IPOs IN REGISTRATION – GRIC Communications Inc. –

MILPITAS, Calif. – GRIC Communications Inc., a provider of software and services that enable companies to offer Internet-based products, went public December 15, offering 4.6 million shares at $14 apiece. The company’s stock priced at the high end of its $12 to $14 filing range.

CIBC World Markets, U.S. Bancorp Piper Jaffray and Prudential Volpe Technology underwrote the offering, which left 17.7 million shares outstanding.

There were no selling shareholders. Venture backers included SingTel Ventures, Vertex Group, H&Q Asia Pacific and L&H Investment Co.

GRIC Communications provides services and software that gives clients – Internet Service Providers, telecommunications companies and other types of communications providers – the ability to offer Internet-based products and services including Internet telephony and Internet roaming. The company also offers billing and collection services.

The company plans to use about $15 million of the expected $59.7 million generated from the initial public offering for capital expenditures aimed at expanding its network infrastructure and its employee base. The remainder of the proceeds will be used for general corporate purposes and working capital, including the possible acquisition of complementary technologies, products or businesses.

GRIC Communications has never been profitable, losing $3.8 million in 1997 and $17.9 million in 1998.

Ta-Lin Hsu, a chairman at H&Q Asia Pacific, joined the company’s board of directors in August 1996. Jozef Lernout, a co-chairman and managing director at Lernout & Hauspie, joined the board in April 1999 and Kheng Nam Lee, a past president at Vertex Group, followed in August 1999.

GRIC Communications – Selected Financial

(in thousands, except per share data)

Year Ended December 31 Nine Months Ended September 30

1994 1995 1996 1997 1998 1998 1999

Total revenue 403 1,534 2,549 1,713 5,437

Net loss -93 -726 -2,614 -3,842 -17,902 -11,013 -15,287

Net loss per share -0.52 -4.42 -9.19 -5.66 -7.61