Newgen Results Announces 15 Percent of Customers are Signed Up for Carabunga.com
14 September 2000
Newgen Results Announces 15 Percent of Customers are Signed Up for Carabunga.com
Business Editors/High-Tech WritersSAN DIEGO–-(BUSINESS WIRE)--Sept. 14, 2000--Newgen Results Corporation , a leading provider of Customer Relationship Management (CRM) and e-CRM services to automotive dealerships, today announced that its wholly owned subsidiary, Carabunga.com, Inc., has received commitments from over 700 dealerships throughout the United States to subscribe to its services. This represents approximately 15 percent of Newgen's existing customer base. The company is also announcing a shift in its strategy to divest the company.
Carabunga.com was launched on June 26, 2000. The dealerships that have committed to use Carabunga.com will be able to take advantage of its Web-based business-to-business e-Promotion solutions that incorporate revolutionary one-to-one marketing techniques.
Gerald Benowitz, Chairman, President and CEO of Newgen commented, "We are extremely encouraged by the response Carabunga.com has received in the marketplace. Dealerships that are fully installed are using the Promotions feature, and generating substantial returns. We believe the demand and interest in Carabunga.com validates the one-to-one marketing concept for dealerships. We are also seeing good traction in the business. Given its future potential, we have decided not to divest the subsidiary at this time."
Carabunga.com was originally formed as a division of Newgen in October 1999 and as a subsidiary in February 2000. Under the original business plan, Newgen considered divesting up to 50 percent of its interest in the subsidiary to a third-party in the third quarter of 2000. However, as a result of the Company's decision to retain its entire interest in Carabunga.com, the operations of Carabunga.com will continue to be consolidated into Newgen's operations for the foreseeable future.
About Newgen Results Corporation
Newgen Results Corporation is a leading business-to-business application service provider specializing in customer-relationship management (CRM) and e-CRM for the automotive industry. The Company combines marketing and customer retention with an in-depth knowledge of service department operations to deliver highly targeted and customized solutions to the automotive community. Newgen currently supports over 5,000 auto dealerships nationwide and maintains relationships with leading automotive companies and dealers groups including Audi, BMW, Ford, General Motors, Infiniti, Jaguar, Kia, Mitsubishi, Nissan, Saab, Volkswagen, Volvo, plus AutoNation and CarMax Auto Superstores. On August 22, 2000, TeleTech Holdings, Inc. announced a definitive agreement to acquire Newgen Results Corporation for approximately $200 million in a stock-for-stock exchange accounted for as a pooling of interests. Following TeleTech's planned acquisition of Newgen, Newgen will operate as an independent entity within TeleTech Companies Group, led by Michael Foss, chief financial officer and president, TeleTech Companies Group. Jerry Benowitz and his management team will continue operating Newgen following the closing of the transaction. For more information, call 800-7NEWGEN or visit www.ngresults.com.
About Carabunga.com, Inc.
Carabunga.com, Inc. is a wholly owned subsidiary of Newgen Results Corporation that was established in February 2000. Carabunga.com develops Web-based business-to-business e-Promotion solutions that incorporate revolutionary one-to-one marketing techniques. With Carabunga.com, automotive dealers and manufacturers use the Internet to deliver targeted communications via e-mail and direct mail supported by teleservice follow up. Carabunga.com promotions are designed to help the automotive industry effectively use the Internet to increase consumer visits to a specified dealership for sales, parts, service and/or after-market product purchases. For more information, visit www.carabunga.com.
This news release contains certain forward-looking statements that involve risks and uncertainties, including statements about the future operation of Carabunga.com and the expected impact of Carabunga.com's operations on Newgen's operating results. Such statements are only predictions and the Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include but are not limited to risks related to market acceptance of the Company's products and services, the ability of the Company to satisfy its clients, uncertainties surrounding the closing of TeleTech's acquisition of Newgen as contemplated, the ability of the Company to enhance the Carabunga product line and expenses relating to those enhancements, and the emergence of competitive products and services. These factors and others are more fully discussed under the heading "Risk Factors" and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 1999 and its most recent quarterly report on Form 10-Q as filed with the Securities and Exchange Commission.