CMGI completes acquisition of Open Channel Solutions

  
    
  
  
    
      CMGI®, Inc. (NASDAQ: 
      CMGI), a global leader in supply chain management services, today 
      announced it has completed its previously announced acquisition of Open 
      Channel Solutions, Inc. (OCS), a leading global provider of entitlement 
      and e-business management solutions. The acquisition creates a 
      complementary offering between OCS’ digital 
      content distribution capabilities and the supply chain management 
      services offered by CMGI’s subsidiary 
      ModusLink, to create a complete “digital to 
      physical” supply chain management solution.
    
    
      Under the terms of the agreement, announced February 20, 2008, CMGI paid 
      a net purchase price of approximately $11.0 million in the all-cash 
      transaction, which is valued at $24.5 million, due to an existing 
      minority interest in OCS and the repayment of debt it currently holds. 
      As previously announced, CMGI expects the transaction to be neutral to 
      earnings per share in fiscal 2008 and accretive thereafter.
    
    
      OCS will maintain its headquarters in Dedham, Mass. and operate as a 
      wholly owned subsidiary of CMGI. Ed Rose, president and chief executive 
      officer of OCS, and the entire management team will remain with the 
      company. OCS employs more than 80 people worldwide, with offices in 
      Japan, the Netherlands, Australia and Utah.
    
    
      “We have seen a consistent need for support 
      of digital content distribution, in addition to physical distribution of 
      products,” said Joseph C. Lawler, chairman, 
      president and chief executive officer of CMGI. “By 
      acquiring OCS, we can now offer clients digital delivery support of 
      their electronic products such as software or digital media, in addition 
      to the capabilities provided by ModusLink, to create a single point of 
      contact for all of our clients’ distribution 
      needs, both physical and electronic.”
    
    
      About CMGI
    
    
      CMGI, Inc. (NASDAQ: CMGI), through its subsidiaries ModusLink and Open 
      Channel Solutions, provides industry-leading global supply chain 
      management services and solutions that help businesses market, sell and 
      distribute their products around the world. In addition, CMGI’s 
      venture capital business, @Ventures, invests in a variety of technology 
      ventures. For additional information, visit www.cmgi.com.
    
    
      About ModusLink
    
    
      ModusLink Corporation is a leading provider of global, end-to-end supply 
      chain management solutions. The company provides technology clients in 
      the software, computing, consumer electronics, storage and 
      communications markets with customized supply chain solutions that 
      improve time-to-market, productivity and customer satisfaction while 
      reducing risk and cost. ModusLink's services include consulting and 
      planning, sourcing and supply base management, manufacturing and product 
      configuration, fulfillment, logistics management, e-commerce and the 
      complete range of aftermarket services. ModusLink has more than 30 
      facilities in 13 countries, creating the largest global footprint in the 
      industry. With headquarters in Waltham, Mass. the company is a 
      subsidiary of CMGI, Inc. (NASDAQ: CMGI). For additional information, 
      visit www.moduslink.com.
    
    
      About Open Channel Solutions
    
    
      Open Channel Solutions (OCS) is a leading global provider of entitlement 
      and e-business management solutions, including its flagship Poetic™ 
      product. The company’s self-service offerings 
      help organizations increase software renewal revenues; extend their 
      reach and manage sales in the growing SMB market through multi-tiered 
      channels; effectively distribute electronic software and content; and 
      eliminate costly, inefficient e-business IT processes. OCS is 
      headquartered in Dedham, Mass., and has offices in Utah, the 
      Netherlands, Japan and Australia. For more information, visit www.ocs.com.
    
    
      This release contains forward-looking statements, which address a 
      variety of subjects including, for example, the expected benefits of the 
      transaction, the expected financial contribution of OCS and the 
      expansion of capabilities expected to occur as a result of the 
      transaction. The following important factors and uncertainties, among 
      others, could cause actual results to differ materially from those 
      described in these forward-looking statements: There can be no assurance 
      that projected financial results will be attained; There can be no 
      assurance that other suitable acquisitions will be identified or 
      available on terms acceptable to CMGI; CMGI's success depends on its 
      ability to execute on its business strategy and the continued and 
      increased demand for and market acceptance of its solutions and 
      services; CMGI may not be able to expand its operations in accordance 
      with its business strategy; CMGI may experience difficulties integrating 
      technologies, operations and personnel in accordance with its business 
      strategy; CMGI derives a significant portion of its revenue from a small 
      number of customers and the loss of any of those customers would 
      significantly damage its financial condition and results of operations; 
      increased competition and technological changes in the markets in which 
      CMGI competes; and risks associated with international operations. 
      ModusLink represents a significant percentage of CMGI's operations and 
      the occurrence of any of the foregoing factors with respect to ModusLink’s 
      business may have an adverse effect on CMGI’s 
      results of operations and financial results. For a detailed 
      discussion of cautionary statements that may affect CMGI's future 
      results of operations and financial results, please refer to CMGI's 
      filings with the Securities and Exchange Commission, including CMGI's 
      most recent Annual Report on Form 10-K and Quarterly Report on 
      Form 10-Q. Forward-looking statements represent management's current 
      expectations and are inherently uncertain. We do not undertake any 
      obligation to update forward-looking statements made by us.
    
    
      CMGI is a registered trademark of CMGI, Inc. and ModusLink is a 
      registered trademark of ModusLink Corporation. All other company 
      names and products are trademarks or registered trademarks of their 
      respective companies.