Peapod gets $30 million, expects profits in two markets this year

Peapod, Inc. has increased its $20 million credit facility with Ahold to $50 million. The Company said that with the approximately $14.7 million in cash and cash equivalents on hand at the beginning of the year, the $50 million credit facility provides Peapod with over $60 million in cash resources for operations. Peapod said its top priority is reaching profitability in two markets, Chicago and an East Coast market, by mid-2001 and that it is on track to meet this goal.

Peapod is now fully aligned with Ahold, an international food provider, in all of Peapod`s markets. This relationship gives Peapod a lower cost of entry into these markets and provides it with stronger buying power. Given this improved buying power, Peapod`s gross margin is expected to be near 30% in Q1 2001 compared with 26% recorded in the Q4 2000. Peapod had sales of about $93 million in 2000.