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buy.com Completes Sale of Its UK Operations To the John Lewis Partnership

The John Lewis Partnership will develop its Internet offer based on the buy.com UK technology and customer service platform. The existing buy.com UK business will continue in parallel with the John Lewis business. The two businesses will maintain their own distinct websites.

The terms of the deal remain confidential. The UK operations will not require any further cash investments from buy.com US, allowing the company to focus its resources on its domestic U.S. business.

Luke Mayhew, Director of Trading for Department Stores commented: “With this acquisition we have taken an important strategic step to establish John Lewis online. By acquiring proven technology and management expertise we expect to move rapidly to establish a leading position for John Lewis online. We are very excited at the prospects of combining John Lewis with buy.com - a vibrant business with an excellent management team and a top quality, scalable technology and customer service solution.”

Jim Roszak, CEO of buy.com U.S. commented: “Having successfully sold our UK operations, we can continue to focus on our domestic operations and our drive towards positive operating cash flow during this year. We are pleased that John Lewis has stepped in to leverage future e-commerce growth in the UK. We look forward to a close working relationship with John Lewis and the buy.com UK team in the future.”

The John Lewis Partnership operates 25 department stores across the UK and 136 Waitrose supermarkets which have a combined turnover of over (pounds sterling)4bn. Online, John Lewis offers a selection of its merchandise under the John Lewis Now site at www.johnlewis.com.

The John Lewis Partnership, through its Waitrose division, already has a significant presence in the e-commerce market place. It operates as an ISP through Waitrose.com. It also operates six online shopping services through Waitrose Direct.

Last year the company announced two major home delivery initiatives. The John Lewis Partnership took a 40% stake in the recently established Last Mile Solutions; LMS will use leading edge software and logistics to offer customers home delivered groceries at guaranteed time slots. A second complementary delivery service -- WaitroseDeliver -- based on the company's own store network began trials at the end of last year. Waitrose@Work, launched in 1998, is an Intranet office shopping service.

SOURCE: buy.com March 13^th 2001

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