VerticalNet And NECX.com To Create Integrated Electronics Exchange
"This initiative represents plans to increase the power of our horizontal communities by leveraging the content of our vertical trade communities. We see tremendous synergies and incremental gains in both market and product liquidity," said Mark Walsh, CEO of VerticalNet. "The integration will clearly distinguish the joint entity from other electronics business-to-business dot.coms because we're solving mission critical inventory management problems."
NECX.com is one of the world's leading exchanges for the purchase and sale of semiconductors, computer products and networking equipment. Currently, thousands of manufacturers, OEMs and distributors turn to NECX.com to purchase production quantities of electronic components and computer products on the open market. By integrating NECX.com with the vertical trading communities in two of VerticalNet's most popular high-tech content areas, more than 300,000 registered users representing procurement, marketing, engineering and management professionals will be able to share knowledge and transact commerce in a highly innovative digital marketplace with standardized business processes.
VerticalNet's Advanced Technologies Group and Communications Group include targeted business-to-business vertical trade communities comprised of narrowly focused high-tech Web sites. Together, more than 300,000 registered users access superior editorial content updated daily, including white papers written by industry leaders, interactive software, industry news, product information, directories, classifieds, job listings and a host of other services.
Advanced Technology's Web sites include semiconductoronline.com, testandmeasurement.com, embeddedtechnology.com, electronicengineering.com, plantautomation.com, autocentral.com and aerospaceonline.com.
Communications' Web sites include wirelessdesignonline.com, fiberopticsonline.com, digitalbroadcasting.com, photonicsonline.com, rfglobalnet.com, premisesnetworks.com, wirelessnetworksonline.com and econline.com.
"The combination is a natural progression of our first-mover position. Our momentum is strong and we have captured greater marketshare through increased product liquidity," said Larry Marshall, president and CEO of NECX.com. "The Global Electronics Exchange is leveraging its critical mass and enabling faster searching and more efficient price discovery."
The Integrated Entity
Over the past year, the number of registered users within the Advanced Technology and Communications Groups has grown rapidly, as more and more contract purchasers, engineers and professional management turned to them for timely news, information, resources and discussion forums. NECX.com provides market expertise, a reputation for fairness and robust inventory management and procurement solutions through its hybrid online/offline model. The unique combination of VerticalNet's sell-side storefronts and e-commerce centers with NECX.com's buy-and-sell side trading capabilities will differentiate the integrated entity as a one-stop-shop for high-tech companies looking to leverage investments and knowledge across both marketing and manufacturing.
About NECX.com LLC
NECX.com LLC (www.necx.com), a wholly-owned subsidiary of VerticalNet, Inc., operates the Global Electronics Exchange, a leading B2B open market exchange for electronics hardware. NECX.com provides a high degree of product and market liquidity by aggregating supply and demand from thousands of component, original equipment and contract manufacturers; as well as distributors and resellers. The Exchange provides comprehensive services such as production procurement and inventory management, trading, financial settlement, as well as global logistics and quality assurance. NECX.com operates its Asia-Pacific business from Singapore and its European operations from Galway, Ireland and Stockholm, Sweden.
About VerticalNet, Inc.
VerticalNet, Inc. (www.verticalnet.com), owns and operates 55 industry-specific Web sites designed as online business-to-business communities, known as vertical trade communities. These vertical trade communities provide users with comprehensive sources of information, interaction and e-commerce. They are grouped into the following industry sectors: ADVANCED TECHNOLOGIES, COMMUNICATIONS, ENVIRONMENTAL, FOOD AND PACKAGING, FOODSERVICE AND HOSPITALITY, HEALTHCARE/SCIENCE, MANUFACTURING AND METALS, PROCESS, PUBLIC SECTOR, SERVICE, TEXTILES AND APPAREL.
Additionally, VerticalNet provides auctions, catalogs, bookstores, career services and other e-commerce capabilities horizontally across its communities with sites like Industry Deals.com, IT CareerHub.com, LabX.com, and Professional Store.com. VerticalNet's wholly-owned subsidiary NECX.com LLC operates the Global Electronics Exchange that provides an exchange for the electronic components and computer products industry.
This announcement contains forward-looking statements that involve risks and uncertainties, including statements relating (i) to the expectations that the integration of NECX.com, the Advanced Technologies Group and the Communications Group will be complete in the next 120 days, (ii) plans to increase the power of VerticalNet's horizontal communities by leveraging the content of its vertical trade communities, (iii) as well as statements that are preceded by, followed by or include the words "believes," "plans," "intends," "expects," "anticipates," or similar expressions. For such statements, VerticalNet claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ from those contained in the forward-looking statements include potential technology issues releating to the integration of the units, difficulties building and maintaining the content of its communities, as well as, those factors set forth in VerticalNet's Annual Report on Form 10-K for the period ended December 31, 1999, which has been filed with the SEC. VerticalNet undertakes no responsibilities to publicly update or revise any of the forward-looking statements that may be in this release.
VerticalNet is the registered trademark of VerticalNet, Inc. All other names are trademarks and/or registered trademarks of their respective owners.