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The Boston Consulting Group, General Atlantic Partners And Goldman Sachs Create iFormation Group To Develop e-commerce Businesses With Global 2000 Companies

New York (ots)

--New Company To Build and Accelerate New E-Commerce Enabled
Businesses In Partnership With Established Global Market Leaders--
The Boston Consulting Group, Inc. (BCG), General Atlantic
Partners, LLC, and The Goldman Sachs Group today announced the
creation of iFormation Group and their combined commitment to invest
an initial $300 million in the company.
iFormation Group will partner with the largest and most
influential companies in the world - the Global 2000 - to form,
acquire, develop and accelerate new online businesses by building
upon the strength of those companies' existing offline assets. 
iFormation Group's ability to develop and integrate the online and
offline assets of Global 2000 companies will help them create value
and advance their core business strategies.  iFormation Group also
will partner with select start-up companies, as well as create new
companies, whose focus is on collaborating with the Global 2000 on
e-commerce initiatives.
In addition to providing funding necessary to create new
e-commerce-related businesses, iFormation Group will provide a
complete range of strategy, business development, financial, and
operational services in order to launch and build them rapidly into
long-term global leaders in their fields.  For example, the company
will help define new business models, provide incubation services,
assist in designing and building technology infrastructure, and
recruit senior management talent for its network companies.
iFormation Group will be headquartered in New York and have
offices in London and Hong Kong.  Additional offices in Europe, Asia
and North America will follow.  The company also will build and
operate acceleration facilities in both New York and London, giving
it the flexibility to build businesses at its own facilities as well
as at the locations of its Global 2000 partners.  David K. Pecaut,
senior vice president of BCG and former co-head of its e-commerce
practice, will leave BCG to become president of iFormation Group.  He
will become president of iFormation Group effective immediately. 
iFormation Group's board of directors will consist of Mr. Pecaut,
René Y. Abate and William H.L. Burnside, senior vice presidents of
BCG, Steven A. Denning and Clifton S. Robbins, partners of General
Atlantic, and Joseph H. Gleberman and Gene T. Sykes, managing
directors of Goldman Sachs.  Mr. Robbins will be the chairman of
iFormation Group.
iFormation Group's competitive advantages will be based on six
critical factors:
Focus on online/offline partnerships:  iFormation Group will focus
on opportunities to create new online businesses by building upon the
strength of companies' existing offline capabilities.
Global 2000 focus and expertise:  iFormation Group will be one of
the few companies focusing on opportunities that exist within the
largest companies in the world and on newer ventures seeking to
partner with the Global 2000.  Its founding partners have unsurpassed
experience and expertise in working with such companies.
Extensive network of relationships:  iFormation Group's founding
partners have strong, long-term relationships with major corporations
and industry leaders around the world.  It is therefore well
positioned to facilitate the partnerships necessary to leverage
offline businesses into new online companies.
Thorough understanding of strategic and operational challenges: 
Through their extensive experience in building offline/online
partnerships, the partners in iFormation Group have a deep
understanding of the challenges of this type of opportunity,
especially how to create businesses that allow established companies
to realize the value of their existing asset bases.
Internet/IT experience:  General Atlantic, as one of the largest
and most successful Internet/IT investors, BCG, as a recognized
leader in e-commerce transformations, and Goldman Sachs, as a
pre-eminent advisor to and investor in technology companies globally,
bring unparalleled Internet and IT expertise to iFormation Group.
Immediate global reach:  The worldwide networks of the founding
partners provide iFormation Group with immediate global reach to
pursue opportunities and replicate successful businesses around the
world.
"The first chapter in the history of building Internet businesses
was led by pure-play start-ups," said Mr. Pecaut, iFormation Group's
president.  "The next chapter will be defined by large Global 2000
corporations with substantial offline businesses and leading market
positions globally that can serve as a valuable springboard into
e-business.  While many of these companies are already making
significant investments in online businesses, they frequently lack
the resources necessary to exploit fully the value of their offline
assets.  iFormation Group will be able to provide those capabilities
by partnering with Global 2000 companies to form new e-businesses"
Mr. Robbins, a partner of General Atlantic and chairman of
iFormation Group, said, "Large, global companies have a tremendous
opportunity -- and challenge -- to be long-term winners in the new
Internet-driven economy.  iFormation Group's management and network
