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To: Jerry Olson who wrote (19257)	10/1/2001 2:46:41 PM
From: Bob Biersack	Read Replies (2) \| Respond to of 208838

Pick up ..ALR...for AMMO!!

To: Jerry Olson who wrote (19257)	10/1/2001 2:57:01 PM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

I'll try to catch the next pop for GNSS ...but was shorting PXLW last friday's close ... looks like PayPal doing an IPO : Paypal's Filing for IPO Will Challenge Credit Card Networks' Empire On the Internet Business/Technology Editors NEW YORK--(BUSINESS WIRE)--Oct. 1, 2001-- Celent Communications believes prospects for Paypal are strong and that existing credit card issuers will lose close to US$400 mn to email payments in coming years On September 28th, 2001 Paypal, the US email payment leader, filed its registration statement for an IPO. While most e-payment ventures have stumbled over the past few years, Paypal has kept growing at a rate of 18,000 new users a day to reach 8.5 million users, expecting to handle 3.5 billion dollars in transactions in 2001. "Paypal's filing heralds an increased challenge to existing credit card issuers for Internet payments" comments Gwenn Bezard, the analyst covering the payment industry at Celent Communications. Born as a nimble start-up in 1999 in the Silicon Valley, it was originally focused on an elusive market (Palm Pilot money beaming); Paypal changed its plans and entered the email payment arena, whose adoption skyrocketed in early 2000 on ebay auctions. Having continued to thrive despite the bursting of the Internet bubble and the slowing of the US economy, Paypal has dwarfed its banking competitors, and has become a concern for all of those active in the credit card business. By 2003, Celent Communications expects financial institutions will to lose $375 mn in credit card transactions because of email payment schemes. "Paypal is well positioned to successfully go public, preserve its 90% market share and meet profitability targets in the short term" adds Gwenn Bezard. Because of a lack of superior value proposition, Paypal's current competitors are unlikely to succeed in the mid-term. The failure of Paypal's exiting competitors does not, however, mean that Paypal's path is entirely clear. After going public, Celent Communications believes Paypal will need increasingly to comply with domestic and foreign regulations, preserve its brand, place more emphasis on security, and is likely to face competition from new, disruptive payment schemes. "Although Paypal is not yet threatened by its competitors, Paypal will face direct assaults from credit card networks reacting to the cannibalization of their revenues in the next 2 to 3 years" according to Gwenn Bezard. Because of the reactive and opportunistic culture of the management, Celent Communications believes, however, that Paypal has the capacity to face these challenges. The sluggish economy has dramatically raised the entry barriers to competitors, as venture capital has become scarce and well-funded companies have been busy cutting costs. "Oddly, the slowing economy and technology bubble burst are Paypal's strongest allies" conludes Gwenn Bezard. --30--af/bos* CONTACT: Celent Communications +1.212.490.2223 gbezard@celent.com KEYWORD: NEW YORK INDUSTRY KEYWORD: BANKING COMPUTERS/ELECTRONICS E-COMMERCE INTERNET SOFTWARE SOURCE: Celent Communications