Exhibit 99.2
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MicroStrategy Strengthens Management Team
MicroStrategy Names New Chief Financial Officer, Appoints New
Vice President of Corporate Development, and Names Acting
Director of Internal Audit and Financial Controls
VIENNA, Va., August 1, 2000 - MicroStrategy(R) Incorporated (NASDAQ:
MSTR), a leading worldwide provider of Intelligent E-Business(TM)
software, today announced that it has strengthened its management team.
Effective immediately, Eric Brown, an executive with over ten years
experience in senior financial management roles at companies including
Electronic Arts, DataSage and Haagen-Dazs, will assume the role of Vice
President, Finance and Chief Financial Officer for MicroStrategy. Mark
Lynch, MicroStrategy's Chief Financial Officer since 1997, will assume
the new position of Vice President and Chief Administrative Officer. Eric
Driscoll, a senior executive in MicroStrategy's consulting division, has
assumed the position of Vice President, Corporate Development.
In addition, MicroStrategy has retained the services of Timothy C.
Clayton, an executive with 25 years of experience in accounting and
finance at companies including Building One Services and Price
Waterhouse, to assist in the enhancement of its internal control systems
and to lead the development of an Internal Audit function. Mr. Clayton
will serve as acting Director of Internal Audit and Financial Controls.
"We are excited about the evolution of our management team, as it will
enable us to manage our corporate development, exploit opportunities in
the e-business market, and execute on our priorities," said Michael J
Saylor, president and CEO of MicroStrategy Incorporated. "We are
working to implement financial controls and metrics designed to
emphasize profitability and accountability across the entire
organization, and to tie employee performance and compensation to these
metrics. We believe that we have put in place the right team to attain
this goal and become a world-class e-business company."
The following management changes are effective immediately:
Eric Brown, currently the Chief Financial Officer and Chief
Administrative Officer of Strategy.com, will assume the position of
Vice President, Finance and Chief Financial Officer for
MicroStrategy. Mr. Brown joined Strategy.com in February 2000
after serving as a vice president and division chief operating officer
at Electronic Arts (EA), the world's largest interactive
entertainment software company with revenues of $1.2 billion in
fiscal year 1999. Mr. Brown was involved in major external
development projects, new product funding, league licenses, and
studio acquisitions at EA's headquarters. Prior to working at EA,
Mr. Brown served as Chief Financial Officer and Vice President of
Business Development at DataSage, Inc., an Internet target
marketing and content personalization software company that he
co-founded. Mr. Brown also worked at Pillsbury where he held the
position of Finance Director for Haagen-Dazs France/Benelux and
Pillsbury France. Prior to that assignment, he opened the
Haagen-Dazs Far East regional office in Hong Kong, and
established joint ventures in Taiwan and South Korea. Mr. Brown
holds an MBA from the MIT Sloan School of Management and an
undergraduate degree from the Massachusetts Institute of
Technology. Mr. Brown will report to CEO Michael Saylor.
Mark Lynch, MicroStrategy's Chief Financial Officer, will
assume the new position of Vice President and Chief
Administrative Officer. Mr. Lynch joined the company in
September 1997 and helped lead the company's successful IPO in
June 1998, its secondary offering in February 1999, and its
private equity financing in June 2000. In his new position, Mr.
Lynch will be focused upon improving the overall performance of
the company's various global business units. In addition, Mr.
Lynch will head up the company's Administration, Information
Systems, and Real Estate functions. Prior to joining
MicroStrategy, Mr. Lynch served as CFO for WorldCorp and
World Airways. Prior to World Airways, Mr. Lynch served as the
Vice President of Finance for InteliData. Mr. Lynch holds an
MBA from George Washington University and a B.S. in
Accounting from Penn State University. Mr. Lynch will report to
CEO Michael Saylor.
Timothy C. Clayton has been retained as a consultant to serve as
acting Director of Internal Audit and Financial Controls. Mr.
Clayton will assist the company in the enhancement of its internal
controls and procedures in the areas of revenue recognition and
financial reporting systems. Mr. Clayton will also lead the
company's development of an Internal Audit function. Mr.
Clayton has 25 years of experience in accounting and finance
serving most recently as Executive Vice President and Chief
Financial Officer of Building One Services. Previously Mr.
Clayton worked with Price Waterhouse for 21 years, with 9 years
experience as an audit partner where his clients included a number
of software industry companies and other rapidly growing
businesses. Mr. Clayton's specific areas of expertise include the
establishment of financial reporting systems, budgeting and
performance measurement processes, internal accounting
controls, software revenue recognition and contract accounting.
Mr. Clayton will work closely with Eric Brown and other
members of the senior management team and report to Michael
Saylor and the Audit Committee of the Board of Directors. Mr.
Clayton is currently a principal at Emerging Capital LLC, a
management consulting and financial advisory firm, and will work
for MicroStrategy under a retainer.
Eric Driscoll, who most recently served as the company's Vice
President of Americas Consulting, has assumed the position of
Vice President, Corporate Development. In this role he is
responsible for Recruiting, Human Resources and Internal
Education for all MicroStrategy business units and subsidiaries
worldwide. Mr. Driscoll joined MicroStrategy in 1997 as the
consulting manager for the East Region. In 1998 he was promoted
to Director, North American Consulting. In this role he
supervised turnaround operations in the Central and West
Regions. In June 1999 Mr. Driscoll was promoted to Vice
President, Americas Consulting, and assumed responsibility for
Indirect and Direct Consulting operations within North America.
Mr. Driscoll has introduced a variety of process improvements in
the areas of business development, practice operations and
service delivery methodology to MicroStrategy. Prior to
MicroStrategy, Mr. Driscoll served in consulting roles at both
Sybase and Andersen Consulting. Mr. Driscoll graduated from
Johns Hopkins University with a Bachelor of Science in
Electrical Engineering. Mr. Driscoll will report to Michael
Saylor.
Intelligent E-Business, MicroStrategy, MicroStrategy 7, Personal
Intelligence Network, Strategy.com are either trademarks or registered
trademarks of MicroStrategy Incorporated in the United States and certain
other countries. Any product and company names mentioned herein may be
the trademarks of their respective owners.
This press release may include statements that may constitute "forward-
looking statements," including its estimates of future business prospects
or financial results and statements containing the words "believe,"
"estimate," "project," "expect" or similar expressions. Forward-looking
statements inherently involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking statements.
Factors that could contribute to such differences include: the Company's
ability to secure financing for its current operations and long-term
plans on acceptable terms; the ability of the Company to implement and
achieve widespread customer acceptance of its Strategy.com network on a
timely basis; adverse reaction by the Company's employees, investors,
customers, vendors and lenders to the restatement of the Company's 1999
results or its future prospects; the Company's ability to recognize
deferred revenue through delivery of products or satisfactory performance
of services; continued acceptance of the Company's products in the
marketplace; the timing of significant orders; delays in the Company's
ability to develop or ship new products; market acceptance of new
products; competitive factors; general economic conditions; currency
fluctuations and other risks detailed in the Company's registration
statements and periodic reports filed with the Securities and Exchange
Commission. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or
changes after the date of this release.
Contact:
Michael Quint
MicroStrategy
703-848-8600