WASHINGTON--(BUSINESS WIRE)--Aug. 4, 1999--
CAIS Internet, Inc. (Nasdaq: CAIS - news), a leading service provider of
multi-point high speed Internet access solutions, announced today an
agreement to acquire (by merger) Atcom, Inc., a leading provider of
software solutions in multiple user Internet environments.
This merger would combine CAIS's OverVoice hardware technology
with Atcom's IPORT server software and kiosk products to create a cost
effective and robust solution to deliver high speed Internet access
solutions to hotels, apartment communities and public areas. CAIS will
issue approximately 2.51 million new shares to Atcom shareholders and
holders of Atcom warrants. CAIS will also convert Atcom employee stock
options into options to purchase a total of 0.87 million CAIS shares,
a portion of which are vested. Upon completion of the merger, Atcom
would become a wholly-owned subsidiary of CAIS.
With this transaction, CAIS will be able to significantly reduce
its cost of delivering the OverVoice total high speed Internet access
solution to its customers, and believes that it would be able to offer
the most sophisticated and simple-to-use feature sets and applications
to customers. The IPORT server functionality was developed by Atcom in
conjunction with Microsoft Consulting Services.
The IPORT server will provide OverVoice-equipped buildings with
Internet access connection functionality, payment processing including
interface with hotel management systems, advertising and e-commerce
enabling and variable data bit rate options. In addition to these
basic applications, IPORT has new functions that are leading the
industry to more complete ``office-outside-the-office'' features
including IP-based secure tunneling for corporate intranet access,
printing capability and booth and kiosk platforms for Internet access
in public areas. The integration of OverVoice with IPORT will provide
a consistent, simple interface for the end user.
``We believe that IPORT's feature set is far ahead of other
competing server software that is available and that Atcom is a clear
market leader in this area. Atcom has an excellent reputation in the
hotel and apartment community industry, and brings strong support from
Microsoft,'' said Ulysses G. Auger II, CEO, CAIS Internet. ``In addition
to reducing our dependence on third parties for a vital part of our
business, this merger reduces our cash costs in a typical apartment
community or hotel building installation by over 10%.''
``CAIS is clearly the best partner for us in high speed end-user
markets. Our entire management group is looking forward to being part
of the CAIS team,'' said Steve Nye, President of Atcom, Inc. ``With our
product lines combined, we represent a compelling end-to-end solution
Atcom's IPORT, a client/server application, runs on the Microsoft
BackOffice platform on the server side, and facilitates the end-user's
access to the Internet on one end, while integrating with the hotel
property management system or ISP billing platform on the other. An
IPORT server located on-site, or remotely in a distributed location
automatically configures a user's laptop to connect properly,
eliminating the need for the user to manually alter IP addresses. The
client application also features built-in support for virtual private
networking, an emerging remote access technology that uses the
Internet to provide a secure, low-cost connection to a private
For the traveler not equipped with a laptop computer, ATCOM also
provides superior software products and services for high-speed
Internet and information delivery in public places worldwide. These
include pay-per-use public Internet booths, kiosk Internet terminal
management software, and custom software kiosk programs designed to
meet specific customer needs.
The merger agreement is subject to certain conditions, including
the approval of Atcom's shareholders.
About OverVoice by CAIS Internet - the total solution
for high speed Internet access
Unlike other multi-point high Internet connectivity approaches,
CAIS Internet is a single source for high speed Internet access
services and a multi-point distribution platform. CAIS delivers the
high speed bandwidth off its nationwide backbone to the hotel or
building, and with OverVoice® by CAIS Internet patented technology,
distributes the high speed Internet access up to 10 Mbps to multiple
users. CAIS also has plans to rollout its 10 and 100 Mbps home
networking solutions with its single point of contact solution.
OverVoice technology is a cost-effective and sensible solution
for hotels and apartment communities wishing to makes properties high
speed Internet-ready. OverVoice technology is simply installed on top
of the property's existing telephone system to create an Ethernet
local area network like that found in many businesses. OverVoice
provides users an uninterrupted, dedicated high speed Internet
connection that can be shared simultaneously among multiple users.
Based in San Diego in 1995, ATCOM is a leading provider of public
high-speed Internet access software and systems for the 21st century.
The company's mission is to increase the installed base, customer use,
and public and industry awareness for public information terminals and
public Internet ports (IPORT(TM)). ATCOM's software and systems are
installed in airports, hotels, convention centers, and other public
areas from New York to San Diego and in Canada. Customers include US
West, GTE, TCG, Pacific Bell, Mail Boxes Etc. and Canada Payphone.
With ATCOM's flagship product, the IPORT Internet Access system, the
company has received honors including the 1997 and 1998 Microsoft
Retail Application Developer ``RAD'' award and the UCSD Connect 1998
Most Innovative Product Award.
The latest version of the IPORT Internet Access System, IPORT
3.0, features high-speed plug and play Internet access that requires
no reconfiguration as well as pay-per-use content through integrated
and flexible billing options.
About CAIS Internet
CAIS Internet, Inc. (Nasdaq: CAIS - news) is a leading Internet service
provider, delivering the latest in end-to-end high speed Internet
access solutions for consumers and businesses. CAIS operates three
different major business lines: high speed Internet access to
multi-user environments with its patented OverVoice® solution
(hotels and apartment communities); high speed Internet access using
HyperDSL lines to commercial and residential customers; and dedicated
Internet access to businesses and other Internet providers. All CAIS
Internet services are delivered with expert technical and customer
CAIS Internet operates a nationwide, clear-channel DS3/OC3 and
ATM Network. CAIS currently peers with public and private partners,
and at national exchange points MAE East, MAE East ATM, MAE West, and
Information on CAIS is available by calling 888-260-CAIS, or by
visiting the company's web site at www.cais.com.
Editor's Note: OverVoice and CAIS are registered trademarks of
This release contains statements relating to CAIS's future
expectations and business strategies or other ``forward-looking''
information. Those statements are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to
differ materially from those contemplated by the statements. Important
factors that may cause actual results to differ from projections
include, among others: changes in business conditions; changes in the
Internet services industry and the general economy; our limited
operating history; our ability to manage rapid growth; our ability to
enter into joint ventures and other strategic relationships with
companies on terms acceptable to us; and the impact of computer and
related problems that may arise from the Year 2000 problem on our
CAIS Internet is headquartered in Washington, DC, and is
reachable at 888.260.CAIS or on the Internet at www.cais.com.
CAIS Internet, Washington
Minda Markle, 202/715-1325
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