TEAM NIMBUS: COMPANY HEADLINES

TEAM NIMBUS

COMPANY HEADLINES
(Amazon.com, eBay.com, and iVillage.com)

S&P gives prelim. ratings to Amazon.com shelf
Wednesday, May 26, 1999 12:25 PM

NEW YORK, May 26 - Standard & Poor's today assigned its preliminary single-'B' senior unsecured, preliminary triple-'C'-plus subordinated, and preliminary triple-'C' preferred ratings to Amazon.com's (Nasdaq:AMZN) $2.0 billion mixed shelf registration.

At the same time, Standard & Poor's revised its outlook on Amazon.com's existing ratings to stable from developing. Standard & Poor's also affirmed its single-'B' corporate credit and senior unsecured ratings, and its triple-'C'-plus subordinated rating for the company.

The outlook revision reflects Standard & Poor's belief that Amazon.com's enhanced financial flexibility will provide a cushion over the next couple of years as its business model evolves toward a broader product set and gains the critical mass required to attain satisfactory profit margins. Revenue growth, as well as customer growth and retention, has been encouraging.

Amazon.com had more than $1.4 billion in cash and marketable securities as of March 1999. Furthermore, the company historically has had relatively small cash outflow relative to its net losses, primarily due to a vendor-financed inventory operating cycle. Standard & Poor's expects this benefit to diminish, however, as the company invests in a more substantial distribution system and as inventory increases as a percent of sales.

The ratings for Amazon.com continue to reflect the risks of rapid growth in an evolving marketplace, as well as Standard & Poor's expectations of negative free operating cash flow over the next several years due to more aggressive investment and diminishing benefits from vendor financing. The ratings also consider the potential for margin deterioration due to heightened competition on the Internet and the introduction of new product categories. These risks are tempered, somewhat, by Amazon.com's current position as the leading on-line retailer of books, music, and videos.

Amazon.com has been successful in creating a strong brand, which is critical to the long-term success of any retailer selling goods through the Internet. The company's customer list and revenue base have about tripled in the past 12 months, increasing the likelihood that Amazon.com may eventually reach the critical mass necessary to achieve positive operating income--particularly in its core book selling business. While new product launches and large marketing efforts improve Amazon.com's market presence and consumer awareness, management is making a conscious decision to delay near-term profitability in favor of long-term positioning. Large investments in distribution facilities in 1999 should eventually improve the company's delivery times and allow more direct buying from book and music publishers. Amazon.com is well positioned to protect its leadership in "e-commerce" because of its ability to quickly launch new product categories, react to competitive forces, and make acquisitions with its currently strong stock currency.

OUTLOOK: STABLE
Although downward pressure on the rating is limited due to the company's large cash holdings, evidence that Amazon.com's business model can achieve profitability is not anticipated over at least the next year. While some progress has been made in the company's core book retailing business, more favorable trends must exist before a positive change in the outlook can be considered, Standard & Poor's said.

Quote for referenced ticker symbols: AMZN

EBAY

eBay and Mail Boxes Etc. Make Key Investments in iShip.com
Tuesday, May 25, 1999 10:08 AM

Funding by E-Commerce and Brick-and-Mortar Powerhouses Follows Recent Alliance Between the Three Companies to Bridge 'Net and Physical World for Seamless E-Commerce Shipping Solution

BELLEVUE, Wash., May 25 /PRNewswire/ -- iShip.com(TM), a company that provides Web-based shipping services, today announced its most significant investments to date in the form of strategic funding by eBay (Nasdaq: EBAY) and Mail Boxes Etc. (MBE). The investments by such leading companies reflect the growing imperative to manage shipping and delivery as a competitive differentiator in the next generation of e-commerce solutions. iShip.com is at the forefront of this wave with relevant technology that puts multi-carrier package pricing, shipping and tracking tools on the Web, for simpler, more convenient and cost-effective e-commerce.

On the Web, the merchant-customer relationship doesn't end with the clicked "buy" button; and it's often neglected "nuts-and-bolts" factors like shipping and delivery of the goods that impact customers' overall satisfaction and merchants' profit and reputation. iShip.com's vision, which is now accelerated and strengthened with the latest strategic investments, is to address these problems for e-tailers and their customers with a complete, multi-carrier Web-based shipping solution that ties e-commerce into real-world shipping and delivery services, thereby delivering choice, convenience and efficiencies to e-tailers and their customers. For example, users of the iShip service will have the option to visit MBE's more than 3,000 franchises nationwide to pack and ship goods, or receive goods ordered online.

