Quixtar Inc. Creates A New Business Model For The Internet Using Intel™-Architecture Based Servers

Quixtar's e-Commerce Site Serves a Growing Network of Independent Distributors and Business Owners Posting Sales of More than $250 Million in its First 200 Days

SANTA CLARA, Calif., Oct. 13, 2000 - Intel Corporation announced today that Quixtar Inc is running its e-Commerce site on Intel™ Architecture-based servers. Powered by approximately 75 two- and four-way servers based on Intel™ Pentium™ III Xeon™ processors, the Quixtar.com site allows affiliated Independent Business Owners (IBOs), and the members and clients they've registered, place orders for products.

Launched Sept. 1, 1999, Quixtar is a sister company to Amway Corp., the direct selling giant founded by Rich DeVos and Jay Van Andel forty years earlier. Although Amway had been online for years, the company's owners decided a new business model would be the best way to capitalize on the growing power of the Internet. In 1999, they formed Quixtar Inc., an independent, privately-held company tasked with creating a new business for the Internet. In its first 200 days, Quixtar posted sales of more than $250 million.

"The Quixtar business model empowers people to benefit from the Web as a shopping vehicle and as a business that can help them achieve their personal financial goals," said Ken McDonald, managing director of Quixtar. "Quixtar combines the high-touch approach of our IBOs with the high-tech service available at the Quixtar Web site. The IBOs really are the competitive advantage for Quixtar in the online space, enabling us to direct our marketing dollars where they're most effective."

Speed of Deployment and Scalability Drive Choice
The technical development of Quixtar happened very quickly in the spring and summer of 1999, helping the company achieve its goal of a Sept. 1 launch. The decision to standardize around Intel Architecture servers and compatible solutions made the effort possible-in large part because of access to development tools, applications and developer talent. "The Intel Architecture is an attractive environment for development, and we had a fair amount of Microsoft* developer talent already on staff. That really helped us move quickly," says Randy Bancino, vice president and chief information officer at Quixtar. "Not only did we create a Web site, we created a brand new business model."

In effect, Quixtar has set out to enable literally millions of new Web-based e-Business ventures, using its own Web site and Web-based services as the driver. Quixtar-affiliated IBOs register online at www.quixtar.com, enabling them to market and sell its products to clients and build their businesses further by registering others as members or IBOs. They also use the site to check order status and account information, managing their businesses online using Quixtar's Virtual Office. IBOs can access a heads-down order entry form that allows them to quickly place orders for their clients.

"This is a great example of a consumer company moving from traditional pencil and paper to e-Business. By using versatile and scalable Intel-architecture based servers, Quixtar can enhance their affiliated business owners' ability to grow their business, without losing the personal touch," said Sean Maloney, senior vice president and director, Intel Sales and Marketing Group.

For more information about how Quixtar and other companies are building their e-Business infrastructures on Intel solutions, please visit www.intel.com/eBusiness.

* Other names and brands may be claimed as the property of others.