Press Release: March 2, 2000

WR Hambrecht + Co Issues E-learning Industry Report

Study focuses on potential of corporate technology-based education within $66 billion professional training market

San Francisco, CA , March 2, 2000—WR Hambrecht + Co, the online investment bank, today announced it issued a report on the burgeoning multi-billion dollar corporate e-learning market. Corporate E-learning: Exploring a New Frontier is available on WR Hambrecht + Co’s web site at www.wrhambrecht.com.

The report concentrates on the growth of electronic-based corporate training as firms migrate away from traditional training programs. According to the report, corporate e-learning is largely driven by workforce decentralization, cost pressures and demographic shifts. WR Hambrecht + Co’s Director of Equity Research Keith Bachman expects nearly 40 percent of all corporate training to be e-learning by 2003, doubling today’s levels.

"In the next 18 months, the stock market should see dozens of e-learning companies popping on the scene, giving investors a much broader choice of pure-play e-learning opportunities. We believe investors who do not pay attention to this growing market will miss significant investment opportunities," Bachman said.

The report’s key findings include:

• E-learning is poised to explode — Spending in online training is projected to nearly double each year through 2003, reaching approximately $11.5 billion by that time.

• Online soft skills training should surpass online IT training by 2003 — At 123 percent CAGR, soft skills training is growing twice as fast as the online IT training market.

The report offers private and public company profiles for more than 20 companies, including Centra Software, Click2Learn.com, Learn2.com, SkillSoft, SmartForce, Docent, Headlight.com, Ninth House Network, Pensare and Saba Software.