Vcommerce - Online Marketing, eCommerce Storefront, Order Management, Fulfillment & Logistics, Customer Service, dropship, inventory management, order processing, outsourcing fulfillment, 3pl



	Vcommerce™ - Internet Capital Group Funding Announcement On March 29, 2006 Vcommerce™ announced that it secured $13 million in funding from Internet Capital Group (Nasdaq:ICGE). Who is Vcommerce? Vcommerce Corporation is a private company, headquartered in Scottsdale, AZ. Founded in 1997, it provides on-demand commerce and fulfillment solutions to retailers, distributors and manufacturers for their multi-channel and direct-to-consumer initiatives. The company offers both turn-key and customized solutions that allow clients to quickly deploy an end-to-end e-commerce solution or integrate only the options that meet their unique business needs. What is Vcommerce announcing today? Vcommerce is announcing a strategic partnership with ICG. ICG has purchased $13 million of Series B Participating Preferred Stock for a 36% interest on a primary basis (28% on a fully diluted basis) in Vcommerce Corporation and will hold two of six Vcommerce board seats. Vcommerce will use approximately $5.5 million of this financing to redeem preferred shares from existing shareholders and the remainder of the proceeds will be used for working capital. When did this funding close? The transaction closed on March 28, 2006. What were the terms of this funding? In summary, ICG acquired a 36% primary interest in Vcommerce (28% on a fully diluted basis) with its purchase of $13 million of Series B Participating Preferred Stock and will hold two of six Vcommerce board seats. What percent of Vcommerce does ICG own? ICG purchased $13 million of Series B Participating Preferred Stock, resulting in a 36% interest on a primary basis (28% on a fully diluted basis) in Vcommerce. Who are the Vcommerce shareholders? ICG is the largest shareholder, with minority interest, with the remainder held by Dan Kennedy, President and CTO of Vcommerce, and other private shareholders. How much cash will be left after the transaction? Vcommerce received $13 million from ICG, of which approximately $5.5 million will be used by Vcommerce to redeem preferred shares from existing shareholders. After expenses, there will be approximately $6.8 million in cash to be used as working capital. Who are the Vcommerce clients? Vcommerce clients include leading retailers, distributors and manufacturers. Clients include two of the top three fastest-growing online retailers, and a representative list of Vcommerce clients is available at Clients. What is the Vcommerce mission? Our mission is to revolutionize how retailers, distributors and manufacturers operate their e-commerce businesses. The ICG partnership will strengthen this mission by providing additional working capital. Vcommerce will also be able to leverage ICG’s considerable operating experience, powerful network of industry contacts and expertise with high-growth technology companies. Why did Vcommerce secure this funding, and what impact will it have on the Vcommerce mission? Vcommerce secured this funding to provide additional working capital and to support the rapid growth in its client base and increased adoption of on-demand e-commerce services during 2005. Who is ICG, and what does this funding mean for Vcommerce going forward? Internet Capital Group (www.internetcapital.com) owns and builds Internet software companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies that are delivering on-demand software and service applications to customers worldwide. The Vcommerce business model and technology are a perfect match with the ICG vision. We will benefit from their capital support, expertise and strategic network of business relationships to support our continued growth and provide additional technology benefits to our clients. How will Vcommerce use this financing? Vcommerce will use this funding for working capital - to increase the value of our technology for our clients and to support our continued growth. Who is the Vcommerce Senior Management Team? Dan Clarke, Chief Executive Officer Dan Kennedy, President and Chief Technology Officer Bret E. Lawson, Chief Financial Officer Scott Hines, Chief Operating Officer PJ Bellomo, Senior Vice President Operations and General Manager Karen Greenberg, Vice President Sales and Marketing For biographies of Vcommerce’s leadership team, go to Management Team. Are there changes to ICG’s or Vcommerce’s boards? ICG will hold two of Vcommerce’s six board seats. The company will make these board change announcements as the partnership evolves. For biographies of Vcommerce’s current board members go to Board of Directors. What benefits can Vcommerce clients expect from the partnership with ICG? The additional working capital will enable Vcommerce to build on its existing platform and provide a more complete set of on-demand features. The evolution of this platform will help our clients meet increased competition in the retail industry and cost-effectively manage the complexities of operating their e-commerce businesses while offering their customers a satisfying shopping experience across all channels. Where can I find additional information about Vcommerce and this funding announcement? Updates may be posted periodically to the Vcommerce Web site located at www.vcommerce.com. You may also send an email to info@vcommerce.com.