Homestore.com, Inc. (Nasdaq: HOMS) today announced that it has been notified by FIRETAP Communications that the provider of broadband communications and enhanced communications services would be ceasing substantially all operations by the end of June 2001. Homestore.com is an investor in FIRETAP and is expecting to report a one-time, non-operating charge of approximately $6 million - $9 million in the second quarter, the majority of which is non-cash.

Homestore.com and a number of private investors, including the National Association of REALTORS, launched FIRETAP Communications in May 2000. As a company in the early stage of development, FIRETAP accounted for significantly less than one percent of Homestore's first quarter revenue, says the company.

Published: June 7, 2001

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