Exhibit 99.1
For immediate release
For more information:
Joni Hanson
InfoSpace
(425) 602-0600 x 552 or
jhanson@infospace.com
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Mary Beth Williams
Text 100
(206) 381-3791 or
maryw@text100.com
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InfoSpace Launches New Mobile Commerce Service That
Turns Mobile Devices Into True Transaction Devices
InfoSpace agrees to acquire IQorder.com to facilitate and accelerate the growth
of mobile commerce by allowing consumers to enter in a model number, UPC code,
part number, barcode or ISBN or to even scan in a UPC code to accurately locate
a product, compare prices and make an instant purchase with a single click
REDMOND, WA - April 25, 2000-, InfoSpace, Inc. (NASDAQ: INSP), a leading
worldwide provider of infrastructure services for wireless carriers, merchants
and Web sites, today announced that it will offer wireless carriers the ability
for wireless shoppers or the traditional shopper to enter anything that is known
about an item- such as model number, part number, barcode, ISBN, product name or
even scan in a UPC code - to uniquely and most accurately locate a product,
comparison shop and purchase "when they want, where they want and how they want"
with a single click via cellular phones, land-line telephones, CE or palm
devices, two-way pagers and standard browsers.
InfoSpace already works with traditional brick and mortar stores to incorporate
their product and pricing database and real-time inventory information. With
this enhanced functionality, InfoSpace will be able to locate the desired
product from within a proprietary 100+ million database in addition to virtually
any Web site, then "shops" for price and availability from its network of
thousands of e-tailers, clicks & mortar, and bricks & mortar merchant partners.
The consumer then has the freedom to select the
merchant he/she wants to buy from, and with a single click make an instant
purchase online or visit the nearest store.
This will also enable shoppers to act immediately when they see a product in a
physical store by using their device to get more information, compare prices,
buy the item or save the product information for future reference. It's the
latest example of how information and commerce is converging.
Consumers will be able to pull product information--reviews, prices, and
purchasing options--using mobile devices while they are strolling the aisles of
their local brick and mortar stores. One shopper may find the same laptop
computer for $500 less on the Internet, decide it's worth waiting for the
delivery and order it online, right there from the sales floor, with a single
click. This will allow everyone to be able to use their mobile devices as a
point-of-sale device to research, order, and buy. The combination of this
technology with InfoSpace's promotions technology will also enable users to
electronically receive contextual promotions that can be used online or offline
in physical stores.
"Sixty-five percent of all Internet consumers abandon their Internet shopping
carts due to frustrations with the cumbersome task of filling out forms and
shipping info," said Naveen Jain, chairman, InfoSpace. "To make mobile commerce
work and really make it successful, it is imperative that these services are
easy to use and beneficial to do business on a mobile device. Being able to find
specific products using standards-based codes and make a purchase with a single
click from any device, is part of the platform that will propel the growth and
usage in this area."
InfoSpace has established relationships with more than 24 wireless carriers
worldwide. In addition, InfoSpace offers millions of local merchants a
comprehensive and integrated platform of merchant services that are used by all
five regional bell operating companies- BellSouth, SBC, BellAtlantic, USWest and
GTE, leading merchant banks including American Express and Bank of America and
other local media networks. The powerful
combination of bringing merchants to mobile users will also help to facilitate
and accelerate the growth of mobile commerce.
"The opportunity could be enormous," said Mark Plakias, an analyst at the Kelsey
Group. He recently estimated that local advertising via wireless media should
grow to $6.8 billion by 2005 and that information from wireless directories and
shopping services could influence 1 billion store purchases in 5 years.
The new mobile commerce service will also offer wish lists, pricing alerts and
price history capabilities along with, "friendly reminders," that keep track of
events such as birthdays and anniversaries and anything the user enters,
including medication times, appointments, etc. The user controls how much
information they receive.
"There is a rapidly shifting market in 2000 for business. We think that wireless
carriers, merchants and enterprises that don't invest in these types of
applications are going to find themselves made obsolete," continued Jain.
Under the terms of the acquisition, which will be accounted for as a purchase,
InfoSpace will acquire all of IQorder.com's outstanding securities in exchange
for $58 million in InfoSpace Common Stock subject to adjustment based on the
average closing price of InfoSpace Common Stock on the Nasdaq National Market
for the five trading days preceding the closing. The acquisition is expected to
be completed in Q2 2000, and is subject to customary conditions, including the
receipt of regulatory approval and IQorder.com shareholder approval.
About InfoSpace, Inc.
InfoSpace is a leading global Internet information infrastructure services
company. InfoSpace provides commerce, information and communication
infrastructure services to wireless devices, merchants and Web sites. The
Company's affiliates include a network of wireless and other non-PC devices
including PCs, cellular phones, pagers, screen telephones, television set-top
boxes, online kiosks, and personal digital assistants. These include
relationships with AirTouch, Vodafone, GTE, Intel, Ericsson, Nokia, Mitsui and
Acer America. InfoSpace's affiliate network also consists of more 2,500 Web
sites that include AOL, Microsoft, Disney/InfoSeek's GO Network, NBC's Snap,
Lycos, Go2Net Inc., DoubleClick, Dow Jones (The Wall Street Journal Interactive
Edition) and ABC LocalNet, among others.
This release contains forward-looking statements relating to the development of
the Company's products and services and future operating results, including
statements regarding the Company's planned acquisition and integration of
IQorder.com, which are subject to certain risks and uncertainties that could
cause actual results to differ materially from those projected. The words
"believe," "expect," "intend," "anticipate," variations of such words, and
similar expressions identify forward-looking statements, but their absence does
not mean that the statement is not forward-looking. These statements are not
guarantees of future performance and are subject to certain risks, uncertainties
and assumptions that are difficult to predict. Factors that could affect the
Company's actual results include the progress and costs of the development of
our products and services and the timing of market acceptance of those products
and services. A more detailed description of certain factors that could affect
actual results include, but are not limited to, those discussed in InfoSpace's
Annual Report on Form 10-K, in the section entitled "Factors Affecting
InfoSpace's Operating Results, Business Prospects and Market Price of Stock."
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release. InfoSpace
undertakes no obligation to update publicly any forward-looking statements to
reflect new information, events or circumstances after the date of this release
or to reflect the occurrence of unanticipated events.