ShopNow.com Inc. –

SEATTLE – ShopNow.com Inc., a provider of an on-line marketplace, went public September 29, offering 7.25 million shares at $12 apiece. The company’s stock priced at the high end of its $10 to $12 filing range.

Underwritten by Dain Rauscher Wessels, U.S. Bancorp Piper Jaffray, SoundView Technology Group and Wit Capital Corp., the initial public offering left 33.5 million shares of stock outstanding.

There were no selling shareholders. Venture backers included 24/7 Media Inc., First Analysis Corp. and Chase Manhattan Capital.

ShopNow is an on-line shopping portal where customers can link to more than 1 million products and services from more than 30,000 merchants. The Web site lists categories of information and lists of stores that shoppers can browse, sort and search by category, merchant or product.

The company plans to use the expected $80 million generated from the IPO to repay debt, for working capital and for general corporate purposes. The company also will use the proceeds for creating a public market for its common stock and to facilitate future access to public markets. ShopNow will also consider using a portion of the proceeds to acquire or invest in complementary businesses, products and technologies.

ShopNow has never been profitable, losing $4.8 million in 1997 and $24.7 million in 1998.

Bret Maxwell, vice chairman at First Analysis, and Mark Terbeek, former associate at First Analysis, both joined the company’s board of directors in February 1997. Jacob Friesel, the executive vice president of sales and marketing and a director at 24/7 Media, joined in August.

ShopNow.com – Selected Financial

(in thousands, except per share data)

January 20, 1994 (inception) Year Ended December 31 Six Months Ended

to December 31, 1994 1995 1996 1997 1998 June 30, 1999

Total revenue 279 727 993 604 7,154 15,982

Net loss -181 -113 -810 -4,766 -24,745 -26,234

Net loss per share -0.11 -0.06 -0.4 -1.83 -7.01 -5.5