Exchange.com Plans Network of Vertical E-Commerce Sites

Cambridge, MA-based Exchange.com, formerly e-Niche Inc., said
it plans to launch a family of highly vertical online marketplaces, and to
that end has acquired Bibliofind, a rare and antique book Web
site.

The company is also developing MusicFile, a destination site for hard-to-find
and vintage music. That site is scheduled to launch in April.

These new marketplaces provide full-service e-commerce solutions for both
buyers and sellers within the untapped secondary market for used, hard-to-find
and collector items in
special-interest categories, the company said.

In addition, Exchange.com closed a $10 million second round of private
financing from Polaris Venture Partners, Accel Partners and The Washington
Post Co. . The company also said it appointed several key industry leaders to
its board of directors and advisory council, including Lotus Corp. founder
Mitch Kapor.

“In traditional settings, buying and selling hard-to-find items is costly and
time consuming, if not impossible,” said Stig Leschly, Exchange.com founder
and CEO. “Buyers can’t find the items and information they want quickly and
easily, and sellers can’t find customers cost-effectively on their own. These
two groups are desperate
to get together.”

Each Exchange.com site will offer sellers full e-commerce solutions including
the ability to mass upload inventory, list items for sale, run auctions and
customize
their own payment, shipping and return policies. Exchange.com derives revenues
from a fee paid by the sellers and dealers. The company said it plans to
expand into similar vertical markets for hard-to-find and collector items in
1999.

Bibliofind, which was founded in 1994 by Michael and Helen Selzer in an
attempt to increase sales at their antiquarian bookstore. Now it has an
inventory of more than 9 million titles from thousands of dealers worldwide.
Financial details of the acquisition were not disclosed.

Meanwhile, Ralph Terkowitz of the Washington Post Co. was appointed a director
and joins current board members Stig Leschly, founder and CEO, and George
Conrades, Polaris Venture Partners.

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