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Harris Interactive and Total Research to Merge

August 9 2001

News has just been released that Harris Interactive Inc. and Total Research Corporation are to merge, forming one of the world's largest research companies. The two companies expect to report approximately US$115 million in combined revenues for their 2001 fiscal years.

Following the merger, Total Research will become a wholly owned subsidiary of Harris Interactive and, initially, will continue to operate under its existing name in the United States and Europe. The combined company will have approximately 1,000 full-time employees, and its stock will trade under the Nasdaq symbol HPOL.

The company will be managed by a newly created Office of the Chairman with Dr. Gordon S. Black, currently chairman and CEO of Harris Interactive, continuing in this role. David H. Clemm, currently president and COO of Harris Interactive, will become vice chairman for global operations and Internet research development, while Al Angrisani, currently president and CEO of Total Research, will become president and COO of the merged firm.

Among other growth initiatives, the combined company will focus on demonstrating the effectiveness of Harris Interactive's online polling and research capabilities. During the past two years, the company has been able to transition much of its traditional research business to online methodology. Its total Internet-based revenues have increased 55% over 2000. These revenues are expected to grow by about 78% to some US$400 million during 2001, making it the fastest growing segment of the market research industry.

The new combined company will have a strong presence in several of the fast-growing industries that dominate research services. These include healthcare and pharmaceuticals, which are expected to account for approximately US$30 million in combined revenues in 2002, and information technology, expected to account for approximately US$25 million. The merged company should also retain much of its customer loyalty and retention practices, with expected 2002 revenues of nearly US$25 million.

Dr. Black of Harris Interactive commented, "Total Research is a respected leader in market research that shares our vision for the future of the industry. Harris Interactive will benefit from the addition of the management and operating resources of Total Research, while significantly expanding the market for our entire portfolio of research services, both in the US and in Europe. Al Angrisani will focus on creating profitability and expanding revenues in our combined operations. We expect this arrangement to have a positive effect on our profitability and we continue to expect the combined Harris Interactive to reach cash flow breakeven by December 2001."

Al Angrisani of Total Research added "The combination of Total Research and Harris Interactive creates a powerful new business model in the market research industry. Total's profitable custom research business, recognised for its advanced analytics and methodologies, combined with Harris Interactive's consultative approach and robust data collection capabilities will create a potent force in the industry. Over the past two years, we have worked with Harris Interactive and have witnessed first-hand the enhanced cost efficiencies, speed and productivity advantages provided by Internet-based surveying."

Looking to the future, a key initiative of the combined company will be to expand its international markets by building databases of co-operative research panels in Europe and Japan. "Internet penetration around the world is reaching critical mass and our clients are now asking us to perform research in other countries and cultures," David Clemm of Harris Interactive commented. "(This) has already built a European base of operations that is expected to account for approximately US$22 million of the company's most recent fiscal year revenues. Together, North America, Europe and Japan represent about 90% of all research revenues in the world."


All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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