Talk City Inc. –

CAMPBELL, Calif. – Talk City Inc., a provider of on-line communities and interactive services for businesses and consumers, went public July 19, offering 5 million shares at $12 apiece. The company’s stock priced at the high end of its $10 to $12 filing range.

Underwritten by Lehman Brothers, Volpe Brown Whelan & Co., U.S. Bancorp Piper Jaffray and E*Trade Securities, the initial public offering left 24.175 million shares outstanding.

Venture backers included National Broadcasting Co., Patricof & Co. Ventures Inc., New York Life Insurance Co., Hearst Communications Inc., Cox Interactive Media Inc., Media Technology Equity Partners and Starbucks Corp. There were no selling shareholders.

Talk City offers businesses a wide range of on-line services to help them develop and expand relationships with customers, suppliers and employees. Services include designing fully integrated, customized communities, producing events, conducting market research and facilitating meetings.

The company offers consumers access to a network of on-line communities that include 20 topical categories, more than 50 themed communities, 50 co-branded network participant communities and thousands of user generated communities.

Talk City will use the estimated $54.7 million in proceeds from the offering for general corporate purposes.

The company has never been profitable, losing $16.2 million in 1998 and $6.4 million in 1997.

Thomas Hirschfeld, a managing director of Patricof, joined the company’s board of directors in October 1997. He was followed by Barry Weinman, a managing director of Media Technology, in August 1998.

Talk City – Selected Financial

(in thousands, except per share data)

March 29, 1996 (inception) Three Months

to December 31, Year Ended December 31, Ended March 31,

1996 1997 1998 1998 1999

Revenue 14 208 1,453 125 980

Net income (loss) -1,316 -6,429 -16,217 -2,911 -6,971

Net income (loss) per share -0.49 -2.10 -4.92 -0.87 -1.90