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ICSTI: Press Release on Rowe.Com



------- Start of forwarded message -------
From: Jill ONeill <jilloneill@nfais.org>
To: NFAIS-L@LISTSERV.SILVERPLATTER.COM
Reply-To: NFAIS Listserv <NFAIS-L@LISTSERV.SILVERPLATTER.COM>
Subject: Fwd: Press Release on Rowe.Com
Date: 09/01/2003 20:14:23

As posted today on the Liblicense listserv and forwarded in its entirety:

FOR IMMEDIATE RELEASE

January 8, 2003

RoweCom, Inc. ("RoweCom" or the "Company"), doing business as Faxon or
Divine Information Services, announced today that two parties are in the
process of performing due diligence procedures regarding a potential
purchase transaction for all or portions of its business.  These due
diligence procedures include an examination of the current financial
condition of the Company as well as discussions with various publishers
regarding possible financial accommodations that may be available to
facilitate a potential transaction.

Management continues to work with the Steering Committee (see description
below) and has been working with divine in an attempt to obtain a
satisfactory resolution to RoweCom's continuing financial problems.  In an
effort to reach a global resolution of these financial issues, a meeting
has been scheduled for next Tuesday and Wednesday, January 14th and 15th
with representatives for RoweCom and the two possible potential
purchasers, the Steering Committee and divine inc ("divine").

As previously announced, RoweCom is experiencing financial difficulties
that has resulted in RoweCom not being able to place or make payments for
the substantial majority of its customer orders for 2003 subscriptions.
RoweCom has been advised recently by its parent company, divine, that
divine has recently decided to no longer support the subscription
aggregation business.  Without the support of divine, RoweCom has been
forced to explore strategic alternatives that may ultimately include the
sale or shutdown of the business.

Initially, three publishers (Elsevier, John Wiley and Blackwell), as a
significant accommodation to this process, agreed to continue to
distribute journals through January 2003 to RoweCom's customers.  Since
that time, additional publishers have agreed to do the same.  However,
without the satisfactory placement of orders and related payments, there
can be no assurance that other publishers will distribute journals or that
any journals will be distributed by any publisher after January 2003.

RoweCom will continue limited operations during this exploration period.
The Company is attempting to cooperate with the publishers by providing
them with listings of pending orders. However, due to the current
financial position, no additional orders are being placed for fulfillment
nor payments being released to publishers.  Any funds received
prospectively for subscriptions will be maintained in a segregated account
pending resolution.  Funds received from clients will not be released to
publishers nor will they be refunded to customers during this exploration
period.  A status of an individual client subscription  account is
available from your customer service representative.

An ad hoc committee (the "Informal Committee") has been formed in order
to, among other things, perform investigations and analyses of the
operations and financial condition of RoweCom and its parent corporation,
divine, initiate negotiations with RoweCom and divine, and to take such
other actions that the Informal Committee may determine are in the best
interests of its constituency.  The Informal Committee has met
telephonically and appointed a Steering Committee that includes five
publishers and five clients of Rowecom.  The Steering Committee has
retained legal counsel and a financial advisory firm to assist them in
evaluating the situation.  Correspondence to the ad hoc committee can be
sent to adhoccommittee@nyc.rr.com.

RoweCom asks for the continued patience of its clients during the next
week and will provide you with a further update as to status of the
process no later than January 18th, 2003.  If during the meantime, you
have not received a publication that you have ordered, please contact your
customer service representative at (800) 769-3266.

Thank you for consideration and understanding during this most difficult
period.

RoweCom is a subsidiary of divine, inc. (NASDAQ: DVN).  This press release
contains certain forward-looking statements with respect to the Company
that are subject to risks and uncertainties that include, but are not
limited to, those identified in the Company's press releases. For example,
such risks and uncertainties include the ability of the Company to
implement a restructuring plan to maximize the amount realized for
stakeholders; continued cooperation of the Company's leading publishers;
the availability of strategic alternatives for the Company; the adequacy
and availability of cash to operates its business; the Company's ability
to maintain sufficient cash flow and liquidity; the availability and
accessibility of financing at affordable levels for the Company and the
ability of the Company to tightly control expenditures.

--end--

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