PALO ALTO, Calif. (June 12, 2001) - ClickAction Inc. (NasdaqNM-CLAC)
announced today that it has entered into a definitive agreement
to sell the assets of its Elibrium division to a corporation owned
and controlled by certain members of the management team of the
Division, including Christina Willett, ClickAction's Senior Vice
President of the Elibrium division, and Sharon Chiu, ClickAction's
Chief Financial Officer, each of whom would resign from ClickAction
upon the closing of the transaction. The Elibrium division develops,
markets and manufactures small business applications..
The purchase agreement provides for a cash payment to ClickAction
of a minimum of $4.5 million, of which $2.0 million is scheduled
to be paid on closing, with the balance to be paid over the following
nine months. The purchase agreement also provides for further payments
to ClickAction should the new Company surpass mutually agreed to
financial goals. A portion of the total consideration represents
licensing fees for a private label version of ClickAction's email
marketing services and use of ClickAction's opt-in email database.
The closing of the transaction, which is subject to several closing
conditions, is scheduled to occur prior to the end of June 2001.
Gregory Slayton, ClickAction's President and CEO, commented that
"since the beginning of 1999, our strategic focus has been
on our E-Marketing Automation (EMA) business - and that is where
most of the revenue growth for the Company has come from over the
past two years. With the imminent release of our ClickAction EMA
Enterprise product, which has already been selected by BEA Systems
for bundling with BEA's major server products, it is imperative
for us to focus 100% on our core business. The sale of the Elibrium
division will allow us to do just that, while reducing our burn
rate and strengthening ClickAction's balance sheet."
ClickAction also announced today that it is commencing a search
for a permanent replacement for Sharon Chiu, its current CFO. ClickAction
will be scheduling a conference call for investors directly following
the close of the transaction to discuss the financial implications
of the spin-off and the forecast for the EMA business.
ClickActionY is a leading provider of e-marketing automation products
and services. ClickAction E-Marketing Automation (EMA) helps marketers
design, deploy and manage personalized email campaigns that maximize
the lifetime value of each customer. ClickAction EMA saves time,
generates revenues and reduces costs by providing highly scalable
outbound and inbound messaging, one-to-one publication, powerful
rules-based segmentation, real-time tracking and detailed reporting,
all integrated in a Web-based solution. 100% Java-based, ClickAction
EMA is built for easy deployment and integration with industry-leading
third party applications. ClickAction offers a hosted ASP solution,
ClickAction EMA, as well as an in-house Enterprise solution, ClickAction
EMA Enterprise for BEA. ClickAction products have a proven track
record of success in a variety of industries including retail, catalog,
brand and publishing.
In addition to ClickAction EMA, the company offers interactive,
campaign, acquisition and rich media services. ClickAction is a
member of TRUSTe, an independent, non-profit organization whose
mission is to build users' trust and confidence in the Internet.
For more information on ClickAction products and services, visit
www.clickaction.com or call 1.800.473.3141.
Forward Looking Statements
To the extent that any of the statements contained herein relating
to ClickAction are forward-looking, such statements are based on
current expectations that involve a number of uncertainties and
risks. Such uncertainties and risks include, but are not limited
to, the ability of ClickAction and the buyer to satisfy the closing
conditions set forth in the Elibrium asset purchase agreement referenced
above. Accordingly, there can be no assurance that the proposed
sale of the Elibrium division will occur in a timely manner, or