Audible Inc. –

WAYNE, N.J. – Audible, which delivers audio content over the Internet to personal computers and hand-held devices, went public July 21, offering 4 million shares at $9 per share, within its $8 to $10 filing range.

Credit Suisse First Boston, J.P. Morgan & Co., Volpe Brown Whelan & Co. and Wit Capital Corp. underwrote the initial public offering, which left13.4 million shares outstanding.

Patricof & Co. Ventures Inc., Kleiner Perkins Caufield & Byers, Microsoft Corp., Ironwood Capital, AT&T Ventures and CPQ Holdings Inc., a subsidiary of Compaq Computer, were the company’s venture backers.

Audible, which was incorporated in 1995, allows consumers to purchase and download content from its Web site, store it in digital files and replay it on personal computers and electronic devices. The company offers more than 15,000 hours of audio content and has access to publishers including Bantam Doubleday Dell Audio Publishing, Random House Audio Publishing, Dove Audio, Harper Audio, Simon & Schuster Audio and Time Warner AudioBooks. The site also posts audio versions of periodicals such as The New York Times, The Wall Street Journal and The Economist.

Proceeds raised from the offering will be used for marketing and promotions, the acquisition and production of new audio content and for general corporate purposes, including licensing arrangements, personnel expansions and the financing of operating losses that incur as the company expands its customer base. Audible has never paid cash dividends on capital stock.

Timothy Mott, partner of Ironwood, joined the company’s board of directors in December 1995 and served as Chairman through April. Thomas Hirschfeld, managing director of Patricof, joined the board in July 1996. AT&T General Partner R. Bradford Burnham joined the board in March 1997, and Microsoft Vice President Richard Brass was given a seat in April.

Audible – Selected Financial

(in thousands, except per share data)

November 3, 1996 (inception) Year Ended December 31, Three Months Ended March 31,

to December 31, 19995 1996 1997 1998 1998 1999

Total revenue – – 3 132 30 58

Net loss -49 -3,509 -8,029 -8,138 -1,844 -1,474

Net loss per share -0.02 -1.10 -1.49 -1.15 -0.28 -0.20