Webstakes.com Inc. –

NEW YORK – Webstakes.com Inc., an on-line sweepstakes promotion company, went public September 24, offering 3.575 million shares at $14 apiece. The company’s stock priced in the middle of its $13 to $15 filing range.

Underwritten by Bear, Stearns & Co. Inc., ING Barings, Thomas Weisel Partners and Wit Capital Corp., the initial public offering left 14.2 million shares of stock outstanding.

There were no selling shareholders. Venture backers included XL Ventures, At Home Corp., The Travelers Insurance Co. and INVESCO Private Capital Inc.

Webstakes.com integrates sweepstakes, contests and similar promotional events with direct marketing tools and a database of more than 1.4 million consumers. The company generates revenue through the sale of promotional services that allow clients to identify and communicate with potential customers, and to increase sales and brand awareness.

Webstakes.com plans to use the expected $45 million generated from the IPO to repay debt, for working capital and for general corporate purposes including advertising, marketing and sales. The company also might use a portion of the proceeds to invest in or acquire complementary businesses, technologies, products or services, or to invest in geographic expansion.

Webstakes.com has never been profitable, losing $227,000 in 1997 and $1.4 million in 1998.

Kristopher Wood, managing director at XL Ventures, will join the company’s board of directors upon completion of the offering.

Webstakes.com – Selected Financial

(in thousands, except per share data)

January 8, 1996 (inception) Year Ended December 31 Six Months Ended June 30

to December 31, 1996 1997 1998 1998 1999

Total revenue 80 1,618 4,799 2,263 3,054

Net loss -221 -227 -1,414 -248 -4,393

Net loss per share -0.06 -0.05 -0.27 -0.05 -3.28