Rare Medium Group, Inc. Adds 3 Companies
13 October 1999
Rare Medium Group, Inc. Adds 3 Companies: Edmund's, GoShip and Money Hunt to Its Venture Investment Portfolio
NEW YORK--Oct. 13, 1999--Rare Ventures, the investment arm of Rare Medium Group, Inc. , today announced it has made venture investments in three additional next-generation Internet companies. These investments, for which Rare will receive web development contracts as well as invest capital, include Edmund's, an independent provider of original editorial content and complete pricing and specification information for the automotive market; GoShip, a firm offering enhanced, cost effective shipping and fulfillment solutions for e-commerce sites; and MoneyHunt.com, an online companion to the TV program "Money Hunt," which is designed to entertain, educate and empower entrepreneurs as they seek capital for their start-up ideas.After securing $87 million in capital from the Apollo investment group, Rare now has the award-winning talent and the resources to enable, build and invest in the companies that will comprise the next generation of online businesses.
"Rare Ventures provides these companies with the financial, strategic and technological expertise needed to translate their business concepts into a reality. These three companies will benefit from our depth and breadth of resources, Internet expertise and industry relationships," said Glenn S. Meyers, chairman, president, and chief executive officer of Rare Medium Group, Inc. "We are confident that our investments and professional services contributions will speed the growth of these three firms and place them on the cutting edge within their respective industries," he added.
Rare's new venture capital arm, Rare Ventures, is responsible for making venture and incubator investments. With its deep knowledge of Internet business and access to proprietary deal flow through relationships with its clients, top-tier venture capital firms and Apollo, Rare Ventures has the ability to identify and add significant value to the next generation of blockbuster Internet companies. Rare Venture's three additional investments include:
| -- | Edmund's (www.edmunds.com): A well established brand in the automotive community since 1966, Edmund's is a preeminent source of original editorial content and data formatted and presented to educate new and pre-owned automobile owners. The site currently rates, compares, and reviews more than 10,000 vehicles and offers comprehensive rebate, incentive and financing information. Known for its distinctive editorial voice, Edmunds.com has a registered user base of 100,000. Rare co-invested with General Electric and Schroeders in this $10 million funding round, the first for Edmund's. |
| -- | GoShip: GoShip is the online arm of Commerce Dynamics, a firm that creates advanced tools for e-commerce wholesalers and retailers. By providing an alternative to generic "next day" or "3 to 5 day ground" shipping options, GoShip technology allows sites to offer their customers expanded delivery options and more precise point-to-point pricing for products purchased online. With GoShip, retailers will eliminate profitability distortions that may arise from mispriced or irregular shipping charges. Rare, Zone Ventures, and Sun America are co-investors in this initial $3 million funding round. |
| -- | Money Hunt, LLC (www.moneyhunt.com): MoneyHunt.com is a unique omnimedia enterprise with the mission of helping entrepreneurs transform their vision into reality. A website offering contacts, histories, and advice from America's leading entrepreneurs, Money Hunt is the companion site for the TV program "Money Hunt," a forum for America's next start-up stars. Money Hunt has recently established alliances with Businessweek magazine, Excite@Home, and Register.com. This investment adds to our efforts in the small business market and complements our investment in SmartOnline (www.smartonline.com), a leading provider of Web-hosted business productivity applications and information resources for small businesses and entrepreneurs. |
About Rare Medium Inc.
Rare Medium Inc., www.raremedium.com, a wholly-owned subsidiary of Rare Medium Group Inc. is an Internet solutions firm that helps clients develop E-commerce Internet strategies, improve business processes, develop marketing communications, branding strategies and interactive content using Internet-based technologies and solutions. Rare Medium develops Internet- and Web-based solutions primarily for large and medium-sized corporations, including Microsoft, The New York Times, Merrill Lynch, Intel, Epson, Hotel Reservation Network and Fox, among other leading companies.
About Rare Medium Group, Inc.
The mission of Rare Medium Group is to incubate paradigm-shifting ideas and build the next wave of blockbuster companies by leveraging its award-winning Internet development arm, Rare Medium Inc. Companies currently in development include:www.liveuniverse.com, a "Micro-Portal Enabler" with over 100,000 web sites in its network; www.iface.com, a "VoIP" company, "Voice Enabling" the Internet; www.changemusic.com, a company at the vanguard of the digital music revolution -- using the Internet to find, promote and distribute the best new music first; and, www.regards.com, an online greeting card and viral marketing company. Rare Medium Group Inc. employs approximately 400 Internet professionals and is headquartered in New York with additional offices throughout the United States, Canada and abroad.
Except for historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect Rare Medium Group Inc. , and its subsidiaries' business and prospects and cause actual results to differ materially from these forward-looking statements. Among the factors that could cause actual results to differ are Rare Medium's limited operating history; competition; low barriers to entry; reliance on strategic relationships; rapid technological changes; inability to complete transactions on favorable terms and those risks discussed in the company's filings with the SEC.