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Direct Insite Appoints Matthew Oakes Chief Executive Officer and Elects New Directors
SUNRISE, FL — (Marketwire) — 06/01/11 — Direct Insite Corp. (OTCBB: DIRI), a global SaaS provider of financial supply chain automation in support of accounts receivable and accounts payable business processes, today announced that Matthew E. Oakes has been appointed Chief Executive Officer. Mr. Oakes will also continue in his position as President. Mr. Oakes previously served as the Company's President and Chief Operating Officer and prior to that as Executive Vice President-Client Services. He joined Direct Insite in 2002 as Director of Business Operations, Quality Assurance, Contracts and Administration.
"I am gratified that our Chairman and Board have given me this opportunity to lead Direct Insite and welcome the challenge to fulfill their expectations in the growth of our company," said Mr. Oakes. "We have an exceptional team, the most competitive and innovative suite of products and services available anywhere, and a strong and growing list of clients. We are positioned to take advantage of the growing market for our services and anticipate strong revenue and earnings growth."
Mr. Michael Levin, who has served as a director of the Company since 2005, was appointed Chairman of the Board of Directors.
Commenting on the appointments Mr. Levin said, "Mr. Oakes has done an outstanding job as the President and Chief Operating Officer and I am delighted that he has accepted the role of Chief Executive Officer. Together with a talented and engaged group of new directors, we look forward to helping Direct Insite achieve its significant potential and delivering value to shareholders."
Also at the Annual Meeting of Shareholders held on May 25, 2011 the following directors were elected:
Michael Levin is Managing Director of Metropolitan Venture Partners Corp., a venture capital firm he co-founded in 1999. In his role as Managing Director, Mr. Levin negotiates and manages investments, as well as oversees the financial and operational management of the firm. Mr. Levin is also Chief Executive Officer of AsiaCrest Capital. He has also served as an active Board member and works closely with portfolio companies on strategic growth and ensuring proper fiscal discipline. Prior to MVP, Mr. Levin developed and managed hedge funds for the Man Group plc and Larry Hite. Mr. Levin was graduated Magna Cum Laude from The Wharton School at the University of Pennsylvania with a concentration in Finance. Mr. Levin has served as a director of the Company since 2005.
James A. Cannavino has been a director since March 2000. He formerly was Chairman and Chief Executive Officer since December 2002. From September of 1997 to April of 2000 he was the non-executive Chairman of SoftWorks, Inc. (a then wholly owned subsidiary of the Company), which went public and was later sold to EMC. Mr. Cannavino was also the Chief Executive Officer and Chairman of the Board of Directors of CyberSafe, Inc., a corporation specializing in network security from April 1998 to July 2001. In August, 1995, he was appointed as President and Chief Operating Officer of Perot Systems Corporation and in 1996 was elected to serve as Chief Executive Officer through July 1997. During his tenure at Perot he was responsible for all the day-to-day global operations of the company, as well as for strategy and organization. Prior to 1997 he served as a Senior Vice President at IBM for Strategy and Development. Mr. Cannavino held various positions at IBM for over thirty years beginning in 1963. Mr. Cannavino led IBM's restructuring of its $7 billion PC business to form the IBM PC Company. He also served on the IBM Corporate Executive Committee and Worldwide Management Council, and on the board of IBM's Integrated Services and Solutions Company. Mr. Cannavino presently serves on the Boards of the National Center for Missing and Exploited Children, the International Center for Missing and Exploited Children, and Verio. He recently was Chairman of the Board of Marist College in Poughkeepsie, New York and continues to serve on the board.
Craig W. Thomas. Mr. Thomas is a co-founder of Shareholder Advocates for Value Enhancement (S.A.V.E.) and a Managing Member of S.A.V.E. Partners III, LLC. He is also the founder of KC Trading Partners where he manages a portfolio of equity investments. Mr. Thomas served as Director of Research at S.A.C. Capital Advisors from 2007 to 2008 and was a Portfolio Manager at S.A.C. Capital Advisors from 2005 to 2007. Mr. Thomas was a Director at CR Intrinsic Investors, an affiliate of S.A.C. Capital Advisors, from 2004 to 2005, and he was a Research Analyst at S.A.C. Capital Advisors from 2003 to 2004. Prior to earning his MBA, Mr. Thomas was an Analyst at Goff Moore Strategic Partners and Rainwater, Inc. from 1999 to 2001 and an Associate at The Boston Consulting Group, Inc. from 1997 to 1999. Mr. Thomas is a former director of Laureate Education, Inc. Mr. Thomas earned his A.B. at Stanford University and earned his MBA from the Graduate School of Business at Stanford University. Mr. Thomas' background as an advocate for stockholders and improved corporate governance and his extensive experience as an investor in public companies and as a director will align the interests of the Board with those of the Company's stockholders and bring accountability and a seasoned investor-centered perspective to the Board.
