LOS ANGELES--(BUSINESS WIRE)--January 3, 2002 -- Vertical Computer Systems, Inc. (OTCBB: VCSY) announced today that it has acquired an option to purchase a 56 percent interest in iNetPurchasing, Inc. (iNet), a leader in Internet-based e-procurement services built specifically for the public sector.
The option agreement requires VCSY to pay iNet an option fee and to complete the purchase of the majority stake before April 1, 2002. The purchase price will consist of cash and Series C Preferred Stock. Existing joint ventures between iNet and VCSY (iNet Government Services LLC and Vertical-iNet LLC) will be dissolved.
The agreement seeks to build on the current strong working relationship between VCSY and iNet that has facilitated the testing and deployment of EmilyTM, initially through iNet’s vendor base throughout Texas, Maine, and Idaho, and eventually worldwide through VCSY’s Global Partners System.
iNetPurchasing Inc., (iNet) (http://www.inetpurchasing.com/) is a leading application service provider for Internet-based government procurement services. iNet's comprehensive e-procurement system is being contracted by state and local government agencies throughout the United States under the PublicBuy.net brand name. This service enables and empowers public sector clients with cost-saving purchasing capabilities that save time and money. It instantly puts government buyers and private sellers together for fast cost comparisons, quick sales decisions and speedy payment.
Vertical Computer Systems, Inc. (OTC.BB: VCSY) is a multinational provider of Web services, underpinning Web technologies, and administrative software services through VCSY’s Global Partners System, a worldwide distribution network. Web services involve the outsourcing of the daily information technology requirements of consumer, business and governmental entities via the Internet. Underpinning Web technologies are the foundation technologies used to build Web services, permitting the rapid development and deployment of all systems. Administrative software services are software products, such as human resources or procurement applications that provide the basic functionality of any operational entity.
For more information, visit the company's Web site at www.vcsy.com.
This release contains, in addition to historical information, forward-looking statements. These statements are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause such a difference include, but are not limited to, competition from other portals, the company's ability to integrate and market the Emily(TM) software, the market reception to VCSY'S new products, the potential benefits to customers, the conversion of sales leads into customers and the ramp-up of ASP users and other factors over which VCSY may have little or no control such as those described in the company's filings with the SEC.