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VCampus Corporation
Prospectus Supplement Dated January 13, 2000
(To Prospectus Dated November 18, 1999)
The following paragraphs are hereby added to the disclosure under the
heading "Prospectus Summary - Our Company" as the penultimate paragraph on page
4 of the prospectus:
On January 13, 2000, the Company issued a press release substantially as
follows:
January 13, 2000, McLean, Va.--VCampus Corporation, a leading applications
service provider of web-based training, today announced that Mastech
Corporation, through its eVentures business unit, has made a strategic
investment in VCampus. Mastech Corporation (NASDAQ: MAST) , a leader in
providing e-business and information technology services worldwide to customers
such as GE, Sprint and Sony. Mastech and VCampus also intend to form a strategic
partnership through which Mastech will promote VCampus as a platform for hosting
corporate virtual campuses to its 1000 global customers. Mastech operates
facilities worldwide and employs over 5000 professionals.
Mastech purchased approximately 1.136 million VCampus common shares directly
from the company at a 20% premium over the average closing price for a 15-day
trailing period. The price was fixed at $3.62 on January 3, 2000, the date on
which both companies reached an agreement in principle. In addition, VCampus
granted Mastech warrants to purchase an additional 450,000 shares of VCampus
Common Stock during the next twelve months at exercise prices between $4.34 and
$6.125 per share depending on the market price of the stock on the exercise
date.
Nat Kannan, Chairman and CEO of VCampus Corporation, commented, "Mastech is a
major global player in e-Business and has targeted e-Learning as a strategic
growth area. We are delighted that they have selected VCampus and our full
service approach to providing Enterprise-wide learning to major corporations.
Mastech's endorsement and partnership offers to accelerate our growth into
global corporate customers. We believe this is a major milestone for us and
solves a huge marketing obstacle. Mastech will help us offer the VCampus
Enterprise Class solution to all of their 1000 customers. We expect this will
reduce our sales lead time and allow us to grow more rapidly."
Mr. Kannan added, "Basically, the traditional ERP implementations at major
corporations have not adequately addressed the e-learning needs of employees,
customers, and suppliers. VCampus has one of the most tested and proven
solutions for this market. Now with Mastech as a partner, we can go after this
market aggressively. Also, Mastech has an experienced professional staff to
support VCampus as we bid on large enterprise-level virtual campus
implementation projects."
"This agreement boosts our marketing and financial capabilities. The investment
helps us provide the capital to improve our balance sheet and expand to further
our goal of establishing VCampus as the clear business leader of distance
learning." Kannan also said the partnership leverages the strengths of both
companies. "For Mastech, VCampus provides a hosting platform for their
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corporate network solutions; for VCampus, Mastech offers access to large
corporations and global institutions." Kannan continued, "This deal is a company
maker."
Founded in 1986, Mastech is a worldwide provider of IT services and solutions to
large and medium-sized companies and employs highly skilled IT professionals.
"Rapidly changing technologies and skills call for professional training
programs hosted and delivered online," continued Kannan. "VCampus is now poised
to meet the growing demands of this market and to expand our course offerings
over the next few months."
According to Ajmal Noorani, Vice President of Mastech eVentures, web-based
education is fast becoming the preferred learning environment in the new
economy, as traditional methods require too much time and money.
"eLearning is a highly-functional and efficient offering in the Internet age,"
Noorani said. "We recognize its benefits and are pleased to be able to now offer
our global clients a complete solution from VCampus for their organizational
training needs. Mastech has been a forerunner of web-based learning for our
employees--through Mastech Virtual University--and it has enabled us to offer
training to employees around the world at a fraction of the cost of traditional
methods.
Noorani added that the VCampus approach--from course development to course
delivery and administration, all hosted offsite--is a true horizontal ASP
(Application Service Provider) model.
About Mastech Corporation
Mastech Corporation (NASDAQ:MAST) is a worldwide provider of high value
information technology services including eBusiness solutions, enterprise
solutions implementation, applications development, applications management, and
software modernization services, on a time and materials and/or a fixed
time/fixed price basis, with offshore delivery options. With a staff of over
5,500 employees, Mastech delivers its services to more than 900 clients through
36 offices in North America, Europe, Asia, Australia and Africa. For more
information, email [email protected]
