GfK Makes Strategic Investment in Caribou Lake Software; GfK to Leverage Caribou Lake Expertise to Grow Database Marketing Practice

Business Wire, Jan 23, 2001

Business Editors & Technology Writers

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 23, 2001

Caribou Lake Software today announced that The GfK Group, a leading global market research company, has made a strategic investment in the company. Under the terms of the agreement, signed last Thursday, GfK purchased 19.9% of Caribou's outstanding stock, will provide Caribou access to working capital to fund its growth into the future, and will join the Caribou board of directors. Financial details were not disclosed.

The GfK Group, which includes Minneapolis-based Custom Research Inc. (CRI), is experiencing significant growth in the database marketing segment of its business. Through its investment in Caribou, GfK has taken a stake in a company that delivers complex Web applications with large-scale databases. The partnership between Caribou Lake and CRI is the key driver for this agreement. CRI is now in a position to better respond to client demands for access and utilization of the masses of data they have, but are not using to full potential. Teamed with Caribou Lake, CRI plans to use new technologies and the Internet as platforms to provide new services to customers.

"A key to GfK continuing its market leadership position is to use new technologies and the Internet in many ways: as a communication medium in the business-to-consumer and business-to-business sectors, as a platform for providing client services and as a new business opportunity," said GfK Chief Executive Officer Dr. Klaus L. Wubbenhorst. "Our partnership with Caribou Lake Software will provide us capabilities in these areas that we have not had before."

CRI President Judy Corson added, "We have had outstanding success working with Caribou Lake Software on delivering complex Web-based database marketing solutions in partnership with our ad hoc database marketing services to our clients this past year. Client satisfaction drives all of our activities. Solidifying our relationship with Caribou through this investment will benefit our clients by providing them with a team that will bring additional products and services that incorporate the latest database and Internet technologies."

Gil Anderson, Caribou Lake Software's President, said the strategic investment poses an ideal situation for Caribou Lake. "GfK is investing in us because of our project management capabilities and technical expertise," he said. "In turn we secure our future growth, get the opportunity to work closely with great GfK companies like CRI, and still maintain our autonomy and the business objectives."

About The GfK Group

The GfK Group, a leading international market research organization, is set to achieve total revenues of US$440 million in the year 2000 (1998: Euro 389 million) in its four business divisions, Consumer Tracking, Non-Food Tracking, Media and Ad Hoc Research. In addition to 14 German subsidiaries, the company has over 90 subsidiaries and affiliates located in 44 countries worldwide. GfK has about 4,300 total employees, of which 1,350 are based in Germany. For further information, visit our website: www.gfk.de.

About Custom Research Inc.

CRI, a U.S. subsidiary of the GfK Group, provides marketing research, customer satisfaction, and database marketing services worldwide, servicing Fortune 500 companies in consumer, high-tech, financial services and business-to-business markets. CRI delivers the power of knowledge to our Fortune 500 clients through quality principles and processes, fresh perspectives and insights, state of the art research tools, and unparalleled customer service. Founded in 1974, CRI is ranked among the top 30 research firms in the United States and has client service offices in Minneapolis, New York, and San Francisco. For further information, visit www.customresearch.com.

About Caribou Lake Software

Caribou Lake Software is a Minneapolis-based technology consulting firm that specializes in the custom development of business-to-business and business-to-consumer e-commerce solutions. The company also provides middleware products for Java to RDBMS connectivity and offers a full suite of Java education courses. For more information on Caribou Lake Software and its products, call 952-837-9802, or visit www.CaribouLake.com.