Brad Leone, 3Com Corp., 408/326-2428
brad_leone@3com.com
Jessica McNulty, USWeb/CKS, 415/369-6722
jmcnulty@uswebcks.com
3Com, USWeb/CKS Form Global Alliance to Deliver E-Business Solutions
Alliance To Develop, Market and Deliver Wireless Solutions for the Mobile Workplace and Converged Voice, Video and Data Solutions
Santa Clara and San Francisco - December 16, 1999 - 3Com Corporation (Nasdaq: COMS), the market-leading provider of e-Networks, and USWeb/CKS (Nasdaq: USWB), the leader in Internet professional services, today announced the formation of a strategic global alliance to develop, market and deliver wireless applications for the mobile workplace and converged voice, video and data solutions. Under the alliance, the parties intend that 3Com will contribute up to $100 million in a combination of funded development and an equity investment in USWeb/CKS. The first e-business solution to be developed under the alliance is expected to be delivered in the second half of next year.
“The rules of business have been re-written. Every business interested in succeeding must figure out how it will fit into the new e-economy,” said Bruce Claflin, 3Com President and COO. “3Com provides best-of-breed networking solutions; USWeb/CKS is a premier Internet consultant that delivers breakthrough results. Together, we can give our customers high availability, anytime, anywhere access and the e-business applications they need to succeed.”
“Clients are faced with the opportunity to extend their brands and business relationships to people — anywhere, anytime,” said Robert Shaw, CEO, USWeb/CKS. “This alliance marks our commitment to help our clients take advantage of technological innovations and succeed in the digital economy.”
Scalable Solutions Targeted to Enterprise and Service Provider Markets
A combined worldwide team will offer scalable e-business solutions for enterprise customers and service providers. Based upon a series of packaged solutions, consultants from USWeb/CKS and 3Com Consulting Services can engage with customers to deliver solutions tailored to their specific e-business requirements. The companies are offering customers insight into the entire commerce chain — from the back-end business systems all the way to the end consumer.
Centers of Excellence
The two companies will showcase solutions based on emerging technologies, including wireless solutions for the mobile workplace and converged voice, video and data solutions, in USWeb/CKS Centers of Excellence. The Centers of Excellence will be established worldwide to act as technology development labs. The solutions will also be showcased in the 3Com Convergence Lab at 3Com’s Santa Clara headquarters.
The alliance is a major step for 3Com’s e-Networks strategy and its expanded capabilities to deliver e-business solutions. In November, the company outlined its strategy for building e-Networks for e-business applications. That strategy applies the company’s strengths – delivering highly availability, anytime, anywhere access and applications critical for economic success in the 21st Century.
Financial Details
Under the alliance, the parties intend that 3Com will fund development work by USWeb/CKS. In addition, subject to satisfaction of certain conditions, 3Com may purchase up to $40 million of USWeb/CKS stock. Further, also subject to certain conditions, 3Com has the right to acquire warrants to purchase additional shares of USWeb/CKS stock. The warrants would be purchased at the fair market value of the warrant rights, and would have an exercise price based on the market value of USWeb/CKS’ stock at the time of warrant issuance.
About USWeb/CKS
USWeb/CKS (Nasdaq: USWB) seeks to transform businesses in the digital economy and create sustainable market leadership for its clients. As the leading Internet professional services firm, USWeb/CKS has created a new standard for success in the digital economy – Time-to-Value. Time-to-Value means USWeb/CKS applies its extensive insight, experience and scale to deliver breakthrough results quickly. The Company is headquartered in San Francisco, California, with more than 4,000 professionals in 13 countries around the world. USWeb/CKS recently announced its intention to merge with Whittman-Hart Corporation. Additional information about USWeb/CKS is available by calling 415/284-7070.
About 3Com Corporation
With over 300 million customer connections worldwide, 3Com Corporation connects more people and organizations to information and each other in more innovative, simple and reliable ways than any other networking company. 3Com delivers e-Networking solutions through information access products and network systems to enterprises, small businesses, consumers, carriers and network service providers. 3Com — More connected.™ For further information, visit 3Com's World Wide Web site at www.3com.com or the press site at www.3com.com/pressbox.
3Com is a registered trademark and Palm and More connected. are trademarks of 3Com Corporation or its subsidiaries. All other company and product names may be trademarks of the respective companies with which they are associated.