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CMG INFORMATION SERVICES AND SUMITOMO ANNOUNCE COLLABORATION TO EXPAND INTERNET INTERESTS IN JAPAN
Sumitomo to Make $10 Million Investment in CMG;First Joint Initiative to License ADSmart Technology for Japanese Advertising Network ANDOVER, Mass. (February 9, 1998) — CMG Information Services, Inc. (NASDAQ: CMGI) today announced that Japan's Sumitomo Corporation (NIKKEI: SC) has agreed to make a $10 million investment in CMG. Under the new alliance, the companies will explore and develop joint Internet initiatives, leveraging the CMG businesses in Japan's fast-growing technology marketplace. Terms of the transaction have not been disclosed. CMG Information Services is one of the leading investors and developers of Internet and database management technologies, operating and/or financing some of the Web's leading brands, including Planet Direct, ADSmart, Engage Technologies, Lycos, and GeoCities. Sumitomo, the ninth largest global corporation with revenues of approximately $125 billion, is the leading investor in Japan's top Internet Service Provider, Internet Initiative Japan (IIJ), and is a cofounder and part owner of the Asian Internet Holding. The Sumitomo equity investment marks the third such investment for CMG in less than 13 months. Microsoft and Intel made similar CMG investments in 1997. As with Microsoft and Intel, the Sumitomo investment includes the explicit desire to explore mutually beneficial technology and business ventures in the future. Sumitomo also becomes the first international stakeholder in CMG, furthering CMG's global expansion efforts begun last year. In October of 1997, CMG announced the appointment of Marcus Bicknell to President of CMG Europe, supporting the CMG Internet Group of companies on that continent. "This collaboration marks a significant first step in expanding CMG's affiliate businesses into the Asian interactive marketplace," said David Wetherell, chairman, president and CEO, CMG Information Services. "Sumitomo has been an aggressive and visionary player in both Japan's and Asia's Internet arena, and provides CMG with a strong potential partner for all of our initiatives there." "The long-term relationship being established between our companies plays to our individual strengths, as well as our interests for future growth. We bring a history of success in building Asia's Internet infrastructure, while CMG brings its expertise in delivering advanced direct marketing and database management technologies, as well as superior content. We believe this alliance will create a powerful marriage of infrastructure and content serving the Asian Internet community," said Mr. Isao Momota, deputy general manager, Information & Telecommunications, Sumitomo Corporation."
ADSmart to Partner with Sumitomo for Japanese Advertising Network
In related news, ADSmart, a CMG affiliate company and one of the Web's leading U.S. advertising networks, today announced its own alliance with Sumitomo. The ADSmart Network will license its franchise business processes, methodology and technology to the Sumitomo Group's CrossBeam Networks Corporation to build an Internet advertising network in Japan. CrossBeam Networks, an Internet-based integration and services company, is a provider of Internet-over-CATV and an Internet content provider. Sumitomo chose ADSmart as its exclusive partner in Japan based on its network-enabling technology, franchise model and the broader synergies within the CMG family. About CMG
CMG Information Services, Inc. (NASDAQ: CMGI) (http://www.cmgi.com) invests in and integrates advanced Internet, interactive media, and database management technologies. The CMG Internet Group is made up of six majority-owned subsidiary companies including: Planet Direct, NaviSite Internet Services, Engage Technologies, ADSmart, InfoMation, and The Password. CMG also includes CMG Direct and SalesLink as majority-owned subsidiaries in the direct marketing and fulfillment arena. In addition to the CMG Internet Group, the Company's CMG @Ventures investment and development affiliate has significant interests in Lycos, Inc. (NASDAQ: LCOS), Blaxxun, Vicinity, GeoCities, Parable LLC, Reel.com, PlanetAll, KOZ, Silknet, Chemdex, Speech Machines, and Softway Systems. Both Microsoft and Intel hold minority positions in CMG Information Services. Corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810. Telephone: . FAX: . Additional information is available on the Company's web site, http://www.cmgi.com. About Sumitomo
Sumitomo Corporation ( http://www.sumitomocorp.co.jp ) is one of the world's leading traders and distributors of commodities, industrial goods, and consumer goods. Besides its role as a trader, Sumitomo Corporation is increasingly active as an investor in a diverse range of businesses that mesh with existing operations, or that position the company in markets with long-term potential. Sumitomo Corporation has a staff of 8,804 throughout Japan and in 88 other countries. About ADSmart
The ADSmart Network (), a majority-owned subsidiary of CMG Information Services, is comprised of more than 80 web sites which provides advertisers and agencies with a large marketplace of highly targeted sites and varied audiences. ADSmart's key affinity networks, including Generation-X, College, Finance/Investing, Sports, and Travel make it easy for advertisers to effectively and efficiently reach their unique target audience. ADSmart is headquartered in Andover, MA with offices in New York and San Francisco. |
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