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To: Glenn D. Rudolph who wrote (140932)	3/26/2002 9:11:14 AM
From: H James Morris	Read Replies (1) \| Respond to of 164684

>>I do not know the answer to this either. I can't figure out why consumers pay a business to shop whether it is Costco, Sam Club, etc.<< I think its twofold. (1) Costco members see themselves as members of an exclusive club. (2) The members truly believe they're getting the best deal with what Costco sells. Btw I do know this. A Costco member goes to Costco to buy a $10.00 garden hose, and might walk out spending $1000 dollars.:)

To: Glenn D. Rudolph who wrote (140932)	3/26/2002 9:26:28 AM
From: H James Morris	Read Replies (1) \| Respond to of 164684

Tuesday, March 26, 2002 By JOHN COOK SEATTLE POST-INTELLIGENCER REPORTER Onvia.com Inc., a once-high-flying Internet company that raised $168 million in an initial public offering in March 2000, is giving nearly $30 million in cash back to shareholders because it no longer needs the money. The move is unusual given that dozens of Internet companies have collapsed recently after either running out of money or failing to raise additional capital. But that is not the case with Seattle-based Onvia.com, which after several layoffs and a corporate restructuring is still sitting on a cash hoard of $70 million. "We have spent a lot of time in the last nine months looking at strategic alternatives," said Clayton Lewis, president and chief operating officer at Onvia. "As we looked at the question, we thought $70 million is far in excess of what we need to successfully operate this business." The 6-year-old Seattle company plans to distribute 39 cents per share to stockholders May 3. After the cash distribution, Onvia will have about $40 million in cash. The stock closed yesterday at 41 cents per share, down 3 cents. In after-hours trading, it rose as much as 39 percent, settling at 59 cents a share. Onvia.com's decision to give money back to shareholders is yet another sign of the changing economic climate. Two years ago, when Onvia.com raised $168 million in a spectacular IPO, Internet companies were consuming cash rapidly as they hired employees, expanded overseas and built new products. The mantra of the day was "Get Big Fast," and entrepreneurs spent liberally as they attempted to rise above the clutter of competitors. Today, the environment couldn't be more different. Onvia.com, for example, dramatically altered its business strategy beginning last year. It cut employees, reduced office space and exited the business-to-business e-commerce sector that was at the core of its strategy. Now focused on helping businesses secure government contracts over the Internet, the 88-member company no longer needs the capital that it did when it had 500 employees and was selling office products and playing host to other companies' Web sites. It is also planning to turn a profit in the fourth quarter, yet another reason that not as much money would be needed going forward. Onvia.com's board of directors considered keeping the cash in the bank. But Lewis said the board decided that distributing the cash would increase shareholder value. Shareholders have not been happy with the company's performance lately. The stock, which closed at $61.50 on its first day of trading as a public company, has lost 98 percent of its value in the past two years. Since June, the stock has traded below a dollar. At least four shareholder lawsuits have been filed against the company. And last month, Nasdaq notified the company that the stock was in danger of being kicked off the stock exchange for not meeting minimum listing requirements. Tom Madden, co-founder of the IPO Monitor research site, said Onvia.com's decision to give back capital to investors is unique. "I've never seen this before," Madden said. seattlepi.nwsource.com