ITXC Corp. –

PRINCETON, N.J. – ITXC Corp., a provider of Internet-based voice and fax services, went public September 28, offering 6.25 million shares at $12 apiece. The company’s stock priced in the middle of its $11 to $13 filing range.

Underwritten by Lehman Brothers, CIBC World Markets and First Analysis Securities Corp., the initial public offering left 34.8 million shares of stock outstanding. There were no selling shareholders.

Venture backers included VocalTec Communications Ltd., Spectrum Equity Investors, Chase Capital Partners, Intel Corp., DS Polaris Ltd. and Flatiron Associates.

IXTC uses its software to bridge the gap between telephones and the Internet by routing telephone calls over the Internet and other data networks.

The company plans to use the expected $68.2 million generated from the IPO to fund capital expenditures and operating expenses, to expand its network and improve its technology. IXTC also will use a portion of the capital to finance increased sales and marketing expenses, to repay debt and for general corporate purposes. The company may use a portion of the proceeds to acquire complementary businesses or technologies.

IXTC has never been profitable, losing $2.1 million in the six months ended June 30, 1998 and $7.3 million in the six months ended June 30, 1999.

Elon Ganor, chairman of the board at VocalTec Communications, joined the company’s board of directors in October 1997. William Collatos, a founding general partner at Spectrum, and Frederick Wilson, founder of Flatiron, both followed in April 1998.

ITXC – Selected Financial

(in thousands, except per share data)

July 21, 1997 (inception) Year Ended Six Months Ended June 30

to December 31, 1997 December 31, 1998 1998 1999

Total revenue 59 1,891 523 7,753

Net loss -646 -7,207 -2,059 -7,326

Net loss per share -0.09 -0.88 -0.26 -0.9