EasyLink Sells MailWatch E-Mail Security Business to Infocrossing for $5 Million in Cash and Stock
PISCATAWAY, N.J.--(BUSINESS WIRE)--Aug. 4, 2004--EasyLink Services Corporation (NASDAQ: EASY), a leading global provider of services that power the exchange of information between enterprises, their trading communities and their customers, today reported the sale of MailWatch, a business focused on outsourced e-mail security solutions to Infocrossing, Inc. (NASDAQ: IFOX). EasyLink received $3.5 million in cash and 123,193 shares of Infocrossing common stock, valued at approximately $1.5 million based on the average last quoted sales price for the ten (10) trading days immediately prior to the effective date which occurred on August 1, 2004.
MailWatch was originally a service offering of EasyLink predecessor, Mail.com, which was primarily focused on the e-mail outsourcing market, and was not clearly aligned with EasyLink's core Transaction Delivery and Management strategy. EasyLink President and CEO Thomas Murawski commented: "MailWatch is a robust e-mail security solution that blocks spam, viruses, and other unwanted e-mail from entering clients' corporate e-mail networks. We are pleased to have concluded this agreement with Infocrossing, a company with significant expertise in computing operations and a solid history of providing selective IT outsourcing services to enterprise clients." Murawski added: "Our divestiture of MailWatch allows us to bring additional focus to our core Transaction Delivery and Management businesses, and provides additional capital to fund strategic growth initiatives."
About EasyLink Services Corporation
EasyLink Services Corporation (NASDAQ: EASY), headquartered in Piscataway, New Jersey, is a leading global provider of services that power the exchange of information between enterprises, their trading communities, and their customers. EasyLink's networks facilitate transactions that are integral to the movement of money, materials, products, and people in the global economy, such as insurance claims, trade and travel confirmations, purchase orders, invoices, shipping notices and funds transfers, among many others. EasyLink helps companies become more competitive by providing the most secure, efficient, reliable, and flexible means of conducting business electronically. For more information, please visit www.EasyLink.com.
This news release may contain statements of a forward-looking nature relating to the future events or the future financial results of EasyLink. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially. In evaluating such statements, investors should specifically consider the various factors which could cause actual events or results to differ materially from those indicated from such forward-looking statements, including the matters set forth in the Company's reports and documents filed from time to time with the Securities and Exchange Commission.
Contacts
EasyLink Services Corporation
Investor Contact:
Michael Doyle
mdoyle@EasyLink.com
or
Media Contact:
Keating and Company
Gene King, 973-966-1100
gking@keatingco.com
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