VCIX:Jan27PressReleaseThursday January 27, 9:19 am Eastern Time
Company Press Release
ITM Communications Selects Virtual Communities Inc. to Develop Activate2000.COM
UK Company Signs Letter of Intent to Use VCI's Community Management Solution To Launch Site in 90 Days
NEW YORK--(BUSINESS WIRE)--Jan. 27, 2000-- Virtual Communities Inc. (Nasdaq: VCIX - news), provider of turnkey solutions for the development and management of Web-based communities, today announced that ITM Communications has signed a letter of intent to acquire VCI's fully integrated technology and service solution to power areas of Activate2000.com, its online community for students in the United Kingdom. Activate2000.com, which is currently used for recruiting purposes by leading employers such as Arthur Andersen, IBM, and Sony, will use VCI's Community Management Solution to turn the site into a robust community focused on student lifestyle content, including career opportunities and information together with specially designed product and service offers and promotions. Activate2000.com has an exclusive, long-term agreement with the National Union of Students to promote the career site to its 3 million student members.
Under the terms of the letter of intent, VCI expects to receive (pound)500,000 (approximately $825,000) in cash and equity in ITM Communications as well as regular monthly payments for ongoing services and maintenance. Although the letter of intent is non-binding, VCI and ITM expect to sign a final agreement within 30 days.
CMS, developed by VCI after building numerous online communities, offers Activate2000.com a comprehensive solution, including cutting-edge tools for content aggregation, community design and development services, powerful e-commerce functionality, advertising management, system administration, 24/7 support and maintenance, software upgrades, and hosting. VCI will also integrate a suite of more than 20 visitor retention modules including chat, bulletin boards, forums, and email accounts.
``We are building the leading community for the student market and VCI will enable us to quickly develop a rich site, with e-commerce, content management, and interactive tools,'' said Ian Rose, CEO of ITN Communications. ``VCI offers a unique solution to the problem of building a complete online community without the time and expense of approaching multiple vendors.''
``We are excited to be involved with a high-profile site like Activate2000.com, which has the ability to dominate their niche online. ITM already has a (pound)80 million valuation and plans a float later in the year,'' said Avi Moskowitz, CEO of Virtual Communities Inc. ``Working with a Community ASP like VCI will allow the Activate team to focus on what they do best - build content and services for students and recruiters, and generate revenue from the ensuing traffic.''
About the Companies
Virtual Communities Inc. markets its proprietary Community Management Solution (CMS) to organizations interested in building their own web-based communities. CMS, developed by VCI after building numerous online communities, offers these customers a complete single-source solution, including VCI's Community Content Server, cutting-edge tools for content aggregation, interactive features, and community design and development services. VCI also develops, acquires and operates web-based communities targeted to U.S. ethnic and affinity groups. VCI's current network of communities includes: virtualjerusalem.com, virtualireland.com, virtualitaly.com, virtualindia.com and virtualholyland.com.
ITM Communications' site, Activate2000.com, was originally designed as a branded experience directed at the UK's undergraduate population. The primary product is an Internet based interactive multimedia graduate recruitment directory supported by other informational and lifestyle content of direct interest to students. Its ultimate mission is to become the on-line provider of information and goods to the student population.
Certain statements in this news release regarding the company's expectations, estimates; present view of circumstances or events, and statements containing words such as estimates, anticipates, intends, and expects, or words of similar import, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements indicate uncertainty and the company can give no assurance with regard to actual outcomes. Specific risk factors may include, without limitation, the company's inability to enter into definitive agreements and uncertainty of the continuation of working relationships with strategic business partners, possible downturns in business conditions; increased competition; loss of significant customers; availability of qualified personnel and timely deployment of company resources.
For additional information visit the Virtual Communities Inc. Web site at www.vcix.com.
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Contact:
VIRTUAL COMMUNITIES INC.
Amy Wasserman, Director of Communications
212-931-8965
amyw@vcimail.com