IPOs in registration – eToys Inc. –

SANTA MONICA, Calif. EToys Inc., an online retailer of major and specialty brand toys, filed to go public February 17. The company has not yet announced how many shares it plans to offer, or a suggested stock price.

Goldman, Sachs & Co., BancBoston Robertson Stephens, Donaldson, Lufkin & Jenrette Securities Corp. and Merrill Lynch & Co. will underwrite the initial public offering.

Venture backers include idealab!, Highland Capital Partners, DynaFund Ventures, Intel Corp. and Sequoia Capital. At press time, no shareholder planned to sell any stock.

EToys is a Web-based retailer focused exclusively on children’s products, including toys, video games, software, videos and music. The online toy retailer features detailed product information, value-added services and merchandising through a user-friendly interface, offering an extensive selection of competitively priced children’s products, with more than 8,500 products representing more than 700 brands. The company uses both online and traditional marketing strategies to enhance its brand recognition, primarily focusing its efforts on mothers, who eToys believes are the principal decision-makers for purchases of children’s products.

Since launching its Web site in October 1997, the company has sold children’s products to more than 320,000 customers.

Proceeds from the IPO will be used for general corporate purposes.

The company has never been profitable since its inception, losing $15.26 million in the nine months ending December 31, 1998, and $1.13 million over the same period in 1997.

Tony Hung, a vice president of DynaFund Ventures, joined the company’s board of directors in December 1997, followed in June 1998 by Michael Moritz, a general partner of Sequoia Capital, and Dan Nova, a general partner of Highland Capital Partners.

eToys – Selected Financial

(in thousands, except per share data)

Fiscal Year Ended March 31, Nine Months Ended December 31,

1998 1997 1998

Net sales 687 530 23,900

Net loss -2,268 -1,127 -15,258

Net loss per share* -0.23 -0.14 -0.58

*Pro forma