U.S. Interactive Inc. –

KING OF PRUSSIA, Pa. – U.S. Interactive Inc., a provider of professional services that help companies take advantage of Internet business opportunities, went public August 10, offering 4.6 million shares at $10 apiece. The company’s stock priced at the low end of its $10 to $12 filing range.

Underwritten by Lehman Brothers, Hambrecht & Quist and Adams, Harkness & Hill Inc., the initial public offering left 18.6 million shares outstanding.

Venture backers included Safeguard Scientifics Inc., Technology Leaders II, Thurston Interests and Thurston Bridge Fund. Selling stockholders collectively will sell 441,402 shares, 33,173 of which will be sold by Thurston Interests and 8,229 of which will be sold by Thurston Bridge.

U.S. Interactive provides its clients with integrated Internet strategy consulting and marketing and technology services. The company’s e-Roadmap development plan enables clients to use Internet-based technologies to transact business, communicate and share knowledge among employees, customers and suppliers.

U.S. Interactive plans to use the expected $38.2 million generated in the IPO for equipment, software and the expansion of its facilities. The company will use some of the proceeds to repay debt and for possible acquisitions.

The company has not been profitable since 1995, when it earned $38,000. Since then it has had continuous losses, losing $290,000 in 1997 and $8.4 million in 1998.

Robert Keith, managing general partner of Technology Leaders, joined the company’s board of directors in June 1996. E. Michael Forgash, Safeguard’s vice president of operations, followed in October 1998.

U.S. Interactive – Selected Financial

(in thousands, except per share data)

May 1, 1994 (inception) Year Ended December 31 Three Months Ended March 31*

to December 31, 1994* 1995 1996 1997 1998 1998 1999

Total revenue 200 935 1,950 6,061 13,636 2,378 6,123

Net income 38 -129 -290 -8,443 -20 -2,942

Net income per share 0.01 -0.03 -0.06 -1.36 -0.4