Student Advantage Inc. –

BOSTON – Student Advantage Inc., an online portal site for college students, went public June 17, offering 6 million shares at $8 apiece. The company’s stock priced below its $10 to $12 filing range.

BancBoston Robertson Stephens, Prudential Securities, Volpe Brown Whelan & Co. and Wit Capital Corp. underwrote the initial public offering, which left 30.50 million shares outstanding.

Venture backers include Greylock IX L.P., Princeton Review Publishing and The Main Quad Inc. There were no selling shareholders.

Student Advantage is a fee-based membership program that serves more than one million students in the United States. Members receive a variety of services, including discounts offered by retailers, transportation and telecommunications companies, as well as online content and community features. The company’s target audience is a coveted demographic for national advertisers.

The company earned $43.5 million from the offering, which will be used for business and infrastructure expansion, product development and acquisitions.

Student Advantage has not been profitable in the past several years, losing $5.1 million in 1998 and $3.2 million in 1997.

John Katzman, founder of Princeton Review Publishing, joined the company’s board of directors in March 1996, followed by William Kaiser, a general partner of Greylock, in October 1998.

Student Advantage – Selected Financial

(in thousands, except per share data)

Year Ended December 31, Three Months Ended March 31,

1994 1995 1996 1997 1998 1998* 1999*

Total revenue 155 448 1,730 3,792 17,443 3,396 4,225

Net income (loss) -75 36 -657 -3,152 -5,115 -305 -2,209

Net income (loss) per share -0.01 0.00 -0.05 -0.21 -0.32 -0.02 -0.14

*Unaudited