Cybergold Inc. –

OAKLAND, Calif. – Cybergold Inc., a provider of Internet-based direct marketing and advertising solutions, went public September 23, offering 5 million shares at $9 apiece. The company’s stock priced at the high end of its $7 to $9 filing range.

Underwritten by SG Cowen, CIBC World Markets, Volpe Brown Whelan & Co. and E*OFFERING, the initial public offering left 19.4 million shares of stock outstanding.

There were no selling shareholders. Venture backers included Alta Partners, VantagePoint Venture Partners and Alafi Capital Co.

Cybergold combines Internet-based direct marketing and advertising services with cash rewards for consumers when they perform actions desired by the company’s advertising and marketing clients. The cash-based on-line incentive programs provide clients with flexible, incentive-marketing solutions.

The expected $40.9 million generated from the IPO will be used for advertising and marketing and for general corporate purposes including working capital and capital expenditures. A portion of the proceeds might also be used to acquire or invest in businesses, technologies or products that are complementary to Cybergold.

Cybergold has never been profitable, losing $3.9 million in 1997 and $4.8 million in 1998.

John Steuart, former chief financial officer at Alafi Capital, joined as the company’s chief financial officer in June 1996. Christopher Alafi, a general partner at Alafi Capital, joined the company’s board of directors in July 1997. Garrett Gruener, a general partner at Alta Partners, and Alan Salzman, a founder and managing partner at VantagePoint, both joined the board in May 1998.

Cybergold – Selected Financial

(in thousands, except per share data)

Year Ended December 31 Six Months Ended June 30

1996 1997 1998 1998* 1999*

Total revenue 1 531 1,005 271 1,278

Net loss -2,669 -3,869 -4,768 -2,382 -3,948

Net loss per share -0.71 -0.97 -1.35 -0.62 -1.15