Knowledge Universe to Make Additional $10 Million Investment in Nextera Enterprises

Business Wire, Nov 30, 2000

Business Editors

LEXINGTON, Mass.--(BUSINESS WIRE)--Nov. 30, 2000

Nextera Enterprises, Inc. (Nasdaq:NXRA) today announced that Knowledge Universe, through an affiliate, has committed to increase its investment in Nextera by $10 million over the next three months.

At present, an affiliate of Knowledge Universe holds approximately 36% of Nextera's 35.1 million outstanding shares of Class A and Class B common stock.

Knowledge Universe's subordinated debt investment will be made in three increments: $2.5 million occurring on or before December 15, 2000; $2.5 million on or before January 15, 2001; and $5 million on or before February 15, 2001. Additional details will be disclosed shortly.

David M. Schneider, who joined Nextera as president and chief executive officer on October 25, said, "We are pleased with the confidence Knowledge Universe has demonstrated in the fundamentals of our Company and our prospects for the future. The cost-cutting measures we announced in October have been fully implemented, and we remain on track to achieve the $15 million in annualized savings resulting from those actions."

"While the current period will remain challenging, Nextera is uniquely positioned to take advantage of a global and rapidly growing demand for consulting companies that possess a strong knowledge of complex economic, strategic transformation, human capital management and technology issues," said Schneider. "We are also in the process of implementing a reward program for our best performing professionals and we continue to attract and retain some of the finest people in the industry. I am as confident as ever that we will continue to enhance the long and successful track record of our unique businesses, some of which have been in operation for over 40 years, and that our talented pool of professionals will continue to serve and benefit our company, our clients and our shareholders."

Continued Schneider: "I am particularly heartened by the positive response I've gotten from the employees and clients of Nextera. Having met with literally hundreds of people over the past several weeks, it is clear that they are as excited as I am about Nextera's potential. I believe that as we continue to offer more integrated end-to-end services that leverage our leadership in customer relationship management and human capital issues and our relationships with top executives, we can capture the many opportunities that exist for Nextera."

Update on Capital Structure

As previously announced, Nextera recently entered into discussions with Knowledge Universe, which through an affiliate, holds approximately $31.5 million of Nextera's subordinated debt, concerning the conversion of all that debt into an equity instrument. The conversion of the subordinated debt is expected to allow Nextera to meet the minimum net tangible assets requirement in order to maintain the Company's listing on the NASDAQ National Market System. The Company has presented the proposed transaction to NASDAQ and will disclose the terms subject to their approval by an independent committee of the Board of Directors. Nextera indicated on October 26, 2000 that it may be required to apply for a listing and be moved to the NASDAQ's SmallCap Market unless that requirement is satisfied by December 11, 2000.

The Company has also been granted an extension of the previously announced waiver from the lenders under its credit facility through January 1, 2001. Nextera is continuing discussions with its lenders to amend the current credit facility to remedy the current technical defaults and obtain more favorable covenants.

Said Schneider: "We are determined to resolve these issues. When I joined Nextera, my foremost priority was to stabilize and improve the Company's capital structure to allow us take advantage of our tremendous franchise. Our discussions with our lenders under our credit facility continue, and, with the proposed re-capitalization coupled with the investment by Knowledge Universe, I'm confident that these steps will move us towards achieving this goal. "

About Nextera Enterprises

Nextera Enterprises, Inc., is a consulting group that addresses the most complex and challenging issues in the new economy. With extensive knowledge and experience in human capital management, economic analysis, strategic transformation and technology solutions, Nextera provides primarily Fortune 1000 companies with end-to-end professional services from strategy to implementation. Nextera Enterprises employs over 500 professionals and is headquartered in Lexington, Mass. The firm currently has other offices in New York, San Francisco, Chicago, Princeton, Cambridge, Raleigh, Rochester, Atlanta, Los Angeles, Dallas, London, Sydney and Toronto. More information can be found at www.nextera.com.

This press release contains certain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to Nextera Enterprises that are based on the beliefs of Nextera's management. Any statements contained in this press release that are not historical facts are forward-looking statements. Such statements are based on many important factors that may be outside Nextera's control, causing actual results to differ materially from those suggested. Such factors include, but are not limited to, Nextera's limited operating history, dependence on key personnel, attracting and retaining qualified consultants, new business solicitation efforts, intense competition, risks of acquisitions, regulatory changes, and changes in technology. Further information on these and other potential factors that could affect Nextera's financial and operating results are included in Nextera's 10-K filed on March 30, 2000 and in Nextera's 10-Q filed on November 14, 2000 with the Securities and Exchange Commission.