New York, August 23, 2000
chinadotcom Gains Access to Full Suite of 24/7 Media's Interactive Marketing Solutions and Extends Geographic Footprint as part of Perpetual JV
— chinadotcom corporation (NASDAQ: CHINA; website: www.corp.china.com), the leading pan-Asian integrated Internet company, and 24/7 Media, Inc. (NASDAQ: TFSM), one of the largest global interactive marketing and technology companies, today announced an agreement that will expand the two companies' strategic partnership. Under the expanded relationship, 24/7 Media will provide its industry leading technology-based marketing solutions to 24/7 Media Asia, a subsidiary of chinadotcom. These marketing services include 24/7 Mail, a targeted e-mail marketing solution; 24/7 Connect, an online advertising results measurement technology; and AwardTrack, a customer reward program that develops customer affinity and loyalty.
chinadotcom and 24/7 Media's relationship has been rewarding for both parties since its inception in December 1998. The success of this alliance and the mutual confidence it represents in the future of the Asian Internet market is being recognized through the agreement's extension of the seven year franchise to a perpetual license.
This agreement extends 24/7 Media Asia's reach into the Asia Pacific region by two additional countries with considerable market potential: India, with the world's second largest population, and New Zealand, a relatively mature Internet market in the Asia Pacific region.
"chinadotcom has executed its strategy of establishing 24/7 Media Asia as a dominant player in the online advertising market in Asia," said David J. Moore, chief executive officer of 24/7 Media. "This agreement enables 24/7 Media to deliver its full suite of online solutions to the largest marketplace in the world. The combination of our broad range of technology solutions with now the largest reach of any online media company in the world makes our competitive position exceptionally compelling. Additionally, we are very pleased that the expansion of this relationship further strengthens the mutual commitment between 24/7 Media and chinadotcom. Our leading technology and products combined with 24/7 Media Asia's expansive reach will further solidify 24/7 Media Asia's leadership position."
"Access to these proprietary end-to-end technology-based marketing solutions will improve our operating efficiency. The solutions also provide us with many opportunities to generate additional revenue and enhance our capability to help Web sites generate income from their inventory," commented Peter Hamilton, Chief Operating Officer of chinadotcom. "The highly targeted, one-on-one nature of 24/7 Mail has allowed sites in the USA to generate sales at CPM's up to 5 times that achieved by traditional banners, while Advertisers and Direct Marketers are able to achieve a higher return on their investment through more accurate targeting and higher response rates. 24/7 Connect enables us to deliver a multitude of high margin revenue streams through its global operating platform," he continued. "Together with AwardTrack, we are highly confident these value-added services that we can provide to an expanded customer base which spans the largest continent in the world will increase traffic on their Web sites, thereby generating incremental revenue and significantly enhancing customer retention. For chinadotcom, the addition of advanced customer acquisition, retention and reward solutions gives us a distinctive competitive advantage that should translate into improving operating margins."
As part of this agreement, chinadotcom now becomes 24/7 Media's largest shareholder with an approximate seven percent interest in of 24/7 Media Inc.; 2.5 million shares of 24/7 Media Inc. common stock will be issued to chinadotcom. In exchange, 24/7 Media Inc. will acquire a 19.9 percent interest in chinadotcom's subsidiary, 24/7 Media Asia. Peter Yip, Chief Executive Officer of chinadotcom, will join 24/7 Media's Board of Directors. As a result of the 1998 agreement that established 24/7 Media Asia, 24/7 Media is a strategic shareholder of chinadotcom corporation, owning 5.7 million shares that represent a six percent interest. David J. Moore, Chief Executive Officer of 24/7 Media, is a member of the Board of Directors of chinadotcom.
About 24/7 Media Inc.
24/7 Media Inc. is a leading global provider of end-to-end interactive technology and marketing solutions and services for Web publishers, online advertisers, advertising agencies, e-marketers and e-commerce merchants. 24/7 Media provides a comprehensive suite of media and technology products and services that enable these client groups to attract and retain customers worldwide, and to reap the benefits of interactive and other electronic media. Our solutions include advertising and direct marketing sales, ad serving, promotions, email list management, email list brokerage, email delivery, data analysis, loyalty marketing and convergence solutions, all delivered from our industry-leading data and technology platforms. Our 24/7 Connect ad serving technology solutions are designed specifically for the demands and needs of advertisers and agencies, Web publishers and e-commerce merchants. Based in New York, 24/7 Media Inc. has offices in 51 cities in 28 countries. For more information, please visit www.247media.com.
About chinadotcom corporation
chinadotcom corporation (NASDAQ: CHINA; Website: www.corp.china.com) is a leading pan-Asian Internet company offering web solutions, portal and online advertising services. Through its three business units, chinadotcom provides a full range of Internet services around the Asia Pacific region that; 1) build e-business strategies and solutions (Web Connection), 2) distribute content via its portal network platform (china.com, cww.com, hongkong.com, and taiwan.com), and 3) sell services through online marketing (24/7 Media Asia Limited).
Fuelling the growth of each of these three business units is a synergistic investment strategy that leverages on chinadotcom's existing operational and cost infrastructure. By partnering with companies that have proven and successful track records, such as America Online, Softbank, Trans Cosmos and Agence France Presse, chinadotcom is well positioned to create long term shareholder value through its investments.
The company has 28* offices across more than 10 markets, including Japan, Korea, Australia, China, Hong Kong, Taiwan, Singapore, Thailand, Malaysia, and the USA. For more information about chinadotcom corporation, please visit www.corp.china.com
*The number refers to offices of chinadotcom corporation, its business units and wholly owned subsidiaries.
Safe Harbor Statement
The statements in this news release, other than the historical financial information, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Further information on risk factors that could affect chinadotcom corporation's results of operations is detailed in chinadotcom corporation's registration statements and annual report, as filed with the United States Securities and Exchange Commission.
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