ModusLink Expands Supply Chain Services to Universal Electronics

ModusLink® Corporation, a subsidiary of CMGI®, Inc. (NASDAQ: CMGI) and leading provider of global supply chain management solutions, today announced the expansion of its relationship with Universal Electronics Inc. (NASDAQ: UEIC) the global leader in wireless control technology. ModusLink’s business with UEI continues to grow since it began providing services to UEI less than one year ago. UEI plans to utilize ModusLink’s Nashville, Tenn. and Guadalajara, Mexico solution centers to manage the increase in volume, while simultaneously reducing expected turnaround time from one week to one to two days. As part of the expanded program with UEI, ModusLink is also unveiling the completion of a new environmentally controlled production area within its Nashville Solution Center to accommodate the configuration service requirements of clients, such as UEI. As part of its Optimized Configuration Solution, ModusLink executes a number of product configuration services for UEI, including pad printing, carrier branding and content loading. These services require specific environmental controls to expedite assembly and ensure the highest levels of quality for final products. The controlled environment was developed to further enhance these product configuration activities, improving time-to-market and end-customer satisfaction for UEI. ModusLink’s Optimized Configuration Solution is designed to enable UEI to more closely match production to actual demand, minimize inventory excess and obsolescence and improve turnaround time by as much as 85 percent. "The positive results of our partnership with ModusLink made the decision to expand the relationship an easy one,” said Dann Vidaña, vice president of operations for Universal Electronics. "The demand for our products is rising as our business expands. During this growth, it is imperative to maintain the highest levels of quality and customer satisfaction. The launch of the new configuration facility in Nashville will ensure we continue to meet these standards, while further improving time-to-market for our products. ModusLink understands our business and its expertise has helped us to become even more agile in meeting our customers’ needs.” Mr. Vidaña represented UEI recently at a ribbon-cutting ceremony to celebrate the expanded relationship and official opening of the new controlled production area. The ceremony took place at ModusLink’s Nashville, Tenn. Solution Center, and was hosted by Mark Kelly, ModusLink, president of Americas Business Unit. "We are pleased that we have been able to help Universal Electronics meet their business goals during this time of rapid growth,” said Kelly. "ModusLink is committed to delivering innovative solutions and processes that help its clients increase the value of their supply chain operations. Supply chain flexibility is increasingly becoming a competitive advantage and the ability to keep operations running optimally during times of rapid growth, is a critical differentiator. We look forward to expanding our relationship with Universal Electronics and enabling the company to meet the needs of its growing customer base.” About ModusLink ModusLink Corporation is a leading provider of global, end-to-end supply chain management solutions. The company provides technology clients in the software, computing, consumer electronics, storage and communications markets with customized supply chain solutions that improve time-to-market, productivity and customer satisfaction while reducing risk and cost. ModusLink's services include consulting and planning, sourcing and supply base management, manufacturing and product configuration, fulfillment, logistics management, e-commerce and the complete range of aftermarket services. ModusLink has 34 facilities in 13 countries, creating the largest global footprint in the industry. With headquarters in Waltham, Massachusetts, the company is a subsidiary of CMGI, Inc. (NASDAQ: CMGI). For additional information, visit www.moduslink.com. About CMGI CMGI, Inc. (NASDAQ: CMGI), through its subsidiary ModusLink, provides industry-leading global supply chain management services and solutions that help businesses market, sell and distribute their products around the world. In addition, CMGI’s venture capital business, @Ventures, invests in a variety of technology ventures. For additional information, visit www.cmgi.com. About Universal Electronics Inc. Founded in 1986, Universal Electronics Inc. (UEI) is the global leader in wireless control technology for the connected home. UEI designs, develops, and delivers innovative solutions that enable consumers to control entertainment devices, digital media, and home systems. The company’s broad portfolio of patented technologies and database of infrared control software have been adopted by many Fortune 500 companies in the consumer electronics, subscription broadcast, and computing industries. UEI sells and licenses wireless control products through distributors and retailers under the One For All® brand name. UEI also delivers complete home control solutions in the professional custom installation market under the brand name Nevo®, as well as software solutions for digital media control and enjoyment in the consumer and OEM markets under the brand SimpleCenter™. This release contains forward-looking statements, which address a variety of subjects including, for example, the expected benefits of the relationship between ModusLink and Universal Electronics Inc. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: ModusLink is not designated as this client’s sole supplier of the services referenced in this press release; ModusLink frequently sells to its supply chain management clients, including the client referenced in this press release, on a purchase order basis and therefore its sales are subject to demand variability; ModusLink's success depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of its solutions and services; ModusLink may not be able to expand its operations in accordance with its business strategy; ModusLink may experience difficulties integrating technologies, operations and personnel in accordance with its business strategy; ModusLink derives a significant portion of its revenue from a small number of customers and the loss of any of those customers would significantly damage its financial condition and results of operations; increased competition and technological changes in the markets in which ModusLink competes; and risks associated with international operations. ModusLink represents a significant percentage of CMGI's operations and the occurrence of any of the foregoing factors may have an adverse effect on CMGI’s results of operations and financial results. For a detailed discussion of cautionary statements that may affect CMGI's future results of operations and financial results, please refer to CMGI's filings with the Securities and Exchange Commission, including CMGI's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements represent management's current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us. ModusLink is a registered trademark of ModusLink Corp. and CMGI is a registered trademark of CMGI, Inc. All other company names and products are trademarks or registered trademarks of their respective companies.