CMGI Cmgi (MM)

CMGI�, Inc. (NASDAQ: CMGI), a global leader in supply chain management services, today announced it has completed its previously announced acquisition of Open Channel Solutions, Inc. (OCS), a leading global provider of entitlement and e-business management solutions. The acquisition creates a complementary offering between OCS� digital content distribution capabilities and the supply chain management services offered by CMGI�s subsidiary ModusLink, to create a complete �digital to physical� supply chain management solution. Under the terms of the agreement, announced February 20, 2008, CMGI paid a net purchase price of approximately $11.0 million in the all-cash transaction, which is valued at $24.5 million, due to an existing minority interest in OCS and the repayment of debt it currently holds. As previously announced, CMGI expects the transaction to be neutral to earnings per share in fiscal 2008 and accretive thereafter. OCS will maintain its headquarters in Dedham, Mass. and operate as a wholly owned subsidiary of CMGI. Ed Rose, president and chief executive officer of OCS, and the entire management team will remain with the company. OCS employs more than 80 people worldwide, with offices in Japan, the Netherlands, Australia and Utah. �We have seen a consistent need for support of digital content distribution, in addition to physical distribution of products,� said Joseph C. Lawler, chairman, president and chief executive officer of CMGI. �By acquiring OCS, we can now offer clients digital delivery support of their electronic products such as software or digital media, in addition to the capabilities provided by ModusLink, to create a single point of contact for all of our clients� distribution needs, both physical and electronic.� About CMGI CMGI, Inc. (NASDAQ: CMGI), through its subsidiaries ModusLink and Open Channel Solutions, provides industry-leading global supply chain management services and solutions that help businesses market, sell and distribute their products around the world. In addition, CMGI�s venture capital business, @Ventures, invests in a variety of technology ventures. For additional information, visit www.cmgi.com. About ModusLink ModusLink Corporation is a leading provider of global, end-to-end supply chain management solutions. The company provides technology clients in the software, computing, consumer electronics, storage and communications markets with customized supply chain solutions that improve time-to-market, productivity and customer satisfaction while reducing risk and cost. ModusLink's services include consulting and planning, sourcing and supply base management, manufacturing and product configuration, fulfillment, logistics management, e-commerce and the complete range of aftermarket services. ModusLink has more than 30 facilities in 13 countries, creating the largest global footprint in the industry. With headquarters in Waltham, Mass. the company is a subsidiary of CMGI, Inc. (NASDAQ: CMGI). For additional information, visit www.moduslink.com. About Open Channel Solutions Open Channel Solutions (OCS) is a leading global provider of entitlement and e-business management solutions, including its flagship Poetic� product. The company�s self-service offerings help organizations increase software renewal revenues; extend their reach and manage sales in the growing SMB market through multi-tiered channels; effectively distribute electronic software and content; and eliminate costly, inefficient e-business IT processes. OCS is headquartered in Dedham, Mass., and has offices in Utah,�the Netherlands, Japan and Australia. For more information, visit www.ocs.com. This release contains forward-looking statements, which address a variety of subjects including, for example, the expected benefits of the transaction, the expected financial contribution of OCS and the expansion of capabilities expected to occur as a result of the transaction. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: There can be no assurance that projected financial results will be attained; There can be no assurance that other suitable acquisitions will be identified or available on terms acceptable to CMGI; CMGI's success depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of its solutions and services; CMGI may not be able to expand its operations in accordance with its business strategy; CMGI may experience difficulties integrating technologies, operations and personnel in accordance with its business strategy; CMGI derives a significant portion of its revenue from a small number of customers and the loss of any of those customers would significantly damage its financial condition and results of operations; increased competition and technological changes in the markets in which CMGI competes; and risks associated with international operations. ModusLink represents a significant percentage of CMGI's operations and the occurrence of any of the foregoing factors with respect to ModusLink�s business may have an adverse effect on CMGI�s results of operations and financial results. For a detailed discussion of cautionary statements that may affect CMGI's future results of operations and financial results, please refer to CMGI's filings with the Securities and Exchange Commission, including CMGI's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements represent management's current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us. CMGI is a registered trademark of CMGI, Inc. and ModusLink is a registered trademark of ModusLink Corporation. All other company names and products are trademarks or registered trademarks of their respective companies.