchases
are made within 10 miles of people's homes. Consequently, e-commerce solutions
need to reinforce existing community-centric customer relationships and product
delivery approaches. Second, Internet appliances, such as screen phones, are
more effective shopping appliances than PC's due to their low cost and familiar
user interface. As a result, higher customer penetration and usage rates can be
achieved with these applications relative to traditional PC's.
The HomeAccess value proposition will be further enhanced by offering Coyote
Network System's local and long distance telephone services over the screen
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phones, as well as e-mail, electronic bill presentation and payment and many
other services. The Coyote Intelligent Network will allow the expansion of next
generation Internet services to local communities. World-Class session security
will be achieved using the latest in smart card technologies.
James R. McCullough, chief executive officer of Coyote Network Systems, Inc.
stated, "We are delighted to join with DQE Enterprises and HomeAccess to
radically enhance the value proposition for merchants and their local customers.
We are building a truly scalable e-commerce platform that will enable customers
to enjoy traditional on-line services such as e-mail coupled with
non-traditional on-line services such as the ordering and paying for groceries
and other goods and services from local merchants, over the telephone, using
Coyote Network System's next generation network."
Jerry Conrad, chief executive officer and chairman of HomeAccess MicroWeb, Inc.
commented, "In addition to local utility companies, the HomeAccess system
combined with Coyote Network Systems' intelligent network, provides significant
opportunities to virtually any local merchant. Regional mall operators, local
newspapers, supermarkets and other merchants will now be able to offer secure
Internet services to their entire customer base, not just to those customers
with access to a PC. Furthermore, the HomeAccess screen phone allows consumers
to transact business whenever and wherever they want from their kitchen
countertop to their home office."
Thomas A. Hurkmans, president of DQE Enterprises, Inc. stated "DQE Enterprises'
agreement with HomeAccess and Coyote Network Systems to build community-focused
e-commerce networks extends DQE Enterprises' business of developing companies
which utilize technology to increase the value of essential products and extend
the business reach of utilities. We anticipate that DQE's affiliates will deploy
HomeAccess screen phones to many of DQE's over one million electric, water and
propane customers and 500,000 subscribers of BroadPoint Communication's
FreeWay(TM) service, an advertiser-sponsored, free long-distance and on-line
shopping service."
Pat Steele, executive vice president of Information Systems and Technology of
Albertson's Inc. stated, "Albertson's is committed to providing the best
shopping experience for its retail food and drug customers. The HomeAccess
non-PC Internet appliances make sense with Albertson's PC-based Internet
shopping sites, www.albertsons.com and www.sav-ondrugs.com. We believe that our
customers would enjoy creating and managing shopping lists from their kitchen
counters with the HomeAccess screen phone and portable barcode scanners. For
example, these devices allow the customer to order the exact item they want by
simply scanning the barcode on the package in their pantry. The low-cost and
simplicity of the screen phone make it feasible to achieve a high penetration of
on-line shoppers."
Arthur Coppola, chief executive officer of The Macerich Company commented, "The
Macerich Company has the reputation for creating shopping environments that
establish the local mall as the `Town Center' within each of the communities
that we do business. We are currently developing with HomeAccess a smart card
deployment, which will reward shoppers of our town centers with concierge,
frequent shopper and commerce enabling services. Frequent shoppers of our town
centers will be able to use their smart cards not only to receive member
services in the mall, but also to order and pay for products and services
on-line from our merchants using their existing PCs or low cost, easy-to-use
Internet appliances such as screen phones. The geocentric deployment strategy of
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HomeAccess fits well with our goal of tapping into and enabling our frequent
shoppers who already are spending approximately 80% of their family budget in
their local communities."
Upon closing of this transaction, which is expected to occur on or before August
31, 2000, 100% of the capital stock of HomeAccess, plus an additional $7 million
of cash provided by DQE Enterprises on or before closing, will be exchanged for
common stock, convertible preferred stock and warrants to acquire common stock
of Coyote Network Systems, making the current shareholders of HomeAccess,
including DQE Enterprises, significant shareholders in Coyote Network Systems.
