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Biotech / Medical : Stayhealthy.com: Monitoring your wellness on the Web -- Ignore unavailable to you. Want to Upgrade?

To: Fred Ragan who wrote (967)	10/2/2000 10:13:37 PM
From: joeystockmarket	Read Replies (1) \| Respond to of 3785

Fred, I would have to guess that Stay RECEIVED cash and mylife.com stock for giving idealab! an equity position. I would be shocked to see stay giving up any hard to come by cash. maybe you should call the company and see, i'd be interested as well. Will be thrilled if Stay got money, will be pissed if stay gave away money. Let's find out. Usually incubators invest in companies, so i would imagine idealab gave cash and stock of mylife for this deal. Anybody out there know the terms????? Stayhealthy.com, MyLife.com to Fold Into Health Web Site By KAREN KAPLAN, Times Staff Writer Stayhealthy.com, a health-related Web site based in Monrovia, will announce today that it will acquire fledgling Idealab start-up MyLife.com. Idealab, the Pasadena-based Internet incubator that launched EToys and Goto.com, will receive a "significant equity position" as a result of the cash and stock deal, the companies said. The value of the deal was not disclosed. Stayhealthy.com sells devices that allow individuals to track their blood pressure, cholesterol, body fat and other measurements. The site also includes news, drug information, a calorie counter and a discussion board. MyLife.com's site features surveys and other interactive aids to help visitors stay healthy, and they will be folded into the 5-year-old Stayhealthy.com site. Stayhealthy.com Chief Executive John Collins will continue to run the company, and MyLife.com founding executive Drew Skarupa will become its chief financial officer. The company will have 35 employees when the acquisition is complete.

To: Fred Ragan who wrote (967)	10/3/2000 2:46:36 PM
From: Eric Fader	Respond to of 3785

Fred - Here's my personal take on the idealab! deal. I understand that Stayhealthy needed about $10 million to fund its product rollout. Until now, unlike most "IPO track" private companies, Stay had managed to avoid giving away a large chunk of itself to venture capital firms in exchange for necessary financing and what the VC firms believe is their valuable guidance. In my view, this somewhat daring but very wise strategy took Stay to the brink of being "IPOable" with financing virtually entirely from private investors and with a relatively small number of shares outstanding. Unfortunately, after the dot-com and e-health selloffs that began in April, prevailing valuation models changed such that a company now needs to show a certain level of revenues, and a "clear path to profitability," in order to be taken seriously and valued appropriately by underwriters, venture capital firms and other institutions. Stayhealthy management determined that it would rather build the company and create substantial revenues before attempting an IPO in an iffy market. Stay was unable to raise the needed $10 million from its existing shareholders or new private investors and, with early orders for the BC1 several times the level that had been expected, finally had to turn to the venture capital market for funds to meet the demand for the products. Stay management judged that the proposal by idealab!, which is really functioning more as a VC firm than a classic incubator in this instance, was preferable to the financing offers available elsewhere in the current environment. idealab! has powerful investors, partners and underwriters that should all benefit Stay going forward, IMO. Although the purchase of mylife.com partially obscures the other terms of the transaction, I understand that Stay will be receiving the cash it needs in the short term. Press coverage of the company and its products is beginning to snowball, and I expect the association with idealab! (which is already in registration for its own IPO and enjoys "healthy" press coverage) to be a big help in this regard. I'm also confident that Bill Gross shares my desire for a successful Stayhealthy IPO at the earliest advantageous time. With the financing issues out of the way, I expect that a new stream of announcements from Stayhealthy regarding business developments will begin shortly.