Press Release: April 28, 2000

WR Hambrecht + Co Issues Internet Services Update

Report finds investors want short-term revenue growth and salability from Internet Services firms

San Francisco, CA, April 28, 2000—WR Hambrecht + Co today released an eServices industry report that analyzes recent trends in the estimated $27 billion market. Internet Services Update: The Market Speaks, and all other equity research, is available free and real time on WR Hambrecht + Co’s web site at www.wrhambrecht.com.

The report concentrates on factors driving investment demand for Internet Services companies — consulting firms that architect, build and maintain businesses on the Internet. WR Hambrecht + Co’s eServices analyst Greg Gore writes that revenue growth and scalability are more important than earnings for the balance of 2000.

"At the start of this year, the stock market was telling pure plays to grow fast and spend as much money as it takes to capture the Internet Services sector," Gore said. "Given the stormy market conditions, we expected to find investors would value or penalize very different things than in January. Surprisingly, our analysis suggested that little has changed. While the market has become more or less enamored with a few things, it still values short-term revenues growth more than anything else and remains unconcerned about earnings this year."

Gore added, "One thing has changed, however. The market is now also saying that companies must grow revenues faster than employees. The market’s message is clear: Internet Services companies should be investing for future growth and scalability."