AdForce Inc. –

CUPERTINO, Calif. – AdForce Inc., an online ad management and delivery service company, held an initial public offering May 7. The company offered 4.5 million shares of common stock at $15 apiece, above the $10 to $12 filing range.

Hummer Winblad Venture Partners, 360 Capital Partners L.P., 21st Century Internet Venture Partners and Convergence Partners were venture backers. There were no selling shareholders.

Hambrecht & Quist, Lehman Brothers, Volpe Brown Whelan & Co. and Charles Schwab & Co. Inc. underwrote the offering, which left 19.1 million shares outstanding.

AdForce, incorporated in California in January 1996 and reincorporated in Delaware in April, offers ad campaign design, inventory management and analysis of capabilities for Internet advertising. Customers include Bozell Worldwide, GoTo.com and TVMV Inc.

Proceeds, worth approximately $67.5 million, will be used for general corporate purposes.

Mark Gorenberg, partner at Hummer Winblad and Neil Weintraut, founder and partner at 21st Century, joined the company’s board of directors in December 1996. They were followed a year later by Eric Di Benedetto, co-founder and general partner of Convergence; Barton Farber, chief executive officer of FABERcapital, has been nominated to the board.

AdForce – Selected Financial

(in thousands, except per share data )

January 16, 1996 (Inception) Year Ended December 31, Three Months Ended March 31,

to December 31, 1996 1997 1998 1998 1999

Net revenue 320 4,286 414 3,220

Net loss -3,452 -5,704 -15,620 -2,603 -5,003

Net loss per share -1.44 -0.37