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ICG Announces Interest in Newly Combined Company of Creditex and CreditTrade
ICG Partner Company CreditTrade to Merge with Creditex
WAYNE, Pa. -- July 25, 2006 – Internet Capital Group, Inc. (Nasdaq:ICGE - News), today announced that its partner company, CreditTrade, Inc. has entered into a merger agreement with Creditex Group, Inc. The merger is subject to receipt of regulatory approvals and is expected to occur within 30 to 60 days. Upon the closing of the merger, ICG will acquire an interest in the combined company. Doug Alexander, Managing Director at ICG, will serve as a director of Creditex Group following this acquisition.
Following the merger, Creditex Group will be one of the largest credit derivatives platform companies in a market that has been growing 100% annually, topping $17 trillion in outstanding notional value in 2005. The combined company will have market-leading positions in the most strategic and rapidly growing sectors: European and North American indices, European and North American structured products, and single names and emerging markets. Creditex Group is projected to execute well over $2 trillion in notional credit derivative value in 2006 by providing a comprehensive voice, hybrid and electronic execution platform for the credit derivatives market.
"We welcome our new partner, ICG, and we look forward to leveraging the complementary strengths of Creditex and CreditTrade as a combined entity," said Sunil Hirani, CEO of Creditex Group. "The merger will allow us to pursue new opportunities and to continue serving this rapidly growing market in the most effective and innovative way."
"We are very enthusiastic about our future ownership interest in Creditex, and believe it will drive significant value for our shareholders," said Doug Alexander, Managing Director at Internet Capital Group. "The newly combined entity will bring together two strong leaders in the credit derivatives marketplace to create a leading on-demand credit derivatives execution and processing platform uniquely positioned to capture the significant opportunity in this rapidly growing market." |
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About Internet Capital Group
Internet Capital Group (www.internetcapital.com) owns and builds Internet software companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies that are delivering on-demand software and service applications to customers worldwide.
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About CreditTrade
CreditTrade provides leading transaction, data and information services to the credit markets. From offices in London, Singapore and New York, CreditTrade covers the major credit markets around the world. CreditTrade is active in a broad range of markets including loans, credit derivatives and asset-backed securities. Clients include major investment and commercial banks as well as many of the world's other leading financial institutions.
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About Creditex Group
Creditex Group is the global market leader in e-trading of credit derivatives. The first e-trading platform in credit derivatives, Creditex is used by more than 800 credit derivatives traders at the world's top financial institutions. The platform has electronically executed just under $1 trillion notional in credit default swap (CDS) indices, single-name CDS and standardized structured credit products.
In 2005, Creditex pioneered the first Tradable Credit Fixings, a milestone in bringing additional confidence and transparency to the market by providing a standard benchmark and settlement rate. The firm is also leading the industry in "straight-through processing" initiatives, allowing its growing client base to reduce operational risk and transaction costs. Having received numerous accolades in leading financial media including Credit, Euromoney, Forbes, Institutional Investor, Risk and, most recently, winning the IFR Innovation of the Year Award for pioneering the Credit Event Fixings, Creditex's technology continues to set the standard for innovation in the credit derivatives market. For more information about Creditex, see www.creditex.com.
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Safe Harbor Statement under Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future performance of our partner companies, acquisitions or dispositions of interests in partner companies, the effect of economic conditions generally, capital spending by customers and development of the e-commerce and information technology markets, and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.
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