Compaq and CMGI Announce Internet Alliance with China's Shanghai Information Investment - Company Business and Marketing

Edge: Work-Group Computing Report, Dec 20, 1999

Compaq Computer Corporation Inc. and Shanghai Information Investment Inc. (SII) of China Monday announced that the companies have initiated the formation of a strategic alliance to pursue cooperative Internet opportunities in China. The Internet investment and management arm of the Shanghai government, SII was formed in 1997 to support and promote the development of the IT and Internet industries in China.

The strategic alliance is intended to result in the formation of a joint venture, to be based in Shanghai, that would build and operate a range of Internet and electronic commerce services to assist government and private enterprises adapt their businesses for the Internet. The joint venture is also expected to include an investment consulting and management unit that would serve to identify and develop emerging Internet businesses serving the Chinese market.

Today, SII holds controlling interest in some of the leading Internet infrastructure and commerce companies in China, including Shanghai Information Network, Shanghai's ATM backbone; Shanghai Cable Network, a leading broadband network; Shanghai E-Commerce CA Center, certificate authority services; and Shanghai Credit Information Services, the first Chinese credit information provider. In addition, SII's investors include Shanghai Alliance Investment Ltd.; Shanghai Post and Telecom Administration; the Shanghai Broadcast Radio, Film & TV Bureau; and SPTA, the parent of Shanghai OnLine, one of the largest ISPs in China.

Announcing the alliance at the signing of a memorandum of understanding between the three companies at Compaq's new Electronic Commerce Competency Center in Shanghai, SII Chairman Yang Xiong stated, "As world-leading information technology and Internet companies, Compaq and CMGI understand China's needs for the Internet. We are pleased to jointly pursue Internet and electronic commerce opportunities in China and become a major force in China's Internet development in the 21st century."

"We're extremely pleased that SII, a pioneer in the Chinese Internet marketplace, has selected CMGI as its strategic partner," said David Wetherell, Chairman and CEO of CMGI. "The expansion of CMGI and its operating companies into new international markets will be a recurring theme for the coming year, and our relationship with SII extends the CMGI network with a powerful base of Asian partners, and the unique opportunity to be a leading enabler of the country's acceleration to the Internet."

"Compaq is committed to providing the systems, solutions and services to run the Internet around the world," said Michael D. Capellas, President and CEO of Compaq. "In partnership with CMGI and SII, Compaq will apply its considerable expertise and Asian-based resources to help deliver further advancements to China's Internet and e-commerce infrastructure."

Compaq continues to Invest in the Internet in China with the establishment of a new multi-million dollar electronic commerce competency center and a large-scale call-center serving local enterprises and multinational corporations operating in China. This includes an expanded focus on Internet expertise for the government, finance and telecom with the goal of becoming a leading provider for electronic commerce enterprises in China.

While expanding both Compaq's and CMGI's footprint in Asia, the alliance with SII is just the latest result of the expanding strategic relationship between the 2 companies. Since the summer of 1999, CMGI and Compaq have announced a number of inter-company relationships, including Compaq's strategic positions in Engage and MyFamily.com, the integration of several CMGI and @Ventures companies with AltaVista, and most recently, AltaVista's acquisition of Raging Bull.

Compaq Computer Corporation, a Fortune Global 100 company, is the second-largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions, commercial desktop and portable products and consumer PCs. The Company is an industry leader in environmentally friendly programs and business practices. Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at http://www.compaq.com.

With more than 50 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest, most diverse network of Internet companies in the world. This network includes both CMGI operating companies and a growing number of synergistic investments through its venture capital affiliate, @Ventures. CMGI leverages the technologies, content, and market reach of its extended family of companies to foster rapid growth and industry leadership across its network, and the larger Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI.