CMGI Cmgi (MM)

Optimized Product Configuration Enables NETGEAR to Further Improve Time to Market, Customer Satisfaction and Return on Investment ModusLink Corporation, a subsidiary of CMGI, Inc. (Nasdaq: CMGI), today announced that it has successfully implemented a new supply chain fulfillment model in Europe for NETGEAR, Inc. (Nasdaq: NTGR), a worldwide provider of technologically advanced, branded networking products. The new supply chain model leverages ModusLink's Optimized Product Configuration service, a highly-efficient and cost-effective fulfillment and configuration process designed to speed time to market, increase customer satisfaction, optimize sales potential and increase return on supply chain investment. Forecasting and meeting demand for consumer products in European markets can be extremely difficult given the multitude of different countries and languages of customers and this becomes even more challenging when companies, like NETGEAR, offer hundreds of customized products. ModusLink is able to reduce the complexities of European supply chain management for NETGEAR by postponing the customization, assembly and kitting for the final product until it reaches the local market. Additionally, transportation costs are reduced since more unfinished, bulk product can be shipped at one time. This supply chain model ensures that the right product is delivered to the right customers, without the need for costly rush orders, to improve the return on investment and increase customer satisfaction and loyalty. "NETGEAR is experiencing phenomenal growth and the ability to drive efficiency and flexibility through our supply chain enables us to sustain a competitive advantage in the marketplace," said Michael Falcon, Senior Vice President of Operations at NETGEAR. "ModusLink's infrastructure, extensive supply chain expertise and in-depth knowledge of the European market, enables our supply chain to operate smoothly. Customer service is a priority for NETGEAR and the new supply chain infrastructure implemented by ModusLink dramatically reduces the time it takes us to get product into the market, resulting in a positive experience for our customers." "The consumer networking market is fiercely competitive and industry leaders, like NETGEAR, require excellent planning and execution to optimize sales potential and contain costs," said Joseph C. Lawler, President and Chief Executive Officer of CMGI. "Today supply chain operating efficiency has become a strategic necessity and we are pleased that NETGEAR has chosen to leverage ModusLink's industry-leading solutions to streamline their supply chain infrastructure and sustain their competitive edge. We look forward to helping NETGEAR meet the demands of this high-growth industry for continued growth, success and customer loyalty." The solution ModusLink implemented for NETGEAR includes local sourcing and supply base management; configure-to-order product customization and final assembly; kitting and documentation management in four different languages; and fulfillment and distribution management. About ModusLink ModusLink Corporation is a leading provider of global supply chain management solutions. The company provides global technology clients in the software, hardware, consumer electronics, telecommunications and wireless markets with customized supply chain solutions that reduce risk and time to market and improve efficiency and productivity. ModusLink's services include demand planning, sourcing and procurement, manufacturing support, kitting and assembly, fulfillment, full-cycle logistics, systems integration and development, customer support and optimization consulting. Headquartered in Waltham, Massachusetts, ModusLink maintains 42 facilities in 13 countries. The company is a subsidiary of CMGI, Inc. (Nasdaq: CMGI). For additional information, see www.moduslink.com. About CMGI CMGI, Inc. (Nasdaq: CMGI), through its subsidiary ModusLink, provides industry-leading global supply chain management services and solutions that help businesses market, sell and distribute their products around the world. In addition, CMGI's venture capital business, @Ventures, invests in a variety of technology ventures. For additional information, see www.cmgi.com. This release contains forward-looking statements, which address a variety of subjects including, for example, the expected benefits of the service offerings described and of the relationship between ModusLink and NETGEAR. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: ModusLink's success depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of its products and services; ModusLink may not be able to expand its operations in accordance with its business strategy; ModusLink may experience difficulties integrating technologies, operations and personnel in accordance with its business strategy; ModusLink derives a significant portion of its revenue from a small number of customers and the loss of any of those customers would significantly damage its financial condition and results of operations; increased competition and technological changes in the markets in which ModusLink competes; and risks associated with international operations. ModusLink represents a significant percentage of CMGI's operations and the occurrence of any of the foregoing factors may have an adverse effect on CMGI's results of operations and financial results. For a detailed discussion of cautionary statements that may affect CMGI's future results of operations and financial results, please refer to CMGI's filings with the Securities and Exchange Commission, including CMGI's most recent Quarterly Report on Form 10-Q. Forward-looking statements represent management's current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us.