LAS VEGAS, May 2, 2002 (PRIMEZONE) -- PurchasePro (Nasdaq:PPRO) today announced that its board of directors has approved a 1-for-5 reverse split of the company's common stock effective May 14, 2002 for shareholders of record on that date. The company said the action will reduce the number of its shares outstanding to approximately 17.6 million from about 88 million.
Richard L. Clemmer, chief executive officer, said, "We take this action to assure PurchasePro continues to meet listing requirements for the Nasdaq National Market. We also believe that the split will help create a more manageable capital structure with reduced administrative costs. Furthermore, we would hope this action will have a beneficial impact on the short interest activity that has been, we believe, detrimental to PurchasePro's stock performance."
Clemmer added, "We believe this action, along with continued positive results relating to our turnaround, will result in increased visibility of our stock to institutions and other investors."
About PurchasePro
PurchasePro(r), www.purchasepro.com, is a B2B e-commerce leader with the objective of providing software to enable enterprises of all sizes to gain universal access to the world's largest commerce network. Founded in 1996, PurchasePro provides electronic procurement, materials management and strategic sourcing solutions to businesses worldwide.
This news release may include forward-looking statements, which are subject to the "Safe Harbor" created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve certain risks and uncertainties that can cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements represent only the views of certain members of management and are based on limited information available to us now, which is subject to change. We have no current plan to update these statements. Actual results may differ substantially from what we say today and no one should assume at a later date that the forward-looking statements provided herein are still valid. They speak only as of today. For more information about these risks and uncertainties, see the SEC filings of PurchasePro.com, Inc., including the section titled "Factors That May Affect Results" in its 10-K filing for the period ended December 31, 2001 that is available from the company on request and on the Internet at the SEC's Website, www.sec.gov. Note: PurchasePro is a service mark of PurchasePro.com Inc. All other trademarks or registered trademarks are the property of their respective owners.