ASD Systems Inc. –

GARLAND, Texas – ASD Systems Inc., a commerce integration company, went public November 11, offering 5 million shares at $8 apiece. The company’s stock priced at the bottom of its $8 to $10 filing range.

Bear, Stearns & Co. Inc., Prudential Securities Inc., Friedman Billings Ramsey & Co. Inc. and E*OFFERING Corp. underwrote the initial public offering, which left 17.7 million shares outstanding.

There were no selling shareholders. ASD Partners, CKM Software Partners, VantagePoint Venture Partners and Staubach Co. were venture backers.

ASD Systems acts as an intermediary between companies and their customers, offering services such as order processing, call center networks, e-commerce integration and supply chain integration. The company focuses on providing services to Internet retailers.

ASD Systems intends to use the $36.1 million in proceeds expected from the IPO for general corporate purposes, including working capital, capital expenditures, sales and marketing, software development and technical support.

ASD Systems lost $2.4 million in the nine months ended September 30, 1998 and $5.9 million in the nine months ended September 30, 1999.

Kevin Yancy, president of Spyglass Equities (an affiliate of Staubach), joined the company’s board of directors in March. Paul Sherer, a partner at VantagePoint, joined the company’s board of directors in August, along with Alan Salzman, a managing partner and founder of VantagePoint.

ASD Systems – Selected Financial

(in thousands, except per share data)

January 1, 1995 Jan. 1, 1996 Nine Months Ended

(inception) (inception) Dec. 21, 1996 Oct. 14, 1997 Year Ended Sept. 30

to Dec. 31, 1995 to Oct.13, 1997 to Dec. 20, 1996 to Dec. 31, 1997 Dec. 31,1998 1998 1999

Total revenue 5,279 6,826 4,882 2,574 8,020 4,962 7,894

Net income (loss) 1,234 1,396 -820 -27 -2,606 -2,385 -5,907

Net loss per share -0.43 -0.4 -0.59