Inc. –

NEW YORK – Inc., a provider of e-mail services, held an initial public offering June 17. The company offered 6.85 million shares at $7 apiece, below its $10 to $12 filing range.

Salomon Smith Barney, Painewebber Inc. and SG Cowen underwrote the initial public offering, which left 42.08 million shares outstanding.

There were no selling shareholders. Lycos Inc., CNET, NBC Multimedia, CitiGrowth Fund II Offshore and CG Asia-American Fund were venture backers. provides free, Web-based e-mail services. The company generates revenues primarily from advertising related sales, including direct marketing. also provides businesses and other organizations with outsourced e-mail services.

The $43.4 million expected from the offering will be used to expand the company’s computer systems, develop its Web site and ISP partnerships, expand sales and marketing activities, hire personnel, finance potential acquisitions and for general corporate purposes. has not been profitable, losing $12.5 million in 1998 and $3.0 million in 1997.

John Whitman, a managing partner at Sycamore Ventures, the manager of CitiGrowth Fund II Offshore and CG Asia-American Fund, joined’s board of directors in July 1998. – Selected Financial

(in thousands, except per share data)

Year Ended December 31, Three Months Ended March 31,

1996 1997 1998 1998 1999

Revenue 19 173 1,495 80 1,186

Net loss -545 -2,996 -12,525 -1,044 -6,408

Net loss per share -0.84 -0.62