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To: Jan Crawley who wrote (36744)	1/26/1999 3:16:00 PM
From: re3	Read Replies (1) \| Respond to of 164684

do shareholders not have rights... H

To: Jan Crawley who wrote (36744)	1/26/1999 3:28:00 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

>>NEW YORK, Jan 26 (Reuters) - AltaVista, the Internet navigation unit to be spun off by Compaq Computer Corp. <CPQ.N>, plans to become one of the top three electronic commerce players by 2002, AltaVista's new CEO said on Tuesday. Rod Schrock, the newly-named president and CEO of AltaVista, set forth ambitious financial goals for the soon-to-be independent company at a news conference held here. The AltaVista executive sees the company blending the financial virtues of leading Internet destination Yahoo! Inc. <YHOO.O> and electronic-commerce juggernaut Amazon.com <AMZN.O>. AltaVista had operated at a break-even level in terms of financial results until the third quarter of 1998, but heavy investments aimed at making the company a major Internet player will result in losses for the next two years, Schrock said. AltaVista will concentrate on boosting revenues, which a spokesman said hit $40 million in 1998 and ended the year at a $50 million revenue run-rate. Schrock said the addition of Shopping.com <IBUY.OB>, which Compaq has agreed to buy and merge into AltaVista, will help double or triple 1998 revenues by the end of 1999. He said AltaVista's business model called for gross profit margins of roughly 30 percent of revenues compared to Amazon.com's recent margins of around 20 percent. He also said AltaVista's operating income as a percent of revenues would be around 18 percent compared to Yahoo!'s 55 percent and Amazon.com's roughly 15 percent. AltaVista's plans to take aim at Yahoo and Amazon.com appeared to be seized on by investors as further vindication of the future potential for electronic commerce, as all stocks gained. Compaq gained more than $2 by mid-afternoon in composite New York Stock Exchange trading, where it was the second most active issue. Yahoo stock gained $29.75 to $341.50, while Amazon.com rose $2.62 to $115, both in active Nasdaq trading. 14:14 01-26-99