Surviving the Portal Wars: Go2Net.com Jackie Dutcher Jodie Raney PJ Santos Brian Schwarz

Agenda The Portal Market Company Overview Business Strategy Go2Net Network Portal Services Search Engines Small Business E-commerce Partnerships and Acquisitions Competition Strengths and Weaknesses Recommendations

The Portal Market Portals are Internet media companies that offer comprehensive information, communications and e-commerce services to millions of users.

Company Overview Founded in 1996, IPO in 1997 Strategic Investment by Paul Allen Revenue = 70% Advertising 30% E-commerce Go2Net Network > 10 major internet sites

Business Strategy Leverage the diversified GO2Net Network for profits Russell C. Horowitz, Go2Net's Chairman and CEO "The strong leverage inherent in Go2Net's business model will continue to differentiate us as one of the Internet sector's few operationally profitable companies. Going forward, we will continue to be aggressive in our strategic activity, focusing on opportunities that help us maintain and enhance our leadership position in the Internet's fastest growing sectors.” Profits, DCF models and P/E’s Thinking “old economy” when it comes to partnerships, acquisitions and growth What a concept...

Portal Services Value added eyeball generators Web’s premier financial discussion & information site 3yr agreement with National Discount Brokers Purchased $1 million of NDB stock - integrated sites Real time quotes Wireless version for palm VII Free game site, no plug-ins Linked to Go2Net Network

Search Engines Different names for the same function Best known, straight forward Use of a metaphor to describe the function of the site 100 lists of everything from music to travel

Small Business Internet’s largest community of small businesses 800,000 members Pay monthly “storefront” fee Web hosting, tech support 24/7 Site design, market research

Small Business - links/partnerships Leading payment authorization service 70,400 merchants use for processing e-commerce transactions. Added 12,000 last quarter Businesses can authorize, process and manage credit card and electronic check transactions in real time from any computer Planet Payment alliance Prime.com Partnership with publisher of QuickSite web design software

E-commerce Typical portal sites for e-commerce The ebay site for Go2Net The Amazon.com of the Go2Net network

Partnerships and Acquisitions Growth that adds value to their shareholders $10m investment - “Great answers from great people” Pays Go2Net to be prominently featured on Network Set-top TV boxes delivering broadband access to the internet with Go2Net as the portal of choice Others Goto.com, Looksmart, Realnames, Find What

Competition Eyeballs 12M 35M 48M Sales $19M $69M $232M Profit $8.3M ($31M) $45M Market Cap $1.8B $4.2B $67.6B Cash $237M $627M $992M

Competition - Traffic Data

Strengths and Weaknesses $262M in CA vs. $25M in CL Paul Allen Connections Diversification One of the few operationally profitable companies on the internet Former Microsoft VP Rick Thompson named CFO 12yrs experience in product creation 80% operating margins Market capitalization vs. competition Marketing/branding/identity of web sites Network needs cohesion Longevity of income “extortion” from VC rich start-ups looking for exposure

Conclusion Provides all necessary services required of an Internet portal site. Accommodates all venues of e-commerce - B2B, B2C and C2C Strategically positioned to be the portal of choice for future broadband TV internet access

Go2Net Portal Finance Games E-commerce Search