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To: Rob S. who wrote (74468)	8/18/1999 5:30:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Internet marketing IPOs face lukewarm audience NEW YORK, Aug 17 (Reuters) - Competing Internet marketing firms Mypoints.com Inc. <MYPT.O> and Cybergold Inc. <CGLD.O> are expected to debut in a lukewarm market that has heard about the initial public offerings but is not overly excited. "I'm not very excited about them. We are looking at two companies that are coming out in the same business but are still essentially start-ups and completely unproven. At this stage, it's too premature for them (to go public), but the buzz is there," said Irv DeGraw, research director at WorldFinanceNet.com. MyPoints.com provides Internet direct marketing and incentive and loyalty products. The company cut the expected price for the its five million share offering to $8 from $10- $12. BancBoston Robertson Stephens is the lead underwriter on the deal. The company, which has relationships with Sprint Corp. <FON.N>, Microsoft Corp. <MSFT.O> and Walt Disney Co. <DIS.N>, posted a net loss of $15.8 million on total revenue of $3.9 million for the six months ended June 30. Cybergold, which also provides online direct marketing and cash-based incentive advertising products, is slated to offer four million shares, or a 21 percent share, in a range of $9-11 through lead underwriter SG Cowen Securities. It posted a net loss of $3.95 million on revenue of $1.3 million for the six months ended June 30. Both companies' approach aims to give Internet consumers the opportunity to earn rewards by responding to online offers. "We tell our clients that these programs are good to an extent," said Marissa Gluck, an analyst at Jupiter Communications. "These companies' services are good for companies that have products not bought frequently. Reward programs on the Internet are still in their infancy. There is definitely growth potential." She noted that their growth potential would be greater if they outsourced private labeling to users so that the interactive marketing companies' clients would gain more from the branding. Jupiter forecasts Internet marketing to grow to $7.7 billion by 2000 in U.S. online revenues from the $3 billion expected in 1999. The recent downturn in the Internet sector has not dampened Internet advertising and marketing, which continues to demonstrate "impressive" momentum, Gluck said. The firm sees online advertising growing to $11.5 billion in 2003. The media, financial services and automotive sectors will account for about half of the spending in 2003, Jupiter said in a report. 859-1730)) REUTERS Rtr 14:35 08-18-99