NetObjects goes out of business

REDWOOD CITY: Struggling software maker NetObjects Inc., 48 per cent owned by

International Business Machines Corp. Inc., said it had shut down operations and

would sell its assets as quickly as possible.

The Saturday announcement ends the downward spiral the Redwood City,

California-based company has been riding for the past few months. Two weeks ago,

NetObjects said it would not have enough cash to continue operating past Sept.

30 and hired merger and acquisition advisor Broadview International to explore

strategic alternatives.

On Friday, the company - maker of software to enable users to build and

manage Web sites - said it would be delisted from the Nasdaq after having failed

to meet the exchange’s $1 minimum requirement.

At the end of its third quarter, NetObjects said it had $4.4 million in cash

and cash equivalents remaining, and that its liabilities of $7.8 million

exceeded its assets of $6.6 million.

NetObjects shares, which hit a high of $45.69 last March traded at 28 cents a

share when it announced its delisting.

(C) Reuters Limited 2001.