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Microcap & Penny Stocks : Tech Squared (TSQD)- Internet Commerce -- Ignore unavailable to you. Want to Upgrade?

To: Brian K Crawford who wrote (215)	4/29/1998 11:03:00 PM
From: Brian K Crawford	Respond to of 2752

FWIW....a very rough attempt to value TSQD holdings in Digital River, using a price to sales approach: ================================================== First section is Digital River only (no TSQD)... Est. Quarterly Data Mar 98 ============== Sales $3,000,000 ** Shares out (est) 2,609,000 Sales/Share $1.15 Sales/Share4 $4.60 (annualizing quarterly sales) Est value per Digital River Share @ X times annual Sales: X = 5 $23 X = 10 $46 X = 25 $115 Total Digital River Mkt Cap (000) at Price-to-sales = X = 5 $59,800 X = 10 $119,600 X = 25 $299,000 ============================================ Following section is TSQD.... TSQD Holdings Value @ 23% of Total X = 5 $13,754 X = 10 $27,508 X = 25 $68,770 (Joel Ronning owns about 70% of TSQD, if I remember correctly) Value Per TSQD Share @ 10,374,870 shares outstanding: X = 5 $1.33 X = 10 $2.65 X = 25 $6.62 Note: * Backed into outstanding Digital River shares based on TSQD option of 600,000 shares representing 23% of Digital River outstanding stock. ============================================== Rambling and speculative thoughts: 1.Sales have been growing at a rate of 100+% sequentially quarter over quarter. (See my post #36 for historical data). Digital River says they are currently doing $1 million per month sales. If they can do $2 million per month in sales for the June quarter with no further dilution, all figures above...well you can do the math... 2.TSQD was selling in the area of half a buck per share before Digital River came into the picture. So add $.50 to get total TSQD valuation. 3. Quoting from the Minneapolis/St Paul City Business Journal article "The company, which distributes software and other digital products over the Internet, has meanwhile seen its trickle of clients grow to a flood, and with the ink on its most recent $13-million-plus private placement not yet dry, Digital River is already looking forward to a possible initial public offering (IPO) later this year." If I understand correctly, they have raised $13 million thru the issuance of 1,609,000 shares. Average net proceeds per share = $8.08 !?!?! 4. Note: Price to sales ratio for some e-commerce companies at 1/98: Amazon AMZN 9.4 N2K NTKI 26.1 Feel free to compliment...or blast away.... at any and all of the above. Brian

To: Brian K Crawford who wrote (215)	4/29/1998 11:14:00 PM
From: Brian K Crawford	Read Replies (1) \| Respond to of 2752

Digital River Raises $13 Million in Private Placement and Venture Capital MINNEAPOLIS, April 27 /PRNewswire/ -- Digital River, Inc., the leading provider of e-commerce and data center management for companies selling software on the Internet, announced today that it has received net proceeds of $13 million from its recently completed private placement of common stock in combination with venture capital financing. The company said net proceeds from the offering, which began last November, totaled $10 million. It received an additional $3 million in venture capital from Wasserstein Adelson Ventures L.P., New York, a venture capital fund managed by the investment banking firm Wasserstein Perella & Co. Joel Ronning, president and chief executive officer of Digital River, said planned uses for the proceeds include an expanded marketing program targeting additional software vendors and online dealers relationships. The company also plans additional equipment purchases to build further system redundancy and performance capacity. "Digital River has quadrupled its client base in the past year -- from less than 300 to more than 1,200 software publishers and online dealers," Ronning said. "We anticipate continued growth in the months ahead -- both in numbers of clients and in the volume of Internet software sales they are generating." Digital River, Inc., based in Minneapolis, offers the world's largest online database of software products. It partners with software publishers and on line dealers to implement its proprietary technology for Internet delivery of software and other digital products. The company has 12 patents pending, covering digital delivery, commerce and encryption systems. Tech Squared, Inc. (OTC Bulletin Board: TSQD), controls 23 percent and Fujitsu Limited of Japan owns 16 percent of Digital River's common stock. For more information visit the Digital River Web site at digitalriver.com SOURCE Digital River, Inc. CO: Tech Squared, Inc.; Digital River, Inc. ST: Minnesota