Thomas C. Lund. Mr. Lund is the founder and Chief Executive Officer of Lund Capital Group, a private commercial real estate company that has holdings in various regions across the U.S. Prior to founding Lund Capital Group, Mr. Lund founded Customer Development Corporation ("CDC"), a company specializing in database management and marketing for financial institutions and other various companies around the world. Mr. Lund is widely known as a pioneer of database marketing. In 1987, CDC was honored by Inc. Magazine as the 8th fastest growing privately held company in the country. Mr. Lund, who is credited worldwide with many technical and creative innovations in the database marketing industry, also received the coveted "High-Tech Entrepreneur of the Year" award by Entrepreneur Magazine. Mr. Lund sold CDC in November of 1998. In addition to Mr. Lund's business interests, he and his wife are active philanthropists. Mr. Lund's entrepreneurial success as an industry pioneer in database marketing will be of value to the Board as it seeks to create a more entrepreneurial culture and invigorate sales and marketing efforts.
John J. Murabito. Mr. Murabito brings nearly thirty years of securities industry experience encompassing a broad array of functions, including as Chief Executive Officer, Chief Operating Officer and Chief Information Officer of US broker-dealers. From November 2001 through February 2011, Mr. Murabito was Chief Executive Officer of Hapoalim Securities USA, Inc. and its predecessor companies, including Investec (US) Inc., an affiliate of the Investec Group, an international banking group. In his role as CEO of Investec (US) Inc., Mr. Murabito oversaw a firm with approximately 1,000 employees and $1 billion of assets. Mr. Murabito successfully restructured the company's US operations, including the acquisition and disposition of businesses, to enhance stockholder value. In addition, as CEO of subsidiaries of publicly-traded companies in the UK, South Africa and Israel, he implemented structures to enhance corporate governance and controls. Mr. Murabito was a Managing Director in Information Technology at the National Securities Clearing Corporation and served as deputy CIO for this essential US securities industry clearing utility. Previously, Mr. Murabito was a general partner in the investment advisor Weiss Peck & Greer responsible for information technology and portfolio administration. Mr. Murabito spent ten years with the investment bank Dillon Read & Company, including as Chief Information Officer. Mr. Murabito earned an MBA from the Wharton School at the University of Pennsylvania. Mr. Murabito brings senior-level operating experience, hands-on restructuring skills and technology expertise that should contribute to the Board's efforts to formulate and execute plans for enhanced operating performance and the introduction of new products.
Philip Summe. Mr. Summe is the Portfolio Manager of Crossfields Capital Management, a firm he founded in 2005 that invests in small-cap, deep-value companies with selective activist involvement to facilitate the realization of stockholder value. In 2007, Mr. Summe was instrumental in founding Owners Research Group, a business focused on more effectively representing stockholder priorities to boards and management. From 2002 to 2004, Mr. Summe was a General Partner for Gabriel Venture Partners ("Gabriel"). Gabriel is a $260 million venture capital fund focused on leading investments in technology companies. Gabriel has a deep operations-focused approach where they generally join the board of directors and actively partner with management teams. At Gabriel, Mr. Summe led and structured investments in LVL7 and KMSI. He served as Chairman of the Board of LVL7 after initially investing in 2002. From 1998 to 2001, Mr. Summe was a Principal with J.P. Morgan Partners (formerly Chase Capital Partners) and Flatiron Partners where he led the software initiatives and served on numerous boards. Successful investments include Stamps.com, Starbelly, Interactive Search Holdings, and Arbinet. From 1996 to 1998, Mr. Summe was an investment banker with Deutsche Morgan Grenfell's technology investment banking group. He provided financing and M&A advice to companies. From 1991 to 1994, Mr. Summe was a Senior Consultant with Accenture and worked for Convergys Systems from 1989 to 1991. Mr. Summe received an MBA with Honors from the University of Chicago Graduate School of Business and a BS in Applied Physics with Honors from Xavier University. Mr. Summe's experience as a small-cap technology investor and venture capitalist helping to grow small businesses, with hands-on operational oversight and a focus on stockholder priorities, will assist the Board in formulating and overseeing implementation of a growth strategy.
About Direct Insite
Direct Insite provides best practice financial supply chain automation and workflow efficiencies for procure-to-pay and order-to-cash processing. The Company's global eInvoice Management services automate complex manual business processes such as; invoice validation, order matching, consolidation, dispute handling, and e-payment processing. Direct Insite solutions are used by more than 50,000 users across 110 countries, 35 languages and multiple currencies. For more information, call 954-510-3750, or visit www.directinsite.com
FORWARD-LOOKING STATEMENTS. All statements other than statements of historical fact included in this release, including without limitation statements regarding the company's financial position, business strategy, and the plans and objectives of the company's management for future operations, are forward-looking statements. When used in this release, words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the company's management, as well as assumptions made by and information currently available to the company's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, business and economic conditions, competitive factors and pricing pressures, capacity and supply constraints. Such statements reflect the views of the company with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the company. Readers are cautioned not to place undue reliance on these forward-looking statements. The company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.
Michael J. Beecher
Chief Financial Officer
Direct Insite Corp.