NETRATINGS SETTLES PATENT LITIGATION WITH JUPITER MEDIA METRIX, SEPARATELY ACQUIRES JUPITER MEDIA METRIX`S EUROPEAN AUDIENCE MEASUREMENT CONTRACTS
Milpitas, Calif. and New York, NY- May 7, 2002-NetRatings, Inc. (Nasdaq:
NTRT) and Jupiter Media Metrix, Inc. (Nasdaq: JMXI) jointly announced today
that they have settled Jupiter Media Metrix`s pending patent infringement
case against NetRatings. In a separate transaction, NetRatings has acquired
Jupiter Media Metrix`s contracts for European Internet audience measurement.
The patent infringement case settlement provides for the dismissal with
prejudice of the litigation and a $15 million payment by NetRatings to
Jupiter Media Metrix. Under the terms of the settlement, NetRatings has
acquired Jupiter Media Metrix`s patents for computer use tracking (United
States Patent Nos. 6,115,680 and 5,675,510), and granted Jupiter Media
Metrix a non-exclusive, assignable license to use the patented technology in
its domestic Internet audience measurement business until June 30, 2005.
The license fee payable to NetRatings will be $125,000 per month for the
period July 1 through September 30, 2002, and $375,000 for the fourth
quarter 2002. For 2003, 2004 and the period of Jan. 1, through June 30,
2005, the annual fee, payable quarterly, will be $1.5 million, $1.75 million
and $1 million, respectively.
In addition, as part of the settlement, Jupiter Media Metrix has granted
NetRatings a perpetual non-exclusive royalty-free license in certain
proprietary software associated with the utilization of the patented
technology.
In a separate transaction, NetRatings has acquired Jupiter Media Metrix`s
contracts for European Internet audience measurement and certain related
assets for $2 million in cash.
"Although we were confident about the strength of our legal position, we are
pleased to bring distracting and potentially costly litigation to a
successful close while ensuring that we end any question of the patent`s
impact on our ongoing business," said William Pulver, President and CEO of
NetRatings. "Equally important, we are excited about the opportunity to
introduce new international clients to the Nielsen//NetRatings service and
strengthen our global revenue base."
"We are pleased to put this matter behind us so that we may continue to
focus our resources on our core Jupiter analyst research and domestic Media
Metrix audience measurement businesses," said Robert Becker, CEO of Jupiter
Media Metrix. "This settlement and the sale of our European Internet
audience measurement assets are appropriate steps that enable us to
strengthen our overall financial position while we continue to pursue
strategies that enhance value for our shareholders."
About NetRatings, Inc.
NetRatings, Inc. (www.netratings.com) provides the global standard in
Internet audience measurement and analysis. Its technology driven products
and services enable customers to make informed business-critical decisions
regarding their Internet media and commerce strategies. Its products include
the Nielsen//NetRatings audience measurement services, the AdRelevance
online advertising measurement services, and the @plan user profiling and
analysis services. NetRatings has strategic relationships with both Nielsen
Media Research, the leading source of television audience measurement and
related services in the U.S. and Canada, and ACNielsen, a leading provider
of market research information and analysis to the consumer products and
services industries.
About Jupiter Media Metrix
Jupiter Media Metrix (www.jmm.com) is a global leader in Internet and new
technology analysis and measurement. Jupiter Media Metrix delivers
innovative and comprehensive Internet measurement, analysis and events to
provide businesses with unmatched global resources for understanding and
profiting from the Internet. Jupiter Media Metrix brings together
world-class, innovative and market-leading products, services, research
methodologies and people. The Company is headquartered in New York City.
Information Available from the SEC
NetRatings and Jupiter Media Metrix will each file with the SEC further
information about the transactions summarized in this press release on Form
8-K in the near future. Investors and security holders may obtain copies of
these documents, when they have been filed with the SEC, as well as other
SEC filings of NetRatings and Jupiter Media Metrix, free of charge from the
SEC`s website at www.sec.gov as well as from the applicable company by
directing a request to Jennifer Cohn, Stapleton Communications for
NetRatings, at 650-470-4203, or jennifer@stapleton.com, and to Investor
Relations for Jupiter Media Metrix, at 212-780-6060, or investor@jmm.com.
Safe Harbor Statement
This press release contains statements that may constitute forward-looking
statements pursuant to the safe harbor provisions of the Private Litigation
Reform Act of 1995. These statements are based on current expectations and
assumptions and involve a number of uncertainties and risks that could cause
actual results to differ materially from those currently expected. The
potential risks and uncertainties include, among others:
* Risks related to the growth of online advertising
* Risks associated with the rapidly evolving market for our products and
services
* The increasingly competitive market for online advertising research
services and Internet audience measurement and analytical services
* Risks associated with NetRatings` ability to service the acquired
international contracts
Additional information about potential factors that may affect NetRatings`
business and financial results is included in its Annual Report filing with
the SEC on Form 10K for the year ended December 31, 2001 including, without
limitation, under the captions "Management`s Discussion and Analysis of
Financial Condition and Results of Operations" and "Factors That May Affect
Our Performance." Additional information will also be set forth in
NetRatings` quarterly report on Form 10Q for the 3 month period ending on
March 31, 2002, which will be filed with the SEC in the near future.
NetRatings does not undertake to update any forward-looking statement that
may be made from time to time by it or on behalf of the Company.
For additional information about the risks that may affect Jupiter Media
Metrix` future business and financial results, refer to the company`s Annual
Report on Form 10-K for the year ended December 31, 2001, that is filed with
the SEC. Jupiter Media Metrix undertakes no obligation to update any
forward-looking statement that may be made from time to time by or on behalf
of Jupiter Media Metrix, whether as a result of new information, future
events or otherwise.
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