USinternetworking –

ANNAPOLIS, Md. – USinternetworking Inc. an Internet management application provider (iMAP), went public April 8. The stock priced at $21, well above the $16 to $18 filing range.

Underwriters for the IPO included Credit Suisse First Boston, Bear, Stearns & Co. Inc., BT Alex. Brown and Legg Mason Wood Walker Inc. The company sold 6 million shares of common stock, leaving an estimated 38.8 million shares outstanding.

Blue Chip Venture Co., Grotech Capital Group, Venrock Associates, J.H. Whitney Group, US West Communications Inc., Southern Venture Fund SBIC and Waller-Sutton Media Partners were venture backers. There were no selling shareholders.

USinternetworking, founded in January 1998, offers contract-based software applications and support for online customers or iMAP users. The company markets packaged application products from leading software vendors such as Siebel for customer service industries, PeopleSoft for human resources, Sagent for decision-making support and Broad Vision for the e-commerce industry. To increase client response time, reliability and security, USinternetworking recently created a network of data centers in Annapolis, Md., Silicon Valley, Amsterdam and Tokyo.

Launched in late 1998, iMAP services have earned the company less than $2 million in revenue. Since its inception, USinternetworking has never paid dividends to stockholders. Proceeds from the IPO are estimated at $126 million and will be used to expand network facilities and for other general corporate purposes.

Cathy Brienza, a general partner of Waller-Sutton Media Partners, became a director in July 1997. Dean Meiszer, president and managing director of the Crisler Co., joined the board in January 1998. Ray Rothrock, general partner of Venrock Associates, Frank Adams, president and chief executive officer of Grotech Capital Group, William Earthman, partner of Massey Burch Capital Corp., and John Wyant, managing partner and president of Blue Chip Venture Co., all became directors in June 1998. Joseph Zell, with US West, and Michael Brooks, general partner of J.H. Whitney & Co., joined the board in July 1998 and December 1998, respectively.

USinternetworking – Selected Financial

(in thousands, except per share data )

Period From January 14, 1998 (Inception)

to December 31, 1998

Revenue 4,122

Net income (loss) -32,454