homestore.com Inc. –

THOUSAND OAKS, Calif. – Homestore.com Inc., an on-line provider of real estate information, went public August 5, offering 7 million shares at $20 apiece. The company’s stock priced at the high end of the $18 to $20 filing range.

Underwritten by Morgan Stanley Dean Witter, Donaldson, Lufkin & Jenrette, Merrill Lynch & Co. and BancBoston Robertson Stephens, the initial public offering left 67 million shares of stock outstanding.

Venture backers included Kleiner Perkins Caufield & Byers, Whitney Equity Partners, Ingleside Interests, National Association of REALTORS, General Electric Capital Corp., Independent Consultants Inc., Fannie Mae and National Association of Home Builders. There were no selling shareholders.

Through its family of Web sites, homestore.com services the real estate community by facilitating communication among consumers, real estate professionals, home builders, renters, property managers and owners and ancillary service providers.

Homestore.com will use the estimated $127.2 million in proceeds from the offering to repay debt, for working capital, for capital expenditures and for other general corporate purposes.

The company has never been profitable, losing $17,000 in 1997 and $3,000 in 1998.

Michael Brooks, a general partner of J.H. Whitney & Co., and a managing member of Whitney Equity Partners, joined the board of directors in November 1996. John Doerr, a general partner of Kleiner Perkins Caufield & Byers, and William Kelvie, the chief information officer responsible for information technology systems at Fannie Mae, both joined as directors in August 1998. Nigel Andrews, an executive vice president of General Electric Capital Corp., joined the board of directors in July.


homestore.com – Selected Financial

(in thousands, except per share data)

Year Ended December 31 Six Months Ended June 30

1996 1997 1998 1998 1999

Total revenue 1,360 42 16,586

Net loss -252 -17 -3 -2 -28,766

Net loss per share -0.07 -1.48