iPrint announced Monday that it will merge with privately held Wood Associates. Wood Associates is one of the leading suppliers of custom imprinted promotional items and marketing programs to the Fortune 1000. Wood has 19 offices nationwide and is headquartered in Santa Clara, California. The all stock combination is expected to close in the fourth quarter of 2001. Pro-forma revenue for the combined companies is expected to be $30 million for 2001 and over $100 million for 2002. iPrint anticipates break even results for operations before merger charges as early as Q4 2001, expected to be the first full quarter of combined operations. iPrint will issue securities to Wood Associates representing 49% of the combined organization. The combined organization will continue to be called iPrint Technologies and retain the Nasdaq symbol IPRT.

iPrint Technologies is a leading online printing technology and infrastructure provider. The company creates technology that improves the print-buying process. Customers include Oracle, PeopleSoft, 3M, OfficeMax, Microsoft, and Intel. Specifically, iPrint integrates e-print technology into enterprise e-procurement systems, streamlining the print-buying process, reducing costs, centralizing control and accountability, and improving the ROI associated with existing e-procurement investment.

Twice named as one of America's top 100 entrepreneurs aged 30 or under by the Association of Collegiate Entrepreneurs, Royal has also been included in the prestigious MicroTimes 100 List of Industry Leaders and been chosen as a winner of the San Jose Business Journal Entrepreneurial Awards, recognizing individuals that best exemplify the entrepreneurial spirit of Silicon Valley. Royal has authored articles in leading industry journals, including a series which ran monthly in MicroTimes. Royal received his B.S. and M.S. degrees in Industrial Engineering from Stanford University (1981 and 1983). He is a routine guest lecturer at both Stanford's Graduate School of Business and Graduate School of Law.

Farros on the merger with Wood Associates.

Royal, most companies are merging or partnering with firms in their same segment - technology and technology or consulting and consulting. How in the world did you and Monty Wood (CEO of Wood Associates) find each other?

Monty is the next door neighbor of one of our investors from Softbank. The investor told me several times that Monty and I should meet for lunch and get acquainted. Finally, we were able to get together and all the right words were said. The match is really great between the two companies and Monty is a great leader with a super business.

iPrint is an old company in “Internet years” having started in 1996. What does joining with an established “old economy” type company do for iPrint?

What impressed me most is the endurance of their business. They have been around since 1985 and have expanded in a very nice way. In fact, they are one of the largest promotional marketing companies in the country. Most of their customers have been clients with Wood for longer than iPrint has been in business.

With this deal, Wood gets the structure of a publicly traded company and all the advantages there and iPrint receives the infrastructure needed to grow at even a more rapid pace. Wood Associates has some two hundred Fortune 1000 customers like AOL, Schwab, and Compaq and they have over 15 years experience at finding the best sources for print work. They have sources for print in places most people have never heard of.

You mentioned in the release that there is no overlap in the executive area of the business. What about the overlap elsewhere?

There is very little. Monty’s team wanted what we had and we wanted what they had. Wood’s customers can look forward to very high end, automated ordering systems from some of the best technology available - which is what iPrint brings to the deal. Our customers get a well established sales force that can sell most any solution needed while nurturing the relationship. There are normal redundancies like administrative and back office type functions, but again, we anticipate very little overlap going forward.

How will the sales process work?