Webvan Accepts $2.5 Million Bid for Technology Platform

Webvan Group Inc. announced on Friday that it has entered into a $2.5 million contract for the sale of its technology platform to Mercury Acquisitions Corporation, a company controlled by Webvan's founder, Louis Borders.

In early August, Webvan began soliciting bids for its assets, including both the Webvan and HomeGrocer technology platforms. Over 100 parties were contacted and more than 30 entities expressed interest in the platform. After reviewing all proposed offers for the technology platforms, Webvan chose Mercury Acquisition Corporation's offer to purchase the Webvan and HomeGrocer technology platforms, as well as their respective trademarks, patents and other intellectual property.

Webvan also announced that the Bankruptcy Court today approved the procedures by which the sale of the technology platforms to Mercury would be approved. According to the Court's order, the agreement with Mercury Acquisition Corporation will be subject to an overbid auction to be held on October 1, 2001. Others interested in purchasing the technology platforms are continuing their due diligence inspections and are anticipated to bid for the platform at the auction.

"We're very excited about our deal with Mercury and are hopeful that the process we began back in August will result in the highest value for our creditors," said a Webvan spokesperson. "These technology platforms represent some of the best work by some of the best software designers. In particular, the Webvan platform is modular in design and as such is extremely versatile -- capable of a range of functions from a completely integrated e-commerce platform to supporting warehouse management and delivery operations. The price currently offered is a fraction of what it would cost to develop a comparable platform and represents a unique opportunity in today's difficult business climate."

Persons interested in finding out more information about the sale of the technology platforms and the auction process are encouraged to call Dara Williams at 650/627-3301 or Webvan's bankruptcy counsel, Debra Grassgreen at 415/263-7000.
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