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To: sPD who wrote (147)	7/10/1998 11:40:00 PM
From: sPD	Respond to of 1341

"Mpact sets earning, revenue records" MARK MacKINNON, The Globe and Mail - July 10, 1998 Mpact Immedia Corp. yesterday reported a record quarterly profit and revenue. The Montreal company, which makes software for Internet commerce, earned $960,000 or 5 cents a share in the three months ended May 31 - the third quarter of the company's fiscal 1998. The year before, the company lost $455,000 or 3 cents over the same period. Revenue was also at a record high of $7.7-million for the quarter, up almost 25 per cent from $6.2-million the year before. Revenue from the company's network services side accounted for 85 per cent of the record total. Revenue has now risen for 27 consecutive quarters. The company's shares rose 20 cents to $15.20 on the Montreal Exchange. As recently as May, they traded for less than $10. Barry Engel, Mpact's vice-president of corporate affairs, said the company is starting to see a return on its investment in electronic commerce as consumers become comfortable with the Internet. We're very pleased -- we feel we've finally broken through, that electronic commerce is really here", Mr. Engel said. "We've invested a significant amount developing the products, and now we're starting see the fruits of our labours." So far this year, the company turned a profit of $l.l-million, compared with a $2.8-million loss through the first nine months last year. The 1998 profit translates into 6 cents a share, double what man analysts were predicting. [Note - the most any analyst had forecast was 3 cents, and that was for the complete 1998 FY, ending on August 31] Michael Deighton, an analyst who follows Mpact for Montreal's Groome Capital Inc., said part of the reason for Mpact's stock market success of late is that Internet companies, in general, are on a bit of a run. However, the market is also starting to realize the potential in electronic commerce, he said, and the Bell Canada deal is generally regarded as a good one for the company. Mpact shares traded under $10 as recently as May, before the Bell announcement. In June, Bell Canada agreed to buy 65 per cent of Mpact for $547.2-million. The deal is subject to shareholder approval, and is scheduled to close at the end of August. If it's approved, Bell will fold its electronic commerce arm, Electronic Business Solutions, into Mpact and inject $54-million in cash into the new unit. Mr. Deighton said the move will likely lead to costs that will show in the company's first quarter of fiscal 1999. "That's going to depress the quarter a little bit, but I think the market will ignore any little bumps and look beyond them," since the deal is considered good news, he said.

To: sPD who wrote (147)	7/10/1998 11:41:00 PM
From: sPD	Read Replies (1) \| Respond to of 1341

"Online retail stronger than expected" Even while shares of Amazon.com fell in trading again Friday, prospects for online retailing remain bright, according to one analyst and retailer. In some categories at least, online sales volumes are believed well ahead of the bullish predictions made last year. Forrester Research analyst Kate Delhagen said her estimate last October was that the sales for books and music on the web would hit $288 million. "Already, it looks like Amazon.com (AMZN) will hit that themselves," she told CBS.MarketWatch.com. Delhagen's estimate for computer hardware and software sales was $1.67 billion. Information that Forrester is getting from Dell Computer (DELL) "put us right on track," she said. Reports such as Egghead.com (EGGS) made Monday, that sales at one of its auction sites doubled from the first to the second quarter, "are supporting our case," Delhagen added. More ammunition for the bullish e-tail scenario also came from Reel.com chief executive officer Julie Wainwright. She told CBS.MarketWatch.com the online video retailer's business plan called for a five-fold sales increase this year, "and we're on plan," she said.