After the close of this transaction, Jerry Conrad, Chairman and CEO of
HomeAccess, will continue to be CEO of the HomeAccess division of Coyote Network
Systems. The agreement provides DQE Enterprises three seats and Jerry Conrad one
seat on the Coyote Network Systems' seven member board of directors. Upon
closing, it is anticipated that the management of Coyote Network Systems will be
restructured to better position the combined company to capitalize on these new
opportunities. The transaction is subject to closing conditions, including
Coyote Network Systems shareholder approval and the approval of the DQE
Enterprises Board of Directors.
About HomeAccess MicroWeb, Inc.
Based in Irvine, CA, HomeAccess MicroWeb, Inc. developed the concept and
software system implementation of the HomeAccess(TM) brand information and
e-commerce service. HomeAccess provides the complete solution for connecting
consumers to the web, including web telephone appliances and integrated
peripherals, such as barcode scanners, an ATM interface Micro Browser, e-mail
boxes, smart cards and Internet dial-up access. Consumers are provided with a
"personal portal" to HomeAccess content and services that include messaging,
news and information, financial services, bill presentation and payment, travel
and entertainment, directory search, shopping and personal productivity
services. For more information, visit the company's website: www.homeaccess.net,
or call 1-949-588-5100.
About Coyote Network Systems, Inc.
Based in Los Angeles, CA, Coyote Network Systems, Inc. (NASDAQ:CYOE) provides
international and domestic long distance as well as local service. The company
is positioned to take advantage of high growth opportunities through the
delivery of next generation telephony and Internet services and voice over
Internet Protocol. For more information, please visit the company's website:
www.cyoe.com, or call 1-310-966-9719.
About DQE Enterprises, Inc.
DQE Enterprises is a wholly-owned subsidiary of publicly traded DQE, Inc.
(NYSE:DQE), a growth utility, delivering essential products, including
electricity, water, gas and communications, to more than one million customers
throughout the United States. DQE combines the stability of a utility with the
spirit of a dot com business by applying leading-edge technology to create
greater value for customers and shareholders. DQE Enterprises acquires and
develops businesses involved in energy services, communications and electronic
commerce. For more information, please visit the company's website:
www.DQE-Enterprises.com. DQE Enterprises' BroadPoint Communications affiliate
website is: www.BroadPoint.com.
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About Albertson's Inc.
Based on Boise, Idaho, Albertson's, Inc. (NYSE:ABS), is one of the largest food
and drug retailers in the nation, operating over 2,500 stores in 37 states.
Albertson's is an industry leader in developing on-line shopping for groceries
and drugstore items through its website at www.albertsons.com. Albertson's is a
founding member of the World Wide Retail Exchange, a global business-to-business
entity, along with 15 other large retailers.
About The Macerich Company
The Macerich Company (NYSE:MAC) is a fully integrated self-managed and
self-administered real estate investment trust, which focuses on the acquisition
and redevelopment of regional malls and community centers throughout the United
States. The Company is the sole general partner and owns an 80% ownership
interest in the Macerich Partnership, L.P. Macerich owns an interest in 47
regional malls and five community centers totaling over 42 million square feet.
Additional information about The Macerich Company can be obtained from the
Company's website at www.macerich.com.
The statements in this news release may be considered "forward looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and involve known and unknown risks and uncertainties, which may cause
the Company's actual results in future periods to be materially different from
any future performance suggested in this news release. Readers are cautioned not
to place undue reliance on these forward-looking statements that speak only as
of the date hereof. The Company undertakes no obligation to publicly release the
result of any revisions to these forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. For more complete information, please refer
to the Company's Form 10-K, Form 10-Q and other filings with the SEC.
CONTACT:
Jerry Conrad, Chairman and Chief Executive Officer
HomeAccess MicroWeb, Inc.
(949) 588-5120
Thomas A. Hurkmans, President
DQE Enterprises, Inc.
(412) 231-3787
James R. McCullough, Chief Executive Officer
Coyote Network Systems, Inc.
(310) 966-9719
