I-SHOP PROXICOM FAVORS OFFER FROM DIMENSION DATA

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(May 10, 2001) -- Dimension Data Holdings, South Africa, which has upped the offer made by Compaq Computer Corp. to acquire all the shares of Proxicom, now says the Reston, Va.-based i-shop has informed Compaq it favors Dimension's offer. Compaq has until Monday to make a counteroffer.

Dimension Data is offering $7.50 per share, 30% higher than the offer made by Compaq on April 26. It values Proxicom equity at $448 million or a transaction value of $376 million, taking into account cash on the balance sheet of $72 million. With the proposed purchase of Proxicom, Dimension hopes to expand its networking and managed services offerings into U.S. by adding e-business strategy, consulting and integration. -- Adrienne Mand

Copyright May 2001, Crain Communications Inc.

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