Strategic Alliance with Freeserve
Netcall PLC
13 April 2000
FREESERVE PLC ('FREESERVE') AND NETCALL PLC ('NETCALL')
STRATEGIC ALLIANCE
FREESERVE TO ACQUIRE SHAREHOLDING IN NETCALL
NETCALL TO PURCHASE TELEPOST SHAREHOLDING FROM FREESERVE
Freeserve, the UK's leading Internet portal, today
announces that it has agreed to subscribe for 2.5 million
new ordinary shares in NetCall, the leading Internet-
controlled telephony business, for a total consideration
of £4.5 million in cash, representing 8.6 per cent. of
the issued share capital of NetCall as enlarged. As part
of the same transaction, NetCall has agreed to purchase
from Freeserve approximately 1.8 million shares in
TelePost Inc., representing approximately 19.9% of the
issued share capital of TelePost, the US based provider
of unified messaging and collaboration services on
Freeserve's portal, for £4.5 million in cash.
Completion of this transaction is subject to the passing
of a resolution at an Extraordinary General Meeting
('EGM') of NetCall to be held on or before 22nd May, 2000
to authorise the directors of NetCall to issue the new
shares to Freeserve. A circular incorporating a notice
of this EGM will be sent to NetCall shareholders shortly.
Following the completion of this transaction Freeserve
and NetCall intend to enter into an alliance to enable
NetCall to integrate its various business solutions into
Freeserve's existing online product range. These include
the Business Portal and Store Builder Solution, Alerts
Services and Personal Web Page Building Solution. NetCall
will also offer Freeserve partners the ability to
integrate NetCall solutions into their commercial
offerings.
The alliance will involve Freeserve working with NetCall
to offer its interactive HyperPhone Linktm technology to
Freeserve's existing 1.9 million registered members and
also to introduce it to Freeserve's business partners in
the areas of classified advertising, auctions,
recruitment, estate agency and online car sales.
HyperPhone Link and other NetCall technologies in
addition to TelePost's conferencing and presentation
services will also feature in Freeserve's Internet portal
aimed at owners, managers and employees of small
businesses which Freeserve is developing with Barclays
Plc in a recently announced joint venture.
NetCall will also work with TelePost on bi-lateral
distribution arrangements in the UK, Europe and North
America using platforms and networks already deployed in
the US, UK and Europe by TelePost.
The distribution partners accessible through TelePost
connections gives NetCall access to leading companies in
the US and Europe. Current TelePost distributors
include: Office Depot, Hello Direct, Compaq Computer
Corp., Bank of America, EuroTelecom Connect, RSL.com,
NETnet and GTS.
Freeserve's share of the issued share capital of TelePost
will be reduced from 53.4 per cent. to 33.4 per cent.
following this transaction. Including the warrants
attached to a loan note investment in TelePost, Freeserve
will maintain a 39.5 per cent. interest in the fully
diluted share capital of TelePost.
TelePost made a loss before tax of $20.8m for the year
ended June 1999. As at June 30, 1999 TelePost's net
assets were $14.5m.
John Pluthero, Chief Executive Officer of Freeserve
commented:
'This is a three-way-win for Freeserve, NetCall and
TelePost. The product range and services we can offer to
our customers, and the complementary technology and
distribution that TelePost and NetCall have, gives each
of us the opportunity to create significant value in our
businesses. Web-enabled communications services are
expected to see exponential growth and a strategic
relationship cemented by an equity interest in both
NetCall and TelePost puts Freeserve in a powerful
position to exploit this throughout Europe, the UK and
US.'
Jeffrey Rubins, Chairman of NetCall, commented:
'This alliance with Freeserve is a major strategic step
for NetCall. We feel our unique product range and
diverse Internet business solutions packages will greatly
enhance Freeserve's overall business proposition. By the
same token, these new relationships with Freeserve and
TelePost will allow NetCall to roll out its suite of
services throughout the UK, Europe and US, at a much
higher rate than previously would have been possible.'
Bruce Runyan, President & Chief Operating Officer of
TelePost, commented:
'This powerful alliance of consumer and business web-
enabled telephony solutions is extremely beneficial for
TelePost. TelePost and NetCall's strongly complementary
product sets enable us to leverage our alternative
distribution channels more effectively and is a direct
route to extending our geographical reach.'
Enquiries:
Freeserve
Citigate Dewe Rogerson
Julian Walker or Patrick Toyne-Sewell Tel: 020 7638 9571
Paul Barker Investor relations Tel: 01442 355 764
Stephen Pang Public relations Tel: 01442 882 530
NetCall
College Hill
Nicola Weiner or Archie Berens Tel: 020 7457 2020
Jeffrey Rubins Chairman Tel: 01480 495 300
David Rothschild Chief Executive Tel: 01480 495 300
TelePost
Frank Teruel Chief Financial Officer Tel: +1 408 355 7140
& Board Member
About Freeserve
Freeserve is the UK's leading Internet portal with an
integrated offering of UK-focused content, e-commerce
services and free Internet access. At 12 March 2000,
Freeserve had 1.9 million active registered accounts and
162.8 million page impressions in February 2000.
Freeserve was launched in September 1998 as part of
Dixons, Europe's leading consumer electronics retailer.
Freeserve distributes its access software through Dixons'
network of over 1,000 Dixons, Currys, PC World, The Link
and @Jakarta stores.
About NetCall
NetCall is a pioneer in the field of Internet-controlled
telephony, the area of e-commerce that turns web browsing
into profit. Since 1996, NetCall has been developing
Hyperphone Link technology, one of the most effective
interactive tools available, putting the customer in
control and creating a whole new dimension to commercial
business models. Hyperphone link technology can be
easily installed with little hardware or software
expertise. NetCall can generate telephone calls from a
webscreen, an e-mail, a digital TV control, a data feed
or from any public phone network. NetCall's applications
are low cost, flexible and designed to integrate easily
within customers existing telephony and information
systems. In addition to established products, Netcall
now offers WAP enabled audio conferencing and Hotdesk - a
real-time screen interaction between a browser and call
centres.
NetCall offers the business community the combined
feature of not only utilising telephonic expertise but
also harnesses one of the fastest growing communication
advancements of recent times - The Internet.
About TelePost
TelePost is a leading provider of web-based
communications solutions directed at individuals and
businesses. TelePost partners with telecommunication
companies, Internet Service Providers (ISPs), and other
communication providers to market a comprehensive suite
of communication services to this market. The TelePost
suite of services addresses a large spectrum of
communications needs from unified messaging where all
electronic and voice communication are unified into one
email in-box, to cutting edge dynamic conferencing and
presentation solutions which allow businesses to use the
power of the Internet to manage their conferencing and
presentation needs. Because TelePost offers
communications solutions as a managed service, its
customers don't have to purchase any additional
infrastructure.