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[WAREFORCE.COM, INC. LOGO]
FOR IMMEDIATE RELEASE
CONTACT: Marcia Mazria Phil Huss
- -------- Wareforce.com, Inc. Phoenix Alliance, Inc.
(310) 725-5523 (970) 259-7241
mmazria@wareforce.com phoenixalliance@frontier.net
WAREFORCE.COM ACQUIRES ONLINE CONNECTING POINT
TRANSACTION SECURES PROPRIETARY E-BUSINESS PROCUREMENT SOLUTION, BOLSTERS
TECHNICAL SERVICES, ADDS ANTICIPATED REVENUE OF $60 MILLION
LOS ANGELES--June 12, 2000--Wareforce.com, Inc. (OTCBB:WFRC), a comprehensive
Information Technology (IT) solutions provider, announced today that it has
acquired OnLine Connecting Point in a transaction consisting of cash and a note
payable on an earn-out basis. No new stock was issued in this transaction.
OnLine Connecting Point (OnLine) is a leading California-based, enterprise
technology management firm with a strong market presence in San Diego, Orange
County, Los Angeles and Bakersfield. OnLine customers include prominent Fortune
500, entertainment and media companies, as well as national health and service
organizations.
Featuring a strong blend of technical services, product sales, and an
outstanding suite of e-Business tools delivering supply chain and project
management capability, OnLine generated revenue in excess of $60 million in
fiscal 1999.
"We are very excited about this business combination," stated Orie Rechtman,
Wareforce.com CEO. "With an emphasis on high margin technical services, a
complementary e-Business strategy, and a geographical territory with minimal
customer overlap, OnLine is a very strong fit. We share many goals and values
with the OnLine team and expect to retain over one hundred key OnLine personnel,
the majority of which are in technical sales and service."
OnLine has developed OpsTRACK(C), a proprietary Internet-based procurement
system which integrates the functions of online pricing and availability with
complete order and budget tracking into one application, enabling electronic
paperless purchasing. OpsTRACK(C) is an end-to-end procurement solution that
allows customers to seamlessly search, compare, order, and pay for technology
products in a user-friendly online environment. It also includes tools for
budgeting, workflow planning and project management.
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"The acquisition of OnLine will dramatically accelerate our e-Business
strategy," stated Jim Illson, President of Wareforce.com. "We can now integrate
our existing e-Business solutions and $2 billion virtual IT warehouse with
OpsTRACK(C), and offer our customers an industry-leading solution. In addition
to a wide range of Professional and Response Services and our recent acquisition
of e-Business integrator, WesTech, we have augmented our capabilities to deliver
end-to-end e-Business solutions to our customers. With a combined, annualized
pro forma revenue greater than $200 million, and increased emphasis on
e-Business and Professional Services, we are now positioned for significant
growth and expansion in these key areas."
Online procurement of IT products is recognized as larger than any other
industry segment on the Internet today, and online business-to-business (B2B)
sales overall are forecast to show blistering growth in the coming years.
According to the GartnerGroup, B2B e-Business worldwide is poised to expand from
$403 billion in 2000 to $7.29 trillion by 2004.
ABOUT WAREFORCE.COM
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Wareforce.com, with headquarters in El Segundo, California, is a leading
provider of IT systems, technical services and e-Business solutions to
government organizations, educational institutions, and small, mid-size and
Fortune 1000 companies.
Wareforce.com has integrated its $2 billion virtual warehouse featuring 140,000
computer-related products with the Commerce One MarketSite(TM) Global Trading
Portal, the U.S. portal for exchanging goods and services among businesses
worldwide. This allows customers immediate access to one of the most
comprehensive online inventories of IT products available today. Wareforce.com
is committed to provide B2B e-Business solutions using open industry standards.
By adopting XML as the standard interface with internal ERP systems,
Wareforce.com provides a complete, seamless integration with leading online
procurement technologies. Wareforce.com is located on the World Wide Web at
www.wareforce.com.
This news release contains 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. Such statements are subject to
risks and uncertainties that could cause actual results to vary materially from
those projected in the forward-looking statements. The Company may experience
significant fluctuations in future operating results due to a number of
economic, competitive and other factors, including, among other things, the size
and timing of customer contracts, new or increased competition, changes in
market demand, and seasonality of purchases of the Company's products and
services. These factors and others could cause operating results to vary
significantly from those in prior periods, and those projected in
forward-looking statements. Additional information with respect to these and
other factors, which could materially affect the Company and its operations, as
well as additional information concerning the transaction described herein, are
included on certain forms the Company files with the Securities and Exchange
Commission.
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