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Webvan Soliciting Bids for Assets

Webvan Group Inc. announced on Monday that it is in the process of soliciting bids for the purchase of its business units, technology platforms and other assets. Interested parties must submit offers to the company by Aug. 27, 2001. The company has already contacted over 60 potential parties and anticipates that several interested parties will submit offers by the Aug. 27 deadline.

The centerpiece of the assets being offered for sale is Webvan's technology platform. Designed by some of Silicon Valley's top software engineers, the 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 company is also offering the HomeGrocer technology platform for sale. Interested parties are encouraged to contact George Colliat at 650/627-3453 for further information about the platforms.

Webvan also announced the completion of its first post-bankruptcy auction. On Aug. 7 and 8, Webvan auctioned the furniture, office equipment and material handling systems from its Atlanta facilities. Subject to the offers it receives from the Aug. 27 bid process, the Company will continue to pursue it asset sale strategy with auctions for the Bay Area and Baltimore scheduled for late September.

The company also announced that it did not expect to have any funds available to distribute to its stockholders. A company spokesman stated, "Based on our preliminary analysis of the likely recoveries on our assets versus the expected claims against those assets, we do expect to have funds available for distribution to our unsecured creditors. We do not expect, however, to have any funds available for distribution to our equity holders.
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