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HP and uBid.com Announce B2C Pilot Retail and Web Technology Infrastructure and B2C Retail Agreement
uBid Adds HP Technology and IT Services, Auctions Latest HP Products
PALO ALTO, Calif. & CHICAGO, Oct. 26, 2000
Hewlett-Packard Company (NYSE: HWP) and uBid, a leading business-to-consumer (B2C) Internet auction company and majority-owned operating company of CMGI, Inc., today announced an agreement whereby HP will become a technology partner for Web infrastructure and e-services for uBid.com. In addition, a selection of HP's latest products is expected to be available next month to customers through uBid's online auction site.
uBid has selected HP to provide always-on Internet infrastructure, including hardware, software and middleware, to power its Web business that attracts more than 5 million visitors each month. As a result of the HP and uBid B2C retail pilot agreement, which will run for up to one year, these visitors now have access to HP's in-demand retail products. uBid and HP also plan to collaborate on development of mobile e-services that will allow uBid customers to participate in auctions through wireless devices.
"Success in the new Internet economy is about superior customer experience," said Ann Livermore, president, HP Business Customer Organization. "HP and uBid will be working together to ensure that the uBid.com Web auction is always on, to improve the quality of service for uBid customers, and to develop new e-services, such as extending uBid.com's auctions to mobile and wireless devices. At the same time, the uBid auction model gives us a new channel through which to reach consumers of our own products. This is clearly a win-win for both our companies."
"uBid is already one of the highest transaction volume Windows NTŪ Web sites, and we anticipate high rates of growth in auction volume in the short and long term," said Greg Jones, CEO, uBid. "We are always looking for technology partners that enable uBid to enhance the online auction experience for our customers today, as well as support the growth for which we're poised. In addition, we believe HP can help us extend our online auction model into the mobile and wireless world."
B2C Pilot Retail Agreement
uBid customers anywhere in the United States will soon be able to bid online for HP products, such as digital cameras, PDAs and printers. Customers' bids determine the final selling price and all purchases are backed by a full HP warranty. This component of the agreement represents a new business model for online auction sites that typically offer surplus and excess products only.
The pilot agreement provides HP with an innovative channel for reaching its customers and making its in-demand products widely available. This channel is powered by uBid's technology, where the final price is determined by customer bidding, site traffic, and product supply and demand.
Web Technology Infrastructure
In order to continue to ensure the highest levels of availability, performance, security and scalability, uBid plans to add HP technology, including HP OpenView and IT e-services, such as message broadcast and laser beam capability, to enhance and expand its existing Internet infrastructure.
In addition, HP will provide uBid with consulting and mission-critical support services to help with the design, implementation and ongoing maintenance of its Internet infrastructure, as well as support its move to mobile and wireless e-services.
uBid.com, a majority-owned operating company of CMGI, Inc., is a leading online auction and e-commerce site that offers consumers and small-to-mid-sized businesses the opportunity to "set the price" on a wide range of brand name merchandise through live-action bidding using sophisticated auction technology. The company's Internet auctions feature a rotating selection of more than 12,000 items in each daily auction. Consumers can browse in more than 12 different product categories, including: computer equipment, consumer electronics, home and leisure, sports and recreation, jewelry and gifts, apparel, home improvement products, art, appliances, and travel and events.
With more than 1.5 million registered users, uBid is committed to providing all customers with the highest quality auction experience on the Internet and offers supplier warranties on most consumer products. uBid.com also meets Better Business Bureau Online standards, which gives customers the confidence and security to bid safely online. For more information, visit the company's Web site at www.ubid.com.
Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that's always on.
HP has 86,000 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.
Windows NT is a U.S. registered trademark of Microsoft Corporation.
UBid and uBid.com are trademarks of uBid, Inc. All other products and services mentioned may be trademarks or service marks of their respective owners.
This press release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are forward-looking statements. Risks, uncertainties and assumptions include the possibility that the integration of HP technology and support services into the operation of uBid's Web site may not be successful, the market for the sale of certain HP products and services to uBid customers may not develop as expected, uBid and HP may not successfully develop mobile e-services and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's annual report on Form 10-K for the year ended Oct. 31, 1999, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions prove incorrect, HP's results could differ materially from HP's expectations in these statements. HP does not intend to update these forward-looking statements.
This release contains forward-looking statements which address a variety of subjects including, for example, the expected benefits of the agreements between uBid and HP, the expected ability of uBid to offer and sell HP products, the expected growth in uBid's auction volume and the expected move by uBid to mobile and wireless e-services. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: uBid's growth and success depends on the continued and increased acceptance of its website and the Internet as a medium; consumer preferences for the products offered by uBid may change rapidly; uBid's technologies may not successfully interoperate with those of third parties; and increased competition and technological changes in the markets in which uBid competes. For a detailed discussion of these and other cautionary statements, please refer to CMGI's filings with the Securities and Exchange Commission, including CMGI's most recent Quarterly Report on Form 10-Q.