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Old 01-08-2001, 04:30 PM   #1
demae
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Join Date: Nov 2000
Posts: 1,291
Default Engage letter to publishers

I just got this.

Date: Mon, 8 Jan 2001 16:10:19 -0500
From: "Publishers@Engage" <publishers@Engage.com>
To: "Publishers@Engage" <publishers@Engage.com>
Subject: Letter from Tony Nuzzo, President and CEO of Engage Inc

Please read the attached letter from Tony Nuzzo, President and CEO of Engage
Inc.. Please expect to see a second communication from the publisher
consulting team within the next couple of days with more detail.

(The rest of this was a Microsoft Word attachment, even though it was just plain text. :P I have converted it.)

Last week, Engage announced a major streamlining of our company that we believe makes our organization more efficient and more responsive to your needs.

While this announcement includes a significant reduction in force 550 employees over the next several months it should not be equated with other Internet company cutbacks. Engage has a very different story: In the past 18 months, we have acquired seven separate companies. Predictably, this merging of organizations has produced duplication, overstaffing, and general inefficiencies. Thus, our reduction in force would be warranted under any circumstances. This is merely the final step in that consolidation.

Today, our integration work is complete. We are unveiling a leaner, simpler organization built around two distinct but complementary groups: worldwide software sales and service, run by Dean Wiltse; and worldwide media sales and service, run by Tom Rothfels. We have also consolidated our worldwide engineering force under Daniel Jaye, our co-founder and one of the pioneers of Internet marketing technology, and worldwide marketing under Betsy Zikakis.

We believe this new structure will greatly benefit our customers. By creating two groups devoted solely to sales and service, our people can focus on you and your needs. The steps we're taking today also yield an additional benefit: they will help ensure our long-term viability. While others in our industry face difficult times, we believe Engage will survive and prosper for the following reasons:

- Engage possesses something unique in the market: an interactive marketing software group with leading edge products (bolstered by our recent purchase of MediaBridge Technologies) and a media group with the Web's most extensive advertising network. We can offer marketers especially traditional companies trying to integrate across multiple channels a total approach to synchronized, interactive marketing.

- With our streamlined structure and reduced costs, Engage now has a clear path to cash-earnings profitability. The cutbacks announced last week will dramatically cut our burn rate, helping to preserve our cash on hand. With more than $100 million in cash, cash equivalents, and short-term securities, Engage believes it has the resources to weather the current market conditions.

- Engage is a priority for our parent company, CMGI, which, as of its last reporting period had more than one billion dollars in cash, cash equivalents, and short-term securities. In fact, CMGI committed to providing Engage with an additional $50 million this year, if necessary.

In short, we have the resources, the products, and, as of today, the organizational structure needed to thrive in today's market. We look forward to working with you in the coming months and years. If you have any questions about these changes or any other matters, Dean Wiltse, Tom Rothfels or I would be happy to talk with you at your earliest convenience.

Sincerely,

Tony Nuzzo
President and CEO
Engage, Inc.
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