National Geographic and Novica.com Announce Strategic Alliance; 112-Year-Old Organization Sees Synergy With Young Web Site

Business Wire, Dec 12, 2000

Business Editors

WASHINGTON, D.C. & LOS ANGELES--(BUSINESS WIRE)--Dec. 12, 2000

National Geographic and Novica.com, a leading e-commerce site specializing in handcrafted works of fine art and home decor sourced directly from artisans in developing economies, announced a strategic alliance that will build on the strength of the 112-year-old Society and enhance the young Web site.

Under the terms of the alliance, National Geographic has become a 19% shareholder in Novica.com, with the right to increase its interest to nearly 30%. National Geographic will provide Novica with relevant content from its vast editorial resources, cross-marketing support, and access to its commerce channels (retail, catalog, and online). Rick Allen, president and CEO of National Geographic Ventures, will serve on Novica's board of directors.

"For more than a century, National Geographic has enabled hundreds of millions of people to travel to the far corners of the globe -- at least in their armchairs. Novica makes it easy for individuals to experience another culture through its art," said Rick Allen. "Both organizations help make the world a smaller place by easing interactions across the divides of geography and experience. And by improving financial stability for artisans who have long struggled to maintain their traditional crafts and cultures, we are helping to keep our shrinking planet vibrantly diverse."

"Around the world, National Geographic is such a powerful name, and their participation in Novica marks a pivotal milestone in our initiative to preserve culture and empower artists worldwide," said Armenia de Oliveira, Novica.com's Co-Founder and President of International Operations and former United Nations Human Rights Officer. "With this alliance, we will collaborate with National Geographic to connect world artisans with consumers interested in learning about their lives, traditions, and regions."

Novica Chairman Michael Burns, an Internet and entertainment business veteran, added, "This alliance is extremely meaningful for Novica at this stage of its growth. The relationship offers Novica powerful distribution and promotional networks as well as an affiliation with one of the most respected brands in the world."

Founded in 1998, Novica offers more than 8,500 unique arts and crafts on a Web site that explores the world's diverse cultures and immerses visitors in the stories of its featured master artisans. Novica has distinguished itself by merging a strong business model with a humanitarian mission and a streamlined distribution network that eliminates multiple middlemen and their markups. Through this unique strategy, artisans are able to make considerably more than ever before, and customers are able to purchase one-of-a-kind treasures at substantially reduced prices. In addition to fostering economic development, Novica actively promotes its artisans, securing international recognition for their talents.

"For me, as a member of the Novica family of artists, this alliance with National Geographic reaches beyond any dreams or expectations I could have imagined," said Leoncio Tinoco, one of 1,700 artisans featured on the Novica.com Web site. Speaking from his home in the Andes of Peru, the master weaver added, "One year ago, I struggled to sell my tapestries -- even tapestries that had won significant awards here at home. Now, with Novica, I can earn my living as an artist and feel honored to represent my Incan heritage to the world."

Novica has grown rapidly since its founding. It currently employs over 200 staff members internationally and operates 12 sourcing, quality assurance, and fulfillment hubs throughout Latin America, Africa, and Asia.

About Novica.com

Novica, a leading e-commerce site specializing in unique, handcrafted goods, unites site visitors with more than 1,700 extraordinary artisans worldwide. Visitors read about the artisans' lives, explore their cultures, and select from more than 8,500 handcrafted works. Novica's 'Golden Rule' rests at the heart of its operating principles: Artisans make more; customers pay less. Headquartered in Los Angeles with offices in El Salvador, Brazil, Ghana, India, Indonesia, Mexico, Morocco, Peru, Thailand, Venezuela, and Zimbabwe, Novica is continuously opening new offices worldwide.

Novica is funded by Scripps Ventures; Rust Capital LLC; Chris Blackwell, founder of Island Records; Michael Burns; Theresa Pan; Estella Warren; and other individual investors.

About National Geographic

The National Geographic Society is the world's largest nonprofit scientific and educational organization. The 112-year-old Society reflects the world through magazines, books, maps, television and interactive media. National Geographic magazine, the official journal of the Society, has a circulation of about 10 million and is read in every country in the world. The Society has funded more than 6,500 scientific research projects and supports an education program combating geographic illiteracy.

National Geographic Ventures is the wholly owned taxable subsidiary of the National Geographic Society. National Geographic Ventures supports the Society's commitment to exploration, conservation, and education through National Geographic Television, the National Geographic Channel, nationalgeographic.com, National Geographic Maps, licensing, merchandising, Travel Expeditions, and retail. For more on National Geographic log on to www.nationalgeographic.com.