artnet.com implements cost cutting program

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About Us | Press Releases | November 28, 2000

artnet implements cost cutting program

Break-even now scheduled for Q4 2001

Frankfurt, November 28, 2000 - artnet AG of Frankfurt and New York today implemented a cost cutting program. Together with rapidly rising revenue, the measures will reduce the annual operating loss for the leading art information and transaction site by $11 million in 2001 compared to 2000. Hans Neuendorf, CEO of artnet, also announced that the company is scheduled to break-even in Q4 2001, which is earlier than previously anticipated.

The key cost cutting measure streamlines artnet online auctions down to the most successful categories, which will eliminate a major source of net loss. After all necessary investments in the company's infrastructure are completed and the cost cutting measures are fully implemented, including reductions of personnel, no further net losses in this area are expected in future periods. artnet continues to focus its resources on its two strongest product lines and revenue sources, which are the online gallery network and the Fine Art Auctions Database. The revenue projections for these two products are expected to more than double in 2001 to nearly $10 million. In support of this effort the sales team for the online gallery network increased 50 percent in the first nine months of this year.

For further information:
Hans Neuendorf
Chief Executive Officer
61 Broadway, 23rd Floor
New York, NY 10006

Tel: 001-212-497-9700 x638
Fax: (1) 212-497-9707

Dr. Bernhard Blohm
eqinet Communications GmbH

Tel: 49- (0)69-58-997-300
Fax: 49-(0)69-58-997-349
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