linkdatax.com

After scrapping their IPO yesterday, citing poor market conditions, Mercata, a provider of Internet-based group buying services, today announced that it will cease operations as of January 31, 2001.

According to a release issued this morning, the Company has been unable to attract further private investment following the failed IPO.

"Mercata has performed extremely well as a company despite the difficult economic environment," said Tom Van Horn, founder, president and CEO of Mercata, Inc. "We have consistently met or exceeded the goals that we have set for ourselves and against which investors measure our performance."

In August of 2000, Mercata was granted the first patent covering group buying business methods and technology.

Mercata has 16 additional patents pending on its proprietary business methods and related technology.

In addition to its consumer destination site Mercata.com, launched in May of 1999, the company also built a platform business.

"The entire Mercata team is extremely proud of its success in creating innovative intellectual property and proprietary technology," said Van Horn. "Despite market conditions, we believe that our team demonstrated both tremendous innovation and superior execution."

Mercata.com will be accepting orders until January 31, 2001 and accepting returns if they are postmarked by January 20, 2001.

Update: In an exclusive interview this afternoon, Van Horn told seattle.internet.com that he is very proud of Mercata's achievements. "We have achieved and over-achieved our key goals," says Van Horne.

According to Van Horn, if it weren't for the tough and harsh funding conditions that currently exist for e-commerce companies, he believes that Mercata would have continued to be successful.

Van Horn also has no doubt that the methods and technologies that were pioneered by Mercata for group buying will continue to play a role in the Industry.

As regard immediate long-term plans, Van Horn says that his focus is on the short-term project of winding down the company.

He has already received several calls and emails showing support from both customers and employees. Van Horn says that he has enjoyed working with his team of some 100+ employees. "They are some of the most creative and hard working people in the Industry. I'd like to also thank our great customers".