To: Sandra who wrote (10647 ) 1/29/1999 8:54:00 PM From: puborectalis Respond to of 90042
Ziff-Davis Inc. is a leading integrated media and marketing company focused on computing and Internet-related technology. We provide global technology companies with marketing strategies for reaching key decision-makers. From an accounting standpoint, we have separated our online business division (which we call the "ZDNET GROUP" or "ZDNET") from the rest of our businesses (which we call the "ZD GROUP" or "ZD") and we have allocated all of our consolidated assets, liabilities, revenue, expenses and cash flow between ZD and ZDNet. Our principal executive offices are located at One Park Avenue, New York, New York 10016. Our telephone number is (212) 503-3500. ZDNET ZDNet is our online business division and is a leading provider of technology-related content to Internet users worldwide. ZDNet focuses on content, community and commerce. ZDNet creates real-time, authoritative and comprehensive branded content divided broadly into "channels" that focus on specific topics or audience groups. ZDNet's network of over 60 interconnected sites offers over 800 news stories per month, 39,000 product listings, 30,000 product reviews and 12,000 downloadable programs. The community of ZDNet users interacts through bