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To: Mike E. who wrote (100)	1/27/2000 10:02:00 AM
From: Mike E.	Read Replies (1) \| Respond to of 113

(PR NEWSWIRE) FS Van Kasper Initiating Coverage on Mustang.com With a Strong FS Van Kasper Initiating Coverage on Mustang.com With a Strong Buy Rating SAN FRANCISCO, Jan. 27 /PRNewswire/ -- The following is being issued by FS Van Kasper, a member of the National Association of Securities Dealers, CRD number 7665: Jennifer Jordan, Internet/IT Services analyst at FS Van Kasper, has initiated coverage on Mustang.com. (Nasdaq: MSTG) ($12 1/4) with a Strong Buy Rating and a 6-month price target of $25. Below are direct quotations from Jennifer Jordan's research report: -- "Mustang.com is a leading provider of enterprise class eService solutions for inbound e-mail management software with more than 330 clients and a run-rate of about 50 new clients per quarter. -- "IDC estimates that the market for worldwide customer service and support applications will increase from $160 million in 1999 to $2 billion by 2003. -- "We believe that Mustang.com is currently significantly undervalued with a price-to-sales multiple (PSR) of 7.2x FY00 revenue estimates compared to 43.0x for its peer group. As the company continues to land additional clients and increases its revenue base, we expect the discount to narrow. -- "Since Mustang.com launched its first version of MMC in September 1997, revenues have increased from $331,000 during 3Q97 to $1.03 million during 3Q99, a 75% annual increase. We expect this revenue growth to continue due to the company's larger sales force, national expansion efforts, and the increasing market demand for e-mail management software. We estimate CY 2000 revenues to reach $10.1 million, up from our $3.6 million estimate for 1999 -- a 178% increase -- as a result of these initiatives. -- "We are initiating coverage of Mustang.com with a Strong Buy rating and a six-month price target of $25 based on 15.0x our FY00 revenue estimates, a 187% discount to its peer group." First Security Van Kasper makes a market in the shares of Mustang.com. First Security Van Kasper has managed an offering of this company's stock within the past three years and has provided financial advisory services to this company's management within the last two years. First Security(R) Van Kasper is a private brokerage and investment banking firm. Since its founding in 1978 as Van Kasper & Company, the firm has been providing exceptional services and original investment advice to a select group of investors and businesses. The firm's offices are located in San Francisco, Fresno, Los Angeles, San Diego, Newport Beach, San Jose, Sacramento, and Walnut Creek, California, as well as Phoenix, Arizona and New York City, New York. Investments made through First Security Van Kasper: (1) are not insured by the FDIC; (2) are not deposits or other obligations of, or guaranteed by FSVK, First Security Bank or any of its affiliates; (3) are not guaranteed by any Federal governmental agency (excluding U.S. Government and federal agency securities); (4) and are subject to investment risks, including possible loss of principal amount invested. The study on these pages is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed herein reflect the judgment of the author at this date and are subject to change without notice. Facts have been obtained from sources considered reliable, but are not guaranteed. Van Kasper & Company, its directors and employees and their families may have a position in the securities of the companies described herein, and may make purchases or sales while this report is in circulation. Additional information is available upon request. First Security Van Kasper publishes researches authored by Ms. Jordan, independent consultants, by special arrangement. SOURCE First Security Van Kasper -0- 01/27/2000 /CONTACT: Muller Luo of FS Van Kasper, 415-391-5600/ /Web site: fsvk.com (MSTG) CO: First Security Van Kasper ST: California IN: FIN MLM SU: RTG * end of story *