Press Release: December 20, 1999

WR Hambrecht + Co Initiates coverage of VerticalNet (VERT)

B2B eCommerce Leader Just Beginning to Tap Into the Power of Its Portfolio

San Francisco, CA, December 20, 1999—WR Hambrecht + Co, the online investment bank, today initiated coverage of VerticalNet (VERT). The full research report can be found at www.wrhambrecht.com

VerticalNet, Inc. (www.verticalnet.com) owns and operates 53 industry-specific Web sites designed as online business-to-business communities known as vertical trade communities. These vertical trade communities provide users with comprehensive sources of information, interaction, and ecommerce.

According to the report, VerticalNet has built a tremendous B2B ecommerce infrastructure across a broad array of vertical industries, positioning itself to capture significant market share in each of these vertical markets. The report argues that, with its leverageable technology base, the Company should be able to tap into the power of the network it has created, build transaction capabilities across the network, and create a B2B ecommerce powerhouse.

"With a focused, experienced management team, high cash balance, and a leverageable technology platform, VerticalNet has proven adept at expanding horizontally as well as adding depth vertically, creating market making and transaction opportunities across each of its verticals, " said Zoltan Deak, ecommerce analyst for WR Hambrecht + Co. "We see tremendous value in the B2B ecommerce infrastructure VerticalNet has created and believe the long-term opportunity ahead of the Company is substantial."