Primus Knowledge Solutions Inc. –

SEATTLE – Primus Knowledge Solutions Inc., a provider of Web-based customer support software products, held an initial public offering July 1. The company offered 4.15 million shares of common stock at $11 each, within its proposed $10 to $12 price range. Selling shareholders sold 150,000 shares.

BancBoston Robertson Stephens, Hambrecht & Quist, U.S. Bancorp Piper Jaffray and FAC/Equities underwrote the estimated $45.65 million offering, which left 13.5 million shares outstanding. Proceeds will be used to repay a term loan facility with Imperial Bank and to provide working capital.

Venture backers included Trans Cosmos Inc., Oak Investment Partners VI., Norwest Equity Partners V, Snowdon L.P., EnCompass Group and U.S. Information Technology Financing.

Incorporated in Washington in 1986, Primus develops software applications that allow a company to retain information such as customers complaints, implement solutions, stored solutions and share problems and resolution information across an enterprise. Primus customers include Microsoft Corp., Motorola and Xerox.

Yasuki Matsumoto, president of EnCompass Group Inc., has been a Primus board member since October 1994. Promod Haque, a partner of Norwest Venture Capital, and Fredric Harman, a general partner of several venture capital funds affiliated with Oak Investment Partners, became board members in February 1996.


Primus Knowledge Solutions – Selected Financial

(in thousands, except per share data)

Year Ended December 31, Three Months Ended March 31,

1996 1997 1998 1998 1999

Total revenue 2,422 5,189 8,610 1,365 3,911

Net loss -5,878 -5,985 -10,603 -1,626 -1,863

Net loss per share -1.58 -1.62 -2.82 -0.44 -0.48