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Parago, Inc. 214.775.4416 Matthew Rose The MWW Group 201.507.9500 PARAGO SELLS ITS CREATIVE SERVICES GROUP TO XPEDIORDALLAS, TX & CHICAGO, IL, September 19, 2000 ¾ Parago, Inc., a promotional marketing eCRM company and subsidiary of CT Holdings (NASDAQ: CITN), and Xpedior Incorporated (NASDAQ: XPDR), a leading provider of eBusiness solutions to Global 2000 companies and emerging digital businesses, today announced that Xpedior will acquire certain assets from Parago, formerly How2.com, that will expand Xpedior's creative services capabilities. Under the terms of the agreement, Xpedior has agreed to acquire Parago's Creative Services Group, including up to 24 of Parago’s creative design employees who will become part of Xpedior’s creative services team, and certain related assets. These strong additions to Xpedior’s creative services will permit Xpedior to offer more robust interactive design, animation, and information architecture capabilities as well as instructional content development skills.
Parago is exclusively a business to business eCRM company, focused on promotional management. Parago helps its clients increase sales, reduce costs and enhance customer loyalty through its Continuous Customer InteractionSM model. As a result of the change in its business focus, the creative capabilities in its Los Angeles operation were no longer essential to its business model.
Ken
Johnsen, President and CEO of Parago said, “We are very excited for the
members of our creative team that are joining Xpedior and are pleased for
Parago’s shareholders. The sale of our Creative Services Group in
exchange for Xpedior shares will reduce our burn rate and accelerate our
path to profitability and will benefit shareholders by obtaining a
valuable asset. We are confident that Xpedior will provide an excellent
creative outlet for our talented web design staff. In addition, we look
forward to working with Xpedior to leverage the strengths of each company.
We believe that Parago’s Continuous Customer InteractionSM
model, combined with Xpedior’s world class e-commerce capabilities, will
create a powerful value proposition for their clients.” “Building our creative services capability is a critical differentiator in our space,” said David Campbell, President and CEO of Xpedior. “This expansion will further position Xpedior to deliver the most competitive solutions with an innovative approach to eBusiness that tightly integrates our creative and technology consulting solutions offerings.”
The new members of the creative team will also bring a number of skill sets such as streaming media and online illustration, and will enhance Xpedior’s already strong creative services team and their associated products.
Under
the terms of the agreement, Xpedior will issue to Parago a minimum of
150,000 and a maximum of 179,540 new shares of Xpedior common stock in
exchange for the assets acquired by Xpedior.
The transaction is expected to close in October 2000, subject to
customary closing conditions.
About Parago
Parago's patent-pending technology and processes represent fresh and innovative approaches designed to improve the promotional marketing industry. We provide a range of Internet-based customer relationship management solutions – PromoCenter, InfoCenter and KnowledgeCenter, that are designed to increase sales, reduce costs, improve loyalty and enhance customer retention for our clients. We call this process our Continuous Customer InteractionSM model, which helps retailers, manufacturers and service organizations reduce the cost of conducting promotions and drive incremental revenue by cross selling and upselling new products and services. During this process, we capture transaction data and buyer demographics – information that is used by our clients to improve their promotional marketing programs and create retention and loyalty programs.
About CT Holdings
CT Holdings, Inc., is an incubator for early stage Internet companies (www.ct-holdings.com). CT Holdings' incubator ventures include Parago and River Logic. Forward-Looking Statements: This news release contains forward-looking statements, which involve risks and uncertainties. Accordingly, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements. These factors include the risks and uncertainties discussed in documents filed with the Securities and Exchange Commission by CT Holdings or Parago. Neither CT Holdings nor Parago undertakes any
obligation to publicly release the result of any revisions to these
forward-looking statements, which may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
About Xpedior
Visit Xpedior at www.xpedior.com or call 1-877-XPEDIOR. This press release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. In particular, statements regarding the company's expected
performance are based upon management's current expectations and beliefs
and are subject to a number of known and unknown risks and uncertainties
that could cause actual results to differ materially from those described
in the preceding forward-looking statements. The following factors known
to management, among others, could cause actual results to differ
materially from those described in the preceding forward-looking
statements: the company's ability to continue to attract new clients and
obtain new and expanded assignments from existing clients; the company's
ability to retain its personnel and continue to hire, train and timely
deploy new personnel on client engagements; the company's ability to
manage, maintain and promote its brand, and the recognition of its brand,
in the marketplace; management of the company's growth and successful
integration of the company's operations; continued robust growth in demand
in the United States and abroad for eBusiness consulting services such as
those offered by the company; and the effect of intensifying competition
among a rising number of companies offering services similar to those
offered by the company. In addition, Xpedior encourages you to review the
company's latest reports filed with the SEC, including Xpedior's Annual
Report on Form 10-K filed with the SEC , and the company’s subsequent
Quarterly Reports on Form 10-Q also filed with the SEC, which describe a
number of additional risks and uncertainties that could cause actual
results to differ materially from those expected in the forward-looking
statements made in this press release.
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