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CUSEEME NETWORKS, INC.
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PRESS RELEASE
CONTACTS:
Tanya Prather Meredith Bagnulo
CUseeMe Networks Merritt Group
603.886.9050 ext 359 703.556.6300 ext. 122
tprather@cuseeme.com bagnulo@merrittgrp.com
CUSEEME NETWORKS ANNOUNCES REDUCTION IN WORKFORCE
NASHUA, New Hampshire - June 5, 2001 - CUseeMe(R) Networks, Inc. (NASDAQ: CUSM)
today announced that it has reorganized its workforce in order to control costs.
As a result of the reorganization, the Company is laying off 26 employees and
has eliminated nine additional positions that were open due to attrition in the
ordinary course of business. The majority of lay-offs are effective immediately;
a small number of affected employees will be retained for a transition period.
The elimination of these 35 positions will result in a 28 percent total
reduction in the Company's workforce.
"In anticipation of our impending merger with First Virtual Communications, we
are recognizing operational efficiencies by streamlining the organization," said
Killko Caballero, president and CEO of CUseeMe Networks. "We have eliminated
positions due to redundancies and alignment of resources across the joint
organization, which we believe will enable us to be a stronger, more agile
company post merger. Additionally, we believe the reorganization will reduce our
cash burn rate and better position us to take advantage of the future growth
opportunities we've defined."
The announced reorganization includes the elimination of positions across the
Company, and a number of cuts relating to certain non-core and low margin
products and services. The Company expects that the reorganization will result
in savings of approximately $2.5 million a year.
The Company will be holding a special meeting on June 19, 2001 to allow
shareholders to vote on the proposed merger with First Virtual
Communications. In the event that the merger is not approved, the Company
will take appropriate measures designed to ensure that the organization is
able to meet operational demands.
ABOUT CUSEEME NETWORKS
CUseeMe Networks is a leading provider of innovative technologies that enable
voice and visual communications over IP-based networks. CUseeMe Networks
provides cost-effective, integrated end-to-end software solutions for
large-scale deployments of video collaboration to enterprise desktops. With over
a decade of IP-based communications experience, CUseeMe Networks is the pioneer
in interactive voice, video, and data collaboration. Its award-winning
technology facilitates standards-based collaborative communications, both
one-on-one and in groups, over corporate intranets, virtual private networks
(VPNs), and the open Internet. Products such as the CUseeMe Conference Server, a
software-based multipoint control unit (MCU), and CUseeMe Web, a flexible
web-based desktop videoconferencing client technology, work hand-in-hand to
provide maximum flexibility, seamless integration, and scalability, in
combination with outstanding performance, reliability, and features. The
company's desktop conferencing solutions can be integrated seamlessly into
popular enterprise messaging and collaboration environments such as Microsoft
Exchange. CUseeMe Networks partners with resellers, integrators and service
providers to deploy its solutions worldwide. Information about CUseeMe Networks
can be found on the web at http://www.cuseeme.com.
ALL TRADEMARKS ARE RECOGNIZED.
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SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
EXCEPT FOR THE HISTORICAL INFORMATION CONTAINED HEREIN, THIS NEWS RELEASE
CONTAINS FORWARD-LOOKING STATEMENTS IN THE SECOND, THIRD AND FOURTH
PARAGRAPHS, INCLUDING, WITHOUT LIMITATION, STATEMENTS CONTAINING THE WORDS,
"BELIEVES," "ANTICIPATES," "EXPECTS" AND WORDS OF SIMILAR IMPORT. SUCH
FORWARD-LOOKING STATEMENTS HAVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND
OTHER FACTORS THAT MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS
OF THE COMPANY AFTER THE MERGER OR INDUSTRY RESULTS TO BE MATERIALLY
DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH
FACTORS INCLUDE, AMONG OTHERS: RISKS ASSOCIATED WITH DIFFICULTIES IN
SUCCESSFULLY INTEGRATING THE BUSINESSES AND TECHNOLOGIES AFTER THE MERGER;
COSTS RELATED TO THE MERGER; FAILURE TO OBTAIN REQUIRED STOCKHOLDER APPROVALS
OF THE MERGER; FAILURE OF THE COMBINED COMPANY TO RETAIN AND HIRE KEY
EXECUTIVES, TECHNICAL PERSONNEL AND OTHER EMPLOYEES; DIFFICULTY OF
SUCCESSFULLY MANAGING A LARGE ORGANIZATION; MARKET ACCEPTANCE OF VIDEO
TECHNOLOGY; POTENTIAL INABILITY TO MAINTAIN BUSINESS RELATIONSHIPS WITH
TELECOMMUNICATIONS CARRIERS, DISTRIBUTORS AND SUPPLIERS; RAPID TECHNOLOGICAL
CHANGES; COMPETITION IN THE VIDEO NETWORKING INDUSTRY; CONSOLIDATION AND COST
PRESSURES IN THE VIDEO NETWORKING INDUSTRY; AND OTHER RISK FACTORS REFERENCED
IN FIRST VIRTUAL COMMUNICATIONS' AND CUSEEME NETWORKS' PUBLIC FILINGS WITH
THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE COMPANIES' RESPECTIVE
QUARTERLY REPORTS FOR THE MOST RECENT QUARTER FILED FOR FIRST VIRTUAL
COMMUNICATIONS ON FORM 10-Q AND FILED FOR CUSEEME NETWORKS ON FORM 10-QSB.
THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE ARE MADE AS OF
THE DATE HEREOF AND CUSEEME NETWORKS DOES NOT ASSUME ANY OBLIGATION TO UPDATE
THE REASONS WHY ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE PROJECTED
IN THE FORWARD-LOOKING STATEMENTS.