EXHIBIT 99.1
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PRESS RELEASE
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FOR IMMEDIATE RELEASE
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For more information contact: Chris Bunn
Renee Reyes Investor Relations
Cobalt Networks Cobalt Networks
650-623-2625 650-623-2500
renee@cobalt.com cbunn@cobalt.com
Cobalt Networks To Acquire Chili!Soft
Mountain View, CA, March 23, 2000 - Cobalt Networks, Inc. (NASDAQ: COBT), a
leading provider of server appliances, today announced that it has signed a
definitive agreement to acquire privately-held Chili!Soft, Inc., provider of
software solutions for platform-independent Active Server Pages (ASP), the
Microsoft-led standard for the rapid development and deployment of interactive
Web applications.
Cobalt Networks will acquire 100 percent of the outstanding stock and assume all
stock options of Chili!Soft in exchange for 1.15 million shares of Cobalt common
stock. Cobalt expects to account for the transaction as a purchase. Cobalt
expects the deal to close in the next quarter, subject to customary closing
conditions.
"The hosting market is driven by Web-based applications. By integrating
Chili!Soft Active Server Pages technology to Cobalt's server appliances, we
believe we will bridge the gap between Microsoft development tools and the Linux
operating system," said Stephen DeWitt, president and CEO, Cobalt Networks, Inc.
"Microsoft Web tools are the most commonly used tools in the developer
community. This acquisition enables Cobalt to share in the largest pool of
qualified developers and significantly expand the number of solutions available
for service providers using the Cobalt platform."
Chili!Soft enables developers to use Microsoft tools to create dynamic Web
pages. Unlike a static Web page that provides the same information each time
that it is requested, dynamic Web pages can contain different information each
time by utilizing specific data from a database before delivering the page to
the user. This flexibility enables a broad variety of Web-based applications
that can be developed, such as applications that include personalized Web pages
or real-time data.
Chili!Soft ASP, which won a recent award at LinuxWorld as "Best of Show for
intranet/extranet product," is supported by industry leading Web development
tools such as Microsoft Visual InterDev(TM) and FrontPage(TM), Macromedia
Drumbeat(TM), NetObjects ScriptBuilder(TM) and Allaire HomeSite(TM). Chili!Soft
ASP is compatible with databases from Oracle(R), Informix(R), Sybase, IBM,
MySQL, and Computer Associates. Chili!Soft technology enables ASP to be built
and deployed on leading Web servers such as Apache and Netscape and operating
systems including Linux, UNIX, and Windows NT.
"We are very excited to join the Cobalt team and get down to the business of
enabling powerful cross-platform applications for the hosting industry," said
Bryan Grummon, president and CEO, Chili!Soft, Inc. "Both companies share a
parallel vision and sense of purpose that, in combination, will create winning
solutions for service providers worldwide."
About Cobalt Networks, Inc.
Cobalt Networks, Inc. (NASDAQ: COBT) is a leading developer of server appliances
that enable organizations to establish an online presence easily, cost
effectively, and reliably. Cobalt's product lines - the Cobalt Qube, Cobalt
Cache, Cobalt RaQ, and Cobalt NASRaQ - are used as Internet and Web hosting
server appliances at businesses, Internet Service Providers, and educational
institutions. Cobalt's solutions are delivered through a global network of
distributors, value-added resellers and ISPs. Founded in 1996, Cobalt Networks,
Inc. (http://www.cobalt.com) is located in Mountain View, California-the heart
of Silicon Valley - with international offices in Germany, Japan, the United
Kingdom, France, and the Netherlands.
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Cobalt Networks, Cobalt Qube and Cobalt RaQ are trademarks of Cobalt Networks,
Inc. All other product names are trademarks of their respective owners.
Certain statements in this press release include forward-looking statements that
are subject to risks and uncertainties that could cause results to be materially
different from expectations. Such risks and uncertainties include, but are not
limited to, risks associated with industry trends related to dedicated Web and
application hosting and Web and application developer markets. Investors are
advised to read Cobalt's Registration Statement on Form S-1 and its other
filings with the Securities and Exchange Commission for a further discussion of
such risks and uncertainties as well as the other uncertainties and risks Cobalt
faces.