"E-commerce opens a universe of powerful possibilities, but one neglected issue is how we will bridge the world of e-commerce with the brick-and-mortar infrastructure that's at the core of our economy," said Steve Teglovic, co-founder and CEO of iShip.com. "We at iShip.com believe we can create a better, more efficient and more compelling e-commerce experience -- one package at a time -- with our 'Site-to-sidewalk' e-commerce shipping solutions."

"This investment is an integral component of Mail Boxes Etc.'s commitment to bring high-trust and high-touch to high-tech," said James Amos, President and CEO of Mail Boxes Etc. "Mail Boxes Etc. is committed to aligning our expensive network of more than 3,000 domestic franchises with iShip.com's innovative Web-based shipping services."

"iShip.com is tackling a critical need for easy, integrated e-commerce shipping solutions," said Meg Whitman, President and CEO of eBay. "Our investment will support iShip.com's vision to develop and deliver best-of-breed Web-based pricing, shipping and tracking services; something we know our customers will value."

eBay, Mail Boxes Etc. and iShip.com recently announced that they expect to develop a solution for eBay members that is intended to integrate eBay auctions with Web-based packaging, shipping and tracking information, and give users the option to take advantage of secure, convenient package delivery at over 3,000 MBE franchises nationwide. Such a solution is expected to dramatically simplify the process of coordinating shipping specifics on both ends.

Other Investors
The investments by eBay and Mail Boxes Etc., a wholly-owned subsidiary of US Office Products Company (Nasdaq: OFIS), were part of a round of funding that also included iShip.com's original investors: Draper Fisher Jurvetson, Intel and UPS Strategic Enterprise Fund.

"It's extremely rewarding to see the Internet and more traditional companies investing in iShip.com, especially when the interest comes from such leaders in their fields. We plan to build our services and the iShip.com brand aggressively to maintain that interest," said Teglovic.

About iShip.com
iShip.com is an Internet services company bringing powerful, easy-to-use Web-based shipping services to e-commerce merchants and their customers, and to businesses everywhere. iShip.com's unique Web solutions bring multi-carrier choice, convenience, control and flexibility to package pricing, shipping and tracking. The iShip service is used by Web merchants and their customers to optimize the overall e-commerce experience. iShip.com was founded in 1997, and is based in Bellevue, Washington. Investors include eBay, Mail Boxes Etc., Intel, Draper Fisher Jurvetson, and UPS Strategic Enterprise Fund. For more information, visit www.iship.com.

NOTE: iShip.com and iShip are trademarks of iShip com. All other products and brands may be trademarks or registered trademarks of their respective owners.

SOURCE iShip.com
CONTACT: Jessie Brumfiel of Brumfiel & Etienne, 415-241-7195, or jessie@brumet.com, for iShip.com

Quote for referenced ticker symbols: OFIS, EBAY
© 1999, PR Newswire

IVILLAGE

iVillage to launch technology channel with ZDNet content
Wednesday, May 26, 1999 06:53 PM

NEW YORK, May 26 (Reuters) - iVillage Inc. (Nasdaq:IVIL) , a community-oriented Internet site for women, said Wednesday it has plans to develop a new Web channel focused on technology using content provided by ZDNet (Nyse:ZDZ) , the online unit of media and marketing company Ziff-Davis Inc (Nyse:ZD) .

The new computing channel, which is scheduled to launch some time in the third quarter will be geared toward the growing number of women who are using the Internet to pool information in their personal and professional lives.

As part of the deal with ZDNet, iVillage.com http://www.ivillage.com members will be able to access top technology news, software tips and buying information offered via ZDNet's computershopper.com, Family PC, Yahoo! Internet Life, PC Magazine, as well as downloads and software information from the ZDNet Software Library.

"The goal of the computing channel is to teach women that computers can help them in their daily lives," said Kate Hanley, the producer of the computing channel. "It's not so much about teaching them how to become technological wizards."

Hanley said the computing channel will be divided into three main communities, so whether women are new users or experienced users they can access content that is geared toward the knowledge level of the individual.

The site will also include information on the top ten software downloads for women every week, where producers of the site go into ZDNet's expansive software library and handpick what they think is useful to a female audience, such as a software program to manage a family's health records.

iVillage.com boasts 5.5 million unique monthly visitors to their site and provides interactive services through 15 channels, including Baby Shop, Better Health and Parent Soup.

In late afternoon trading shares of iVillage were almost $48 per share, up about $3 from Tuesday's close on the Nasdaq stock exchange.

Shares of ZDNet were trading at just below $19, off about $1 from Tuesday on the New York Stock Exchange.