IPOs/Recent Issues – NET2000 COMMUNICATIONS –

Herndon, Va.

Went public 3/7/2000 at $20 apiece

Filing Range:10 mil. shares @ $13 to $15

Shares Outstanding:34.86 mil. shares

Underwriters:Goldman Sachs

Donaldson, Lufkin & Jenrette/J.P. Morgan/Legg Mason Wood Walker


(Data in $ millions)


12/98 12/99

Total Revenue $9.42 $27.69

Net Loss -22.67 -60.33

The Company:

Net2000 Communications offers broadband telecommunications services to businesses located throughout the mid-Atlantic and northeastern regions of the United States. The company focuses on high-end customers, primarily large and medium-sized businesses, having a minimum of 50 business access lines and spending $50,000 annually for Internet, data and voice telecommunications services. Today, Net2000 offers an integrated package of high-speed data services, Internet services, local telephone services and long distance services. Since introducing its Net2000-branded services in July 1998, the company has successfully acquired over 1,100 new business customers, representing approximately 78,000 access lines. In January 2000, Net2000 entered into a letter of intent to sell approximately 250 resale customer accounts representing approximately 10,000 access lines.


Net proceeds of approximately, $184.7 million will used by the company to expand its sales force, fund expansion, repay senior discount notes and for other general corporate purposes.

Venture Backers:

The Carlyle Group, Northern Telecom Ltd., Blue Water Capital LLC, Societe Generale Capital Corp., Mid-Atlantic Venture Funds, PNC Equity Management Corp.

Board Members:

Clayton Thomas

Clyde Heintzelman

Peter Callowhill

Eric Geis

Reid Miles

Mitchell Reese