The terms of the termination, including mutual releases between the parties, are set forth in a Termination Agreement executed today. Pursuant to the Termination Agreement, Cyberian Outpost has repaid PC Connection in full all amounts due under the terminated credit facility. PC Connection will withdraw the registration statement previously filed with the Securities and Exchange Commission related to the now-terminated merger proposal.
As the parties previously announced on August 22, 2001, Cyberian Outpost had informed PC Connection that it may not be able to fulfill the net worth condition in the Merger Agreement, and PC Connection had determined that it would not waive that condition.
