NANC Managers' October 15 message regarding potential netLibrary sale

Date: Tue, 16 Oct 2001 13:38:46 -0700 (PDT)
From: John F Helmer 
To: Northwest Academic netLibrary Collection 
Subject: NANC and potential netLibrary sale


Many of you are probably aware of netLibrary's financial difficulties and
potential sale (see the email below or
http://www.thedailycamera.com/business/tech/13bnetl.html).  I just wanted
to assure you that NANC managers (Tim Jewell, John Popko, and I) are
watching these developments and will discuss our options.  For now we have
put a hold on purchasing new titles.

It is also worth noting that about six months ago we decided to remove the
unspent NANC balance from netLibrary and deposit those funds with BCR, the
fiscal agent for this project.

Let's hope that the sale goes well and we do not have to test netLibrary's
escrow agreement with OCLC.

-- John Helmer, for NANC Managers

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Date: Mon, 15 Oct 2001 14:24:12 -0400 (EDT)
From:   netLibrary 
To:     netLibrary Customers
Subject:        netLibrary Update

To all netLibrary Customers, Partners, and Friends:

Thank you all for the interest, concern, and support you have shown in
response to recent news that netLibrary is talking with interested buyers
for the company.  As we work through the many difficult and complex issues
surrounding this possibility, our desire to communicate must be balanced
against the need to first resolve open issues in ways that ensure we
communicate with you accurately and completely.  Nevertheless, we know you
have many questions, which we will begin to address here.  Going forward, we
will continue to communicate with you regularly to keep you abreast of any
changes.  Currently, the facts are as follows:

1. While additional investment funding looked extremely positive a few
weeks ago, those investors made the decision not to invest based on
several factors, including overall economic conditions.

2. netLibrary immediately began to pursue the possibility of being acquired
by a number of possible candidates with interest in the library, publishing
and eBook marketplace.  Those discussions continue today.

3. It is true that the majority of employees returned to work with the
understanding that salaries would be significantly reduced and that future
employment would be dependent on identifying an interested buyer and related
bridge loan financing.  Their passion for eBooks and their deep concern for
our customers and business partners is reflected in the number of those who
returned to work this morning, ready to continue to service and support our
customers as management works through this difficult transition period.

4. Access to your eBooks continues.  Should that change, we will contact you
via email.

5. Some related services may be put on hold temporarily.  For example, you
will not be able to order promotional materials until further notice.
Additionally, we will be reorganizing and reassigning staff to help wherever
needed.  Consequently, we ask that you be patient as we work to answer any
and all customer support questions.

Unquestionably, you will hear much about netLibrary in the coming days from
many sources.  Certainly, the decisions we must make are very serious and
extremely complex, and because it will take time to develop solutions, there
will be a tendency by some to couch all discussion in a negative light.  We
ask for your balanced consideration, your continued support of eBooks and
netLibrary, and your understanding that we will do our very best to
communicate the facts to you as they become available.  The employees and
the management team remain highly committed to doing everything we can to
bring this to successful resolution - that commitment derives in large
measure from the enthusiasm and passion you have shown us these past three
years.  We hope we can continue to count on that support to see us through.

Sincerely,

Rob Kaufman
President and CEO

Rich Rosy
Executive Vice President