marchFIRST Files for Relief Under Chapter 11 of Federal Bankruptcy Code

Apr 12, 2001, 01:00 ET from marchFIRST, Inc.

    CHICAGO, April 12 /PRNewswire/ -- marchFIRST, Inc. (Nasdaq:   MRCH)
 announced that today it and its domestic subsidiaries and affiliates filed for
 relief under Chapter 11 of the Federal Bankruptcy Code.  The Chapter 11 filing
 is expected to provide the Company with the time to complete the orderly
 liquidation of its domestic business units and core assets and to maximize
 their value.  This action is consistent with the Company's prior public
 disclosure of the Company's general inability to satisfy creditor obligations
 as they become due, liquidity shortfalls and less than necessary cash
 reserves.  The Company also filed a Chapter 11 plan that essentially provides
 for distribution of any cash proceeds received by the Company to creditors
 and, if creditors have been fully paid, to holders of the Company's preferred
 stock and then holders of its common stock.  However, at this time it is
 unlikely that any proceeds will remain for distribution to holders of the
 Company's common stock.  The Company intends to commence the plan confirmation
 process shortly.  The Company intends to work closely with creditors to
 recover on all available assets and maximize their value.  The Company's
 European business units were not included  as part of the Chapter 11 filing.
     The Company also announced that today, following the receipt of anti-trust
 approval, it completed the sale of its SAP practice, VAR business and other
 assets, (including its interest in BlueVector) to divine, inc., pursuant to
 the agreement described in the Company's news release on April 2, 2001.  As
 previously disclosed, the purchase price for these business units and assets
 was $6.25 million at closing, an additional $29.75 million note payable over
 not more than five years and up to an additional $16 million payable over five
 years which is contingent on the units' future performance.  As described in
 its April 2, 2001 news release, the Company previously completed an initial
 transaction with divine, selling divine its Central Region business unit in
 exchange for $6.25 million at closing, an additional $27.75 million note
 payable over not more than five years, and up to an additional $39 million
 payable over five years which is contingent on the units' future performance.
     The Company has also completed the sale of certain other business units,
 including McKinney & Silver, Inc. and the Company's Salt Lake City office.
 The aggregate purchase price for these business units was approximately
 $13.6 million and the assumption of liabilities of approximately
 $17.0 million.  The Company continues to be in active discussions for the sale
 of other domestic and foreign business units.  The European business units are
 currently expected to continue to operate in the ordinary course of business.
     In addition, the Company announced that it does not intend to file with
 the SEC an Annual Report on Form 10-K for the year ended December 31, 2000
 and, for this and other reasons, believes its stock will be delisted from
 trading on the Nasdaq National Market.
 
     Cautionary Note Regarding Forward-Looking Statements.
     This news release contains forward-looking statements that reflect
 marchFIRST's current expectations about its future results, performance,
 prospects and opportunities.  marchFIRST has tried to identify these forward-
 looking statements by using words such as "believe," "expect," "anticipate,"
 "intend," and similar expressions.  These forward-looking statements are
 subject to a number of risks, uncertainties and other factors that could cause
 marchFIRST's actual results, performance, financial condition, prospects or
 opportunities to differ materially from those expressed in, or implied by,
 these forward-looking statements.  These risks, uncertainties and other
 factors include, but are not limited to, marchFIRST's ability to complete the
 orderly liquidation of its business units and core assets and pay its
 creditors, pursuant to its Chapter 11 plan.  For further information other
 such risks, uncertainties and factors, please review the disclosure included
 under the caption "Risk Factors" in marchFIRST's Quarterly Report on Form 10-Q
 for the period ended September 30, 2000 and Annual Report on Form 10-K for the
 year ended December 31, 1999, as filed with the Securities and Exchange
 Commission.  marchFIRST undertakes no obligation to update or revise any
 forward-looking statements, whether as a result of new information, future
 events or changed circumstances or for any other reason.
 
 

SOURCE marchFIRST, Inc.
    CHICAGO, April 12 /PRNewswire/ -- marchFIRST, Inc. (Nasdaq:   MRCH)
 announced that today it and its domestic subsidiaries and affiliates filed for
 relief under Chapter 11 of the Federal Bankruptcy Code.  The Chapter 11 filing
 is expected to provide the Company with the time to complete the orderly
 liquidation of its domestic business units and core assets and to maximize
 their value.  This action is consistent with the Company's prior public
 disclosure of the Company's general inability to satisfy creditor obligations
 as they become due, liquidity shortfalls and less than necessary cash
 reserves.  The Company also filed a Chapter 11 plan that essentially provides
 for distribution of any cash proceeds received by the Company to creditors
 and, if creditors have been fully paid, to holders of the Company's preferred
 stock and then holders of its common stock.  However, at this time it is
 unlikely that any proceeds will remain for distribution to holders of the
 Company's common stock.  The Company intends to commence the plan confirmation
 process shortly.  The Company intends to work closely with creditors to
 recover on all available assets and maximize their value.  The Company's
 European business units were not included  as part of the Chapter 11 filing.
     The Company also announced that today, following the receipt of anti-trust
 approval, it completed the sale of its SAP practice, VAR business and other
 assets, (including its interest in BlueVector) to divine, inc., pursuant to
 the agreement described in the Company's news release on April 2, 2001.  As
 previously disclosed, the purchase price for these business units and assets
 was $6.25 million at closing, an additional $29.75 million note payable over
 not more than five years and up to an additional $16 million payable over five
 years which is contingent on the units' future performance.  As described in
 its April 2, 2001 news release, the Company previously completed an initial
 transaction with divine, selling divine its Central Region business unit in
 exchange for $6.25 million at closing, an additional $27.75 million note
 payable over not more than five years, and up to an additional $39 million
 payable over five years which is contingent on the units' future performance.
     The Company has also completed the sale of certain other business units,
 including McKinney & Silver, Inc. and the Company's Salt Lake City office.
 The aggregate purchase price for these business units was approximately
 $13.6 million and the assumption of liabilities of approximately
 $17.0 million.  The Company continues to be in active discussions for the sale
 of other domestic and foreign business units.  The European business units are
 currently expected to continue to operate in the ordinary course of business.
     In addition, the Company announced that it does not intend to file with
 the SEC an Annual Report on Form 10-K for the year ended December 31, 2000
 and, for this and other reasons, believes its stock will be delisted from
 trading on the Nasdaq National Market.
 
     Cautionary Note Regarding Forward-Looking Statements.
     This news release contains forward-looking statements that reflect
 marchFIRST's current expectations about its future results, performance,
 prospects and opportunities.  marchFIRST has tried to identify these forward-
 looking statements by using words such as "believe," "expect," "anticipate,"
 "intend," and similar expressions.  These forward-looking statements are
 subject to a number of risks, uncertainties and other factors that could cause
 marchFIRST's actual results, performance, financial condition, prospects or
 opportunities to differ materially from those expressed in, or implied by,
 these forward-looking statements.  These risks, uncertainties and other
 factors include, but are not limited to, marchFIRST's ability to complete the
 orderly liquidation of its business units and core assets and pay its
 creditors, pursuant to its Chapter 11 plan.  For further information other
 such risks, uncertainties and factors, please review the disclosure included
 under the caption "Risk Factors" in marchFIRST's Quarterly Report on Form 10-Q
 for the period ended September 30, 2000 and Annual Report on Form 10-K for the
 year ended December 31, 1999, as filed with the Securities and Exchange
 Commission.  marchFIRST undertakes no obligation to update or revise any
 forward-looking statements, whether as a result of new information, future
 events or changed circumstances or for any other reason.
 
 SOURCE  marchFIRST, Inc.