MANAGEMENT
David Wetherell, CEO, has an excellent track record in the Internet industry. He started his first software company, Softrend, in 1982, and has been observing and investing in Internet companies ever since,
Andy Hajducky, CFO, has been CFO of two other companies and most recently was a partner with Ernst & Young's M&A practice in New England. At CMG, he has posted an excellent track record planning and executing many transactions.
Peter Mills heads the @Ventures Menlo Park office and is the company's "eyes and cars" in the West. He has been instrumental in identifying many of the best-perfonning @Ven@es investments.
We should also note that each of the wholly-owned subsidiaries has an experienced management team, augmented by technology and marketing veterans Bill White and David Andonian, who provide further management oversight as presidents of CMG's portfolio of Internet companies.
OPERATING FORECAST
Because of CMG's structure, our model includes only operating results from the subsidiaries and corporate overhead. Tberefore, our estimates do not include any asset sales or other liquidity events. As such, these estimates do not provide much utility in analyzing the underlying businesses, and we would encourage investors to evaluate the company and the stock based on asset value.
INVFSTMENT RISKS
Among the risks are that many of the portfolio companies are young and unproven, t@ company has no earnings and the market may not value the security based an asset value, a sustained weak IPO market could damage investor sentiment, and the stock is exposed to potential valuation swings based on price changes of the public holdings that may be out of management's control.
BancBosion Robertson Stephens maintains a market in the shares ofAmazoiLcom, Cisco Systems, CMG Information Services, CNET, Exodus Communications, Lycos, ive@avity, Sun Microsystems and
Banc2oston Robertson Stephe!
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The Womtadon contained herein is not I MWICW inglysis Of @ U*WW fact respecting any came Or security. Although
opinions and estimates expressed h@n rmlmt the ft@t jvdlment of lkncbeston Robcmson S"bens, the ii n upon which &wb
opiniotts and estimates ut based is not Tmcmyily updated on a regular basic when it iL dw date of the chsnp cftymw will be noted@ in
&ddidor6 opinions and ati@@ am $object to CUASC @(hout nocim. This R"n contains fo@4-looking statements, va(ch invoivt risks and uncouirAPA Actual results nuy differ significantly ftiom the mtulu described in the forward-looking tftxem*@ Factors that Night @C such a di@e include, but m cm li@tod tN those discatiod in 'Invc4m=t Risim.' Banaot4n Rob"on Stephens from dw4 to arm pa@ corporate fi@" or other services for @ companies 4cson'bed kmin and my occasionally poncst Next. nonpublic information regarding Such COnVaAitL This information is not used in the preparation or the opiniont sad estimates @emin, Whik the information eased to this @ and @ opinions topuined @n we based on sourm believed to be reliable. Ba@oston Kobcruon St@ has not independently @fied The facts, anumpdns and esdrnaw3 cort%Wned In this Rcpom A@ingly, no representation or @ty, @st or implied. it made " to, and no rclianot should be pk"d on, the fainwss, accuracy. convlct=cu or omctnm of the irlfanntift and opinions contained in this RWRL B&ncSostan Robertson Stephens, its n=tging di=6m, its sitilizies, u&or its amleyvcs my have all interest in %k wuriua of Om iscut(s) described and may rtuVA purchases or Wa while this repon is in cimulationB&nc6oston itobmw Stephens ltttemtimia Ltd. is regulated by ft Socurldet and PuW= AuftNly In the Ultited Kingdom. This publication is not meant @ private cuita@.
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Unless othezw@ noted, prices &= asofmonday, October 5, 1998,
Copyright 0 1996 Bencgoston Robertson Stephens Inc.
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