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Exhibit 99.6
FROM: VirtualFund.com, Inc.
CONTACT Dennis B. McGrath-
McGrath-Buckley Communications Counseling
651-646-4115 -or- [email protected]
VirtualFund Terminates Masters for Cause, Announces Employee Layoff
MINNEAPOLIS, Dec. 19, 2000 -- VirtualFund.com, Inc. (Nasdaq: VFND - news)
announced today that Melvin Masters, its suspended chief executive officer and
president, has been terminated for cause, effective immediately. The company
also announced the permanent layoff of 91 of its 212 employees
VirtualFund board of directors vice chair Timothy R. Duoos explained that
Masters was terminated for insubordination and breach of fiduciary duty because
he continued to pursue a relationship with Manugistics, Inc., a Maryland-based
software company, and paid $2.5 million to that company in defiance of a
directive from the board that he delay that action. The board's directive was
based on its concern over rapid deterioration of the company's cash position
during the five months that Masters pursued a new electronic
business-to-business strategy, following the company's sale of its primary
printer business for $47 million in cash. Duoos said Masters had dismissed the
board's call for a careful review of that business strategy.
Additionally, Duoos said the termination was based on various breaches of
Masters' fiduciary duties to the company and its shareholders including:
o Continued expenditure of corporate funds to repurchase shares
of VirtualFund's common stock after the board of directors
determined stock repurchases should end;
o Financial irregularities in connection with Masters' related
party transactions; and
o Charging the company for significant personal expenses that
were not incurred in connection with his duties and
responsibilities.
Duoos said the company is continuing to review these and other improprieties to
determine possible legal recourse. VirtualFund acting CEO and president Robert
L. Kelly said the workforce reduction was a "painful but absolutely necessary
action" due to the current reassessment of the company's business-to-business
e-commerce strategy and the need to reduce costs and preserve cash during this
period.
Earlier, VirtualFund also placed 70 of its employees on vacation or paid leave.
The company placed another 36 of its employees on the same status on December 4,
the day it announced that Masters had also been suspended as chairman of
VirtualFund's board.
Kelly said that most employees affected by today's layoff will receive severance
packages and benefit extensions pursuant to federal law.
