Xceed Aquires Catalyst Consulting; Leading Technology Change Management Consulting Group Strengthens Depth of Xceed's Solutions

Business Wire, Nov 11, 1999

NEW YORK--(BUSINESS WIRE)--Nov. 11, 1999--

Xceed Inc., (Nasdaq:XCED), interactive architect and solutions provider, announced today is has signed a contract to acquire Catalyst Consulting Services Inc., a leading Change Management Consulting firm based in Utah.

Catalyst Consulting Services specializes in all aspects of change management, using process definition and an enterprise architecture based approach to identify where transformation will deliver real benefit to operating ratios. Catalyst's staff has experience in mergers and acquisitions, strategic planning, process management, and large system implementation for clients such as SUPERVALU, First Security Bank, and American Stores Company (now part of Albertsons). Catalyst also has developed two products: a process model defining the Information Technology function in a company, and a retail data model. Both are expected to fit into Xceed's total solutions offerings.

"This continues our strategy of acquiring firms that are teams of experienced professionals with core capabilities that supplement and deepen our existing offerings and accelerates the company's ability to win and execute large complex projects." Said Scott Mednick, chairman and chief strategic officer of Xceed Inc.

Catalyst President Peter Wellman said, "As web solutions are integrated further into the existing corporate infrastructure, companies need to take a more holistic approach, focused on marrying the technical solutions with sound business processes to maximize the ROI. We are excited about becoming part of Xceed as it delivers its vision for the future."

All employees and management of Catalyst Consulting Services will be retained in the acquisition. In addition, Stan Whitcomb, who has been advising Catalyst, will be joining the Xceed team as a consultant. Mr. Whitcomb is the former Sr. Vice President, Information Technology, for American Stores Company, a $20 billion food and drug retailer. Terms of the transaction will not be disclosed.

About Xceed Inc.

Xceed (www.xceed.com) is an integrated marketing and communications company with interactive services at its core. Xceed, headquartered in New York, helps companies develop e-commerce and e-business solutions, improving people and business performance through communication tools, techniques, and technologies.

IMPORTANT NOTE:

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements involve risks and uncertainties, including timely development and upgrades to existing products, the impact of competitive products and pricing, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC). In particular, the Company's Form 10-K filed with the SEC in 1998 for the year ended August 31, 1998 should be referenced.