Exhibit 99.1
Contact:
Edgewater Technology, Inc. Citigate Sard Verbinnen
Clete T. Brewer, Chairman and CEO Kim Polan/Susan Burns
Terry C. Bellora, CFO 212-687-8080
501-973-6084
Edgewater Technology completes SALE
OF REMAINING NON-CORE BUSINESSES
Sale of ClinForce and CFRC Will Enable Exclusive Focus on eSolutions
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Fayetteville, Arkansas. - March 19, 2001 - Edgewater Technology, Inc.
(NASDAQ: EDGW, www.edgewater.com) today announced the completion of the sale of
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its wholly-owned subsidiaries, ClinForce, Inc. and CFRC, Inc. to Cross Country
TravCorps, Inc. for $31 million in cash. The sale was approved by stockholders
at a Special Meeting on March 14, 2001, with 96.3% of the 7.2 million votes cast
at the meeting supporting the transaction.
The sale of ClinForce and CFRC, which specialize in providing clinical
trial staffing services, is part of a strategic plan announced last year to
focus solely on Edgewater's eSolutions business, which provides e-business
solutions that assist enterprises in increasing market competitiveness,
improving productivity and reducing operational costs through the implementation
of Internet-centric technologies. As part of this focus, the Company completed
the disposition of all of its other non-eSolutions businesses during 2000.
"We are very pleased by our stockholders' support for the ClinForce/CFRC
sale. This transaction represents the final step in Edgewater's evolution to a
pure play e-business solutions provider," said Clete T. Brewer, Chairman and CEO
of Edgewater Technology. "Now that we have successfully completed the
divestiture of our remaining non-core divisions, we will focus all of our
efforts on growth prospects for our eSolutions business."
About Edgewater Technology
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Founded in 1992, Edgewater Technology is an award-winning e-business
consulting and systems integration firm that specializes in providing middle-
market companies with tailored solutions for today's Internet-centric
environment. Headquartered in Wakefield, Massachusetts, Edgewater has taken a
partnership approach with its clients, targeting strategic, mission-critical
applications. Edgewater Technology services its client base by leveraging a
combination of leading-edge technologies and proven reengineering techniques
provided by its network of national solutions centers strategically positioned
across the United States. For further information, visit our Web site at
www.edgewater.com or call 781-246-3343.
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This Press Release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including statements
made with respect to the amount of proceeds from the ClinForce sale transaction
and planned eSolutions unit positioning and focus initiatives. The forward
looking statements included in the Press Release relate to future events or our
future financial condition or performance. Words such as "plan," "will,"
"anticipate," "intend," "increasing," "pursue," "provide," "begin," "should,"
"would," "focus," "believe," "expect," "continue," and "plan," or the negative
thereof or variations thereon and similar expressions are intended to identify
forward-looking statements. These forward-looking statements inherently involve
certain risks and uncertainties, although they are based on our current plans or
assessments that are believed to be reasonable as of the date of this Press
Release. Factors that may cause actual results, goals, targets or objectives to
differ materially from those contemplated, projected, forecast, estimated,
anticipated, planned or budgeted in such forward-looking statements include,
among others, the following possibilities: (1) post-closing adjustments under
the ClinForce sale agreement which would have the effect of reducing the $31
million purchase price received at closing; (2) changes in industry trends, such
as decline in the demand for or supply of eSolutions services; (3) failure to
obtain new customers or retain significant existing customers; (4) loss of key
executives; (5) general economic and business conditions (whether foreign,
national, state or local) which include but are not limited to changes in
interest or currently exchange rates; (6) failure of the middle market and the
needs of middle market enterprises for e-business services to develop as
anticipated; (7) inability to recruit and retain professionals with the high
level of information technology skills and experience needed to provide our
services. Actual events or results may differ materially from those discussed,
contemplated, forecasted, estimated, anticipated, planned or implied in the
forward-looking statements as a result of the various factors described above
and those further set forth (A) under the headings "Summary -- Risks of Not
Approving the Transaction", "Summary -- Recent Events", "Edgewater Following
Completion of the Transaction", "Factors Affecting Edgewater Following the
Transaction" and "Forward looking Statements" in the Company's Proxy Statement
filed with the Securities and Exchange Commission on February 6, 2001 and (B)
under the heading "Business-Factors Affecting Finances, Business Prospects and
Stock Volatility" in the Company's Form 10-K filed with the Securities and
Exchange Commission on March 20, 2000.
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