E-zine to Editors: Company Web sites may offer immunity against Emulex-type hoaxes

August 28, 2000 -- Corporate Web sites may actually be able to provide news media a high level of immunity from future stock market hoaxes such as the Emulex hoax that occurred August 25, according to the corporate Internet e-zine, LeFile.Com.

"When editors want to verify material corporate news, they should check the company's Web site. If the news is not posted there, they can choose not to run a headline or a story," suggests LeFile (www.lefile.com ) in its August 28, 2000 edition.

Why the company's Web site? "Several reasons," says LeFile. "A press release would still be required. But since it is possible to post news on a company site instantaneously, an 'official' corporate Web site becomes an ideal verification source providing a double-check against the news release copy in the editor's hands at the time."

Even though it's conceivable a hacker might forge a copy of a Web site's homepage,
LeFile claims it's unlikely that companyname.com will be impersonated successfully. A few clicks into the product material behind the home page will verify that the Web site is in fact the real one.

News media would not lose readership because it is impossible for even a major company to "scoop" the major media on the Web.

Instead, the procedure would complement news coverage. Investors could go to the company's Web site there when they see a news headline on their favorite Internet channel, get the "official" statement then return to the wire services and news sites for details, analysis and commentary.

Finally, companies, employees and investors would benefit because the procedure meets the highest standards of Fair Disclosure. For companies without a Web site, establishing a presence is simple and straightforward.

Full text of the proposal can be found at www.lefile.com/articles/ceonotes/ceonotes.htm . LeFile.com is published for senior executives responsible for corporate Web site management.
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