of resources will generate value for Global 2000 companies by
emphasizing speed to market, core business development and
best-of-breed technology resources.   Powered by the global reach and
complementary resources and expertise of BCG, General Atlantic and
Goldman Sachs, iFormation Group's mission is to be the preferred
partner of Global 2000 companies seeking to leverage their offline
capabilities into online businesses, and to be the preferred partner
of newly-formed companies seeking to serve Global 2000 companies in a
similar way."
"iFormation Group provides Goldman Sachs with another product to
offer our clients, and leverages the deep technology resources within
the Firm," commented Henry M. Paulson, Jr., chairman and chief
executive officer of The Goldman Sachs Group, Inc.  "Many of our
clients look to us to develop their e-commerce and e-enabled
strategies, and iFormation Group combines the complementary skill
sets of three market leaders to meet this need more effectively than
any one of us could on our own.  We have tremendous respect for both
BCG and General Atlantic and are delighted to partner with them on
this venture."
"We believe that iFormation Group represents by far the most
significant initiative aimed at equipping the Global 2000 for the new
economy," said Carl Stern, chief executive officer of The Boston
Consulting Group.  "Working together with iFormation Group, we can
better respond to those clients who require a comprehensive process
of new-business creation combining strategic advice, business
building and launch support with capital funding."
iFormation Group has assembled a management team that will
include, in addition to Mr. Pecaut, some senior members of BCG's
e-commerce practice; it is also recruiting other professionals with
expertise in a variety of areas, such as business operations,
investing, recruiting and technology.  In addition, iFormation Group
will draw on the resources and expertise of its founding partners. 
BCG will provide access to its e-commerce professionals and launch
teams to support iFormation Group's effort and that of its network
companies.  Consistent with its value-added partnership approach to
investing, General Atlantic will provide significant support to
advise iFormation Group and its partner companies in the areas of
private equity investing, information technology, and the Internet. 
Goldman Sachs, through its extensive global presence, will assist
iFormation Group with a range of strategic and financial matters.
About The Boston Consulting Group
   The Boston Consulting Group (BCG) is a global leader in business
strategy consulting. With forty-seven offices worldwide, BCG advises
corporations in every global market and industry. Its professionals
have deep managerial and business expertise across a wide spectrum of
industries and functional areas.  In recent years, BCG has also
established a lead position among consulting companies in the field
of e-commerce.  In a recent study by Forrester Research, BCG received
the highest overall score among major e-business consulting firms for
its ability to help meet clients' e-commerce needs.  The firm's
e-commerce practice is playing a lead role in some of the most
aggressive efforts by established companies to build Internet
businesses and is intimately familiar with the distinctive strategic
and operational challenges of integrating offline assets with online
markets.  For more information about BCG, visit its website at
www.bcg.com.
About General Atlantic Partners
   General Atlantic Partners focuses exclusively on investing in
global information-technology, Internet and Internet-enabled
businesses at all stages of development.  The firm has approximately
$10 billion in capital under management and $4 billion of capital
available for investment. General Atlantic has invested in over 80
companies, including E*Trade Group, Priceline.com, Proxicom, Belle
Systems and Exult.  The firm is unique in its global perspective on
information technology, its worldwide presence, its long-term
approach to investments, and its commitment to provide sustained
strategic assistance aimed at creating maximum value for its
portfolio companies.  The firm has offices in Greenwich, New York,
Reston, London, Singapore, Tokyo, Hong Kong and São Paulo.  For more
information about General Atlantic, visit its website at
www.gapartners.com.
About Goldman Sachs
   The Goldman Sachs Group is the world's premiere global investment,
banking, and securities firm.  Goldman provides a full range of
investing, advisory, and financing services worldwide to a
substantial and diversified client base, which includes corporations,
financial institutions, governments, and high-net-worth individuals.
Headquartered in New York, Goldman has forty-one offices in
twenty-three countries around the world.  For more information about
Goldman Sachs, visit its website at www.gs.com.
Contacts:
(1)Adam Weiner/Caroline Gentile         (2)Dieter Heuskel, Senior
Vice President
iFormation Group                        Boston Consulting Group
c/o Kekst und Co. 
001-212-521-4800                        0049-2 11-30 11-31 41 
adam-weiner@kekst.com                    heuskel.dieter@bcg.com 
caroline-gentile@kekst.com
www.iformationgroup.com           www.bcg.de

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