Ask Jeeves Adopts Stockholder Rights Plan

Apr 27, 2001, 01:00 ET from Ask Jeeves, Inc.

    EMERYVILLE, Calif., April 27 /PRNewswire/ --
 Ask Jeeves, Inc. (Nasdaq: ASKJ) announced today that on April 26, 2001 its
 board of directors adopted a Stockholder Rights Plan in which preferred stock
 purchase rights will be distributed as a dividend at the rate of one Right for
 each share of common stock of the Company held by stockholders of record as of
 the close of business on May 7, 2001. The Rights Plan is designed to assure
 stockholders fair value in the event of unsolicited takeover tactics,
 including the accumulation of shares in the open market or through private
 transactions and to prevent an acquirer from gaining control of the Company
 without offering a fair price to all of the Company's stockholders. The plan
 was not adopted in response to any attempts to acquire the company, and the
 company is not aware of any such efforts. The Rights will expire on
 May 7, 2011.
     Each Right will entitle stockholders to buy one unit of a share of
 preferred stock for $20.00. The Rights generally will be exercisable only if a
 person or group acquires beneficial ownership of 15 percent or more of the
 Company's common stock or commences a tender or exchange offer upon
 consummation of which such person or group would benefically own 15 percent or
 more of the Company's common stock.
     If any person becomes the beneficial owner of 15 percent or more of the
 Company's common stock, other than pursuant to a tender or exchange offer for
 all the outstanding shares of the Company approved by the Company's board of
 directors, then each Right not owned by a 15 percent-or-more stockholder or
 related parties will entitle its holder to purchase, at the Right's then
 current exercise price, shares of the Company's common stock (or, in certain
 circumstances as determined by the board, cash, other property, or other
 securities) having a value of twice the Right's then current exercise price.
 In addition, after any person has become a 15 percent-or-more stockholder, if
 the Company is involved in a merger or other business combination transaction
 with another person in which the Company does not survive or in which its
 common stock is changed or exchanged, or sells 50 percent or more of its
 assets or earning power to another person, each Right will entitle each
 holder, other than any person who has become a 15 percent-or-more stockholder,
 to purchase, at the Right's then current exercise price, shares of common
 stock of such other person having a value of twice the Right's then current
 exercise price.
     The Company will generally be entitled to redeem the Rights at $0.01 per
 Right at any time until 10 days (subject to extension) after a public
 announcement that a 15 percent position in the Company's common stock has been
 acquired.
     The Rights are intended to enable all stockholders to realize the
 long-term value of their investment in the Company. The Rights will not
 prevent a takeover attempt, but should encourage anyone seeking to acquire the
 Company to negotiate with the board prior to attempting to takeover.
     Details of the Stockholder Rights Plan will be outlined in filing with the
 Securities and Exchange Commission and in a letter than will be mailed to
 stockholders as of the record date.
 
     About Ask Jeeves, Inc.
     Ask Jeeves is a leading provider of intuitive, intelligent question
 answering technologies and services. Ask Jeeves' solutions enable companies to
 convert online shoppers to buyers, reduce support costs, understand customer
 preferences and improve customer retention. Ask Jeeves also syndicates its
 solutions to portals, infomediaries, and content and destination sites to help
 companies increase e-commerce and advertising revenue. For more information,
 visit http://www.ask.com or call 510-985-7400.
 
     NOTE:  Ask Jeeves is a registered service mark of Ask Jeeves, Inc. Jeeves
 Relevant Answers, Jeeves Answers, Jeeves Insight, Ask Jeeves for Kids and
 Ask.com are service marks of Ask Jeeves, Inc. All other marks are those of
 their respective owners.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X28663314
 
 

SOURCE Ask Jeeves, Inc.
    EMERYVILLE, Calif., April 27 /PRNewswire/ --
 Ask Jeeves, Inc. (Nasdaq: ASKJ) announced today that on April 26, 2001 its
 board of directors adopted a Stockholder Rights Plan in which preferred stock
 purchase rights will be distributed as a dividend at the rate of one Right for
 each share of common stock of the Company held by stockholders of record as of
 the close of business on May 7, 2001. The Rights Plan is designed to assure
 stockholders fair value in the event of unsolicited takeover tactics,
 including the accumulation of shares in the open market or through private
 transactions and to prevent an acquirer from gaining control of the Company
 without offering a fair price to all of the Company's stockholders. The plan
 was not adopted in response to any attempts to acquire the company, and the
 company is not aware of any such efforts. The Rights will expire on
 May 7, 2011.
     Each Right will entitle stockholders to buy one unit of a share of
 preferred stock for $20.00. The Rights generally will be exercisable only if a
 person or group acquires beneficial ownership of 15 percent or more of the
 Company's common stock or commences a tender or exchange offer upon
 consummation of which such person or group would benefically own 15 percent or
 more of the Company's common stock.
     If any person becomes the beneficial owner of 15 percent or more of the
 Company's common stock, other than pursuant to a tender or exchange offer for
 all the outstanding shares of the Company approved by the Company's board of
 directors, then each Right not owned by a 15 percent-or-more stockholder or
 related parties will entitle its holder to purchase, at the Right's then
 current exercise price, shares of the Company's common stock (or, in certain
 circumstances as determined by the board, cash, other property, or other
 securities) having a value of twice the Right's then current exercise price.
 In addition, after any person has become a 15 percent-or-more stockholder, if
 the Company is involved in a merger or other business combination transaction
 with another person in which the Company does not survive or in which its
 common stock is changed or exchanged, or sells 50 percent or more of its
 assets or earning power to another person, each Right will entitle each
 holder, other than any person who has become a 15 percent-or-more stockholder,
 to purchase, at the Right's then current exercise price, shares of common
 stock of such other person having a value of twice the Right's then current
 exercise price.
     The Company will generally be entitled to redeem the Rights at $0.01 per
 Right at any time until 10 days (subject to extension) after a public
 announcement that a 15 percent position in the Company's common stock has been
 acquired.
     The Rights are intended to enable all stockholders to realize the
 long-term value of their investment in the Company. The Rights will not
 prevent a takeover attempt, but should encourage anyone seeking to acquire the
 Company to negotiate with the board prior to attempting to takeover.
     Details of the Stockholder Rights Plan will be outlined in filing with the
 Securities and Exchange Commission and in a letter than will be mailed to
 stockholders as of the record date.
 
     About Ask Jeeves, Inc.
     Ask Jeeves is a leading provider of intuitive, intelligent question
 answering technologies and services. Ask Jeeves' solutions enable companies to
 convert online shoppers to buyers, reduce support costs, understand customer
 preferences and improve customer retention. Ask Jeeves also syndicates its
 solutions to portals, infomediaries, and content and destination sites to help
 companies increase e-commerce and advertising revenue. For more information,
 visit http://www.ask.com or call 510-985-7400.
 
     NOTE:  Ask Jeeves is a registered service mark of Ask Jeeves, Inc. Jeeves
 Relevant Answers, Jeeves Answers, Jeeves Insight, Ask Jeeves for Kids and
 Ask.com are service marks of Ask Jeeves, Inc. All other marks are those of
 their respective owners.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X28663314
 
 SOURCE  Ask Jeeves, Inc.