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2000.10.06. - Patrice Riemens, Amsterdam Digital City stops providing

Subject: Amsterdam Digital City stops providing content services
From: Patrice Riemens
Date: Fri, 6 Oct 2000 14:32:11 +0200 (CEST)

Q&D Translation of the Press Release by Joost Flint, Director, Digital City
Holding Pvt. Ltd. Dated Oct 5, 2K (original text in Dutch:


Press Release

Amsterdam, October 5, 2000

The Digital City decides to terminate its content providing activities.

The Digital City Holding Pvt Ltd (DDS) has decided to terminate the editorial activities performed through its subsidiary DDS CITY Ltd.

Over this past half year, there has been a dramatic shift in the investing climate concerning 'business to consumer' (B2C) Internet companies. At the moment, activities that are taking place in the subsidiary DDS CITY are showing a loss, and with no fresh investor money forthcoming, they must be curtailed. Therefore, the current employement contracts of the three editors are being de-scaled. Their editing activities, among which putting together the daily DDS newsbulletin, will cease as per December 1, 2000.

'DDS CITY' shelters all semi-public activities of the DDS Holding: The 'City' itself, with its many 'inhabitants', their mailboxes, homepages, etc.; and the culture and innovation linked DDS projects as well as the broadcast experiments.

At present, the activities of DDS CITY are entirely cross-subsidised by the revenues of the other subsidiaries of DDS Holding Pvt Ltd. Reasons of sound corporate economics prevents them from doing so indefinitely. Within a fairly short term from now, it will be necessary for the Company to undertake and implement a comprehensive review of its policies regarding the Digital City.

DDS Holding Pvt Ltd has 4 subsidiaries within different ranges of activities: DDS Services Ltd; DDS Projects Ltd; DDS City Ltd, and DDS Venture Ltd. The decisions outlined in this press release exclusively concern the activities of DDS City Ltd.