<PAGE>
FOR RELEASE MAY 30, 2000 at 7:30 AM EDT
---------------------------------------
Contact: ALLEN & CARON INC or INSCI-STATEMENTS.COM, CORP.
Mark Alvino (investors) Roger Kuhn, CFO
[email protected] [email protected]
212-698-1360 508-870-4000
Kari Rinkeviczie (media)
[email protected]
616-647-0780
INSCI-STATEMENTS.COM ACQUIRES LOGNET 2000, INC.
WESTBOROUGH, MA (May 30, 2000) . . . . insci-statements.com, Corp. (Nasdaq:
INSI) a provider of Internet-based and on-site solutions for electronic
statement/bill presentment services and digital document storage, workflow, and
electronic commerce, today announced it has acquired Totowa, NJ-based LogNet
2000, Inc. (formerly known as LogNet), which has research and development and
engineering operations in Haifa, Israel. LogNet is a privately held, development
stage company that develops software solutions for electronic bill presentment
and payment (EBPP), electronic statement presentment (ESP), one-to-one marketing
and printing connectivity.
According to the announcement by insci-statements.com Chairman and CEO E. Ted
Prince, Ph.D., LogNet will play a key role in the product and services expansion
strategy of both insci-statements.com's wholly owned subsidiary
InfiniteSpace.com, a provider of portal-based electronic statement presentment
services, and the Company's ESP+ on-site software solutions business.
Under the terms of the acquisition, which is being accounted for under the
purchase accounting method, insci-statements.com has acquired all the stock of
LogNet in exchange for 2.5 million shares of restricted insci-statements.com
Common Stock. insci-statements.com has agreed to a near-term registration of the
shares, depending on Securities and Exchange Commission schedules, however, the
shares will be subject to certain lock-up provisions. LogNet will nominate a
person to serve on the insci-statements.com Board of Directors. Further terms
were not disclosed.
LogNet has a good balance sheet with $2.8 million in cash and a number of
well-regarded and supportive investors have made investments in the Company.
These include Selway Partners, LLC, a management company located in Totowa, NJ
that serves as an incubator of technology companies. Selway is owned by SCP, a
private equity fund, and a venture capital fund affiliated with Safeguard
Scientifics, Inc. (NYSE: SFE) and by Yaron I. Eitan, Selway's founder and
principal and the Chairman of LogNet. Safeguard is a technology company
incubator and holding company based in Philadelphia. Other investors in LogNet
include CIP, a private equity fund that is also an affiliated venture fund of
Safeguard Scientifics and New York City-based THCG, Inc. (Nasdaq: THCG), a
global active Internet accelerator and investor in early-stage technology
companies, that also served as financial advisor to LogNet.
MORE-MORE-MORE
<PAGE>
INSCI-STATEMENTS.COM ACQUIRES LOGNET, INC
PAGE 2-2-2
"We welcome the talented team of LogNet software developers to the
insci-statements.com family," Dr. Prince said. "They have in-depth knowledge in
areas that will provide significant technical and time-to-market benefits for
both our traditional on- site software business and the portal-based services of
InfiniteSpace.com. The LogNet software and the technical expertise of its people
will enable us to readily enhance our products through the deployment of
electronic bill payment systems and one-to-one marketing capabilities. This will
be an especially important part of the InfiniteSpace.com outsourced portal
solution going forward."
Albert Elbaz, LogNet's current President will continue to manage the Company and
be based in the U.S., and he will become Executive Vice President of
InfiniteSpace.com. LogNet's research, development and engineering operations
will continue to be based in Israel and its Totowa, NJ office will become an
office of insci-statements.com.
Elbaz commented, "The acquisition of LogNet by insci-statements.com is a logical
move for us. We believe that the EBPP and ESP markets are going to grow
dramatically. By joining forces with a larger company that specializes in these
markets, has leading products in these areas and worldwide partnerships, we
create a much more formidable and competitive presence in markets with
significant future potential."
About Lognet 2000:
LogNet 2000 (LogNet) is a pioneer in the PC-to-host and print connectivity
industries. The Company provides hardware and software solutions that enable
organizations to extract greater value from their centralized architecture data
systems. LogNet's core strengths are its print protocol conversion, emulation
technologies, and expertise in legacy data integration. LogNet has extended its
core business into the burgeoning electronic bill presentment and payment (EBPP)
market. EBPP is an electronic process for delivering bills and bill-related
documents over the Internet to consumer and business customers. LogNet is
creating an e-billing solution that enables billers to extract and convert
legacy-billing data and distribute it over the Internet.
About insci-statements.com:
insci-statements.com is a leading provider of electronic statement/bill portal
services and digital document storage, workflow, and electronic commerce
solutions. The company's portal services and software solutions are designed to
help customers become more competitive, streamline business processes, improve
customer service, and take advantage of new technological developments to drive
revenues. insci-statements.com, has separated its two principal businesses, both
operationally and financially, to establish InfiniteSpace.com as a separate
wholly-owned subsidiary.
MORE-MORE-MORE
<PAGE>
INSCI-STATEMENTS.COM ACQUIRES LOGNET, INC
PAGE 3-3-3
For more information about insci-statements.com, visit its home page on the
Internet at HYPERLINK http://www.insci.com ~www.insci.com. For additional
investor relations information visit the Allen & Caron Inc Web site at HYPERLINK
http://www.allencaron.com ~www.allencaron.com.
INSCI is a registered mark and insci-statements.com and COINSERV are trademarks
of insci-statements.com, Corp.
The statements in this press release that relate to future plans, events or
performance are forward-looking statements that involve risks and uncertainties,
including risks associated with uncertainties pertaining to customer orders,
demand for products and services, development of markets for the Company's
products and services and other risks identified in the Company's SEC filings.
Actual results, events and performance may differ materially. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no obligation to
release publicly 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.
