Allaire Corp. –

CAMBRIDGE, Mass. – Allaire Corp., a Web development software provider, went public January 22, offering 2.5 million shares at $20 apiece. Shares priced above the company’s $15 to $17 filing range.

The initial public offering, which left 10.5 million shares outstanding, was underwritten by Credit Suisse First Boston, Dain Rauscher Wessels and NationsBanc Montgomery Securities.

There were no selling shareholders. Polaris Venture Partners and BancBoston Ventures Inc. were venture backers.

Allaire develops, markets and supports software for a wide range of Web development. The company’s products and services allow organizations to link their information systems to the Web, as well as to develop new Web-based business applications in areas such as electronic commerce, content management and personalization. Customers include autobytel.com, The Boeing Co., Intel Corp., JC Penny, Lucent Technologies and United Parcel Service.

The approximately $45.5 million in proceeds raised in the offering will be used for product development and expansion of international operations, sales and marketing capabilities.

The company has never been profitable, losing $8 million in the first nine months of 1998 and $7.4 million in 1997.

Jonathan Flint and John Gannon, general partners of Polaris Venture Partners, joined Allaire’s board of directors in May 1995 and December 1996, respectively. Thomas Herring, of Polaris Venture Partners, and Peter Roberts, a managing director of BancBoston Ventures Inc., joined the board in June 1997.

Allaire – Selected Financial

(in thousands, except per share data)

May 5, 1995

(inception) Year Ended Dec. 31, Nine Months Ended Sept. 31,

to Dec. 31, 1995 1996 1997 1997 1998

Total revenue – 2,358 7,650 4,595 13,903

Net loss -188 -1,698 -7,425 -4,548 -7,988

Net loss per share-0.09 -0.97 -4.40 -2.87 -2.84