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PurchasePro Chief Resigns

June 18, 2001

LAS VEGAS (AP) _ Ailing software company PurchasePro.com Inc. said Monday its president resigned and it will lay off another 200 workers.

Shawn McGhee, PurchasePro’s president for the past few months, will leave the company June 30. A company spokesman declined to elaborate on McGhee’s resignation, which the company called part of ``sweeping and significant″ changes to PurchasePro’s strategy, senior management and employee base.

The most recent staff reductions will cut PurchasePro’s work force to fewer than 300. The company had laid off 103 employees in May. At its peak, the Las Vegas-based company employed about 600 workers.

``Our most immediate task, with our vision and strategy in place, is clear: The rebuilding of PurchasePro’s credibility and with it, the company’s financial stability,″ said Richard Clemmer, PurchasePro’s newly appointed chief executive.

PurchasePro develops programs to let business buy and sell products on the Internet.

Clemmer, a former chief financial officer of Quantum Corp., became PurchasePro chief financial officer last month. He had been elevated to chief executive officer shortly after company founder Charles ``Junior″ Johnson, quit in late May. Johnson founded the company in 1996.

The company badly missed first quarter earnings estimates, and has been forced twice to revise its earnings downward.

Shares of PurchasePro were down 17 cents to close at $1.35 on the Nasdaq Stock Market, but rose 14 cents in extended trading to $1.49.


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