OCLC purchase of netLibrary

[Ann Okerson <ann.okerson@yale.edu>]

DUBLIN, Ohio, Nov. 15, 2001

OCLC MAKES OFFER TO PURCHASE ASSETS OF NETLIBRARY

Subject to the approval of the bankruptcy court, OCLC Online Computer
Library Center announces that it has made an offer to purchase
substantially all the assets of netLibrary and assume certain netLibrary
liabilities.  netLibrary is a leading provider of eBooks, eTextbooks and
Internet-based content/collection management services.

Concurrently, netLibrary announced that it has voluntarily filed a
petition with the U.S. Bankruptcy Court for the District of Colorado for
relief under Chapter 11 of the U.S. Bankruptcy Code.  The transaction
includes a loan from OCLC, to be repaid upon the consummation of the asset
sale, to fund netLibrary�s on-going operations through the transition
period.  OCLC�s purchase of netLibrary�s assets and its operating-funds
loan to netLibrary are both subject to approval of the bankruptcy court.

"Electronic books and other forms of electronic content are quickly
becoming strategic drivers in the sharing and advancement of knowledge in
the digital age," said Jay Jordan, president and CEO, OCLC.  "This
potential alliance with netLibrary would advance our strategic directive
to deliver technologies and services that support, extend and enhance the
OCLC membership cooperative.  eBooks complement our growing e-journal
collection and provide exciting new synergies for our cataloging, resource
sharing, reference and digital preservation services."

"Across the OCLC cooperative, there is strong interest in OCLC�s pursuing
an alliance that would continue to make netLibrary�s eBook collection
available," said William J. Crowe, Chair, OCLC Board of Trustees.
"Indeed, 14 of OCLC�s 16 U.S. regional network affiliates have
arrangements for libraries in their regions to purchase netLibrary
resources.  The OCLC Board of Trustees has expressed its strong support
for pursuing this proposed alliance with netLibrary."

"OCLC represents an excellent opportunity for netLibrary patrons, partners
to continue to deliver the benefits of eBooks and electronic media to an
expanding market.  OCLC and netLibrary share a common commitment to grow
and strengthen the role of libraries and educators in the digital age,"
said Rob Kaufman, president and CEO of netLibrary. "We are proud of
netLibrary�s role in pioneering the eBook and eTextbook markets.  A
potential alliance with OCLC would extend the opportunity to reach more
patrons, grow catalog content and provide new and innovative learning
opportunities in libraries, classrooms, homes and offices around the
globe."

netLibrary develops and markets eBooks and MetaText digital textbooks.
eBooks are full-text electronic versions of published books that library
patrons can search, borrow, read, and return via the Internet.  With
netLibrary eBooks, users can access library resources anywhere, anytime,
and perform full-text searches across hundreds of books or within a
specific book to speed research and reference projects.  eBooks can be
viewed online from any location using an Internet browser.  netLibrary�s
catalog now contains approximately 40,000 titles covering a wide range of
subject areas such as business, economics, technology, the social sciences
and more.

netLibrary also markets MetaText digital textbooks, interactive, web-based
textbooks with enhanced teaching, collaborating and learning tools for
teachers and students.  MetaText works with the leading textbook
publishers to transform print textbooks into course-centric digital
textbook learning environments.  The MetaText catalog of digital
textbooks, which includes more than 160 titles, covers topical areas
ranging from Anthropology to Zoology.

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