Webvan Group Inc · 8-K · For 10/4/01 · EX-99.1

Filed On 10/11/01   ·   SEC File 0-27541   ·   Accession Number 1012870-1-502258

Current Report   ·   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         3      9K 
 2: EX-99.1     Press Release                                          2      8K 

EX-99.1   ·   Press Release

EX-99.1
1st Page of 2
TOC
Top
Previous
Next
Bottom
Just 1st
 

Exhibit 99.1                                                                    

For Release at 6:15 am October 4, 2001                                          

                                                          Contact: Dara Williams
                                                                    650.627.3301

 WEBVAN SELLS TECHNOLOGY PLATFORM AND OAKLAND DISTRIBUTION
CENTER TO KAISER FOUNDATION HOSPTALS
 Webvan Assigns Carson, Asuza and Fullerton Leases

FOSTER CITY, CA (03 October 2001) -- Webvan Group, Inc. announced today that it 
has sold its technology platform to Kaiser Foundation Hospitals for $2.65       
million. The transaction, which was approved by the Bankruptcy Court on October 
3/rd/ was closed immediately thereafter with Kaiser taking possession of the    
technology platform as well as Webvan's Oakland Distribution Center.            

The transaction included the sale of both the HomeGrocer and Webvan technology  
platforms, the trademarks, patents, copyrights as well as the URL's, including  
both Webvan.com and Homegrocer.com. "We're pleased to see that what was built by
the many talented people at Webvan and HomeGrocer will continue to operate as a 
premier technology platform and distribution system" said a Webvan spokesperson.
"Kaiser clearly saw the value of our technology and the potential that can be   
realized from the acquisition of our state-of-the-art warehouse."               

The value of the transaction to Webvan far exceeds the $2.65 million that Kaiser
paid for the technology platform because Kaiser also purchased the assets of    
Webvan's Oakland Distribution center for approximately $1.4 million and took    
over Webvan's lease obligations, eliminating a significant liability. "In our   
estimation, we see the value of the combined Kaiser package exceeding $5 million
to the estate," said Scott McNutt, an attorney with McNutt & Litteneker, counsel
to the Official Committee of Unsecured Creditors in the bankruptcy proceedings  
of Webvan. "As such, this deal represents a significant value for our           
creditors."                                                                     

In addition, Webvan also announced that the leases for its facilities in Carson,
Asuza and Fullerton were all assigned to other users. These transactions        
included the sale of refrigeration equipment; however, all of the conveyor      
equipment, racking, computer equipment and vehicles remain to be sold in        
upcoming auctions to be held at each of these facilities. "We made great strides
in eliminating our lease liabilities" said Allen Arthur, Director of Real Estate
for Webvan. "We're excited about our upcoming auctions at each of these three   
facilities and are also looking forward to strong auctions at our facilities in 
Seattle; San Diego and Chicago. We believe that buyers have a fantastic         
opportunity to pick up top-quality equipment at each of these auctions."        

The auction schedule is as follows: Seattle: October 11; San Diego: October 13; 
Fullerton: October 15; Carson: October 16; Asuza: October 17 and Chicago October
23. Persons interested in finding out more information about these              

EX-99.1
Last Page of 2
TOC
1st
Previous
Next
Bottom
Just 2nd

auctions are encouraged to contact Mark Weitz of Great American/ Shottenstien   
(Webvan's auctioneers) at (818) 884-3737                                        

Webvan also announced that DoveBid, Inc. was selected to conduct the auction of 
Webvan's headquarter assets which include servers, disk arrays, storage         
equipment, networking gear, telecommunications equipment and furniture. This    
auction is planned for October 30/th/ and will take place at Webvan's Foster    
City headquarters. Persons interested in finding out more information about this
auction are encouraged to contact Kirk Dove of DoveBid at (650) 571-7400.       

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995:   
The statements contained in this press release that are not historical facts,   
including the statements relating to the potential recovery and timing of       
auctions are forward-looking statements that involve certain risks and          
uncertainties, including but not limited to: the risk that the auction timing   
may be delayed, that the auctions may be cancelled or that the proceeds         
recovered may be materially less than expected.                                 

-30-

Dates Referenced Herein   and   Documents Incorporated By Reference

				Referenced-On Page
This 8-K Filing		Date		First		Last			Other Filings
For The Period Ended		10/4/01		1
Filed On / Filed As Of		10/11/01
Top									List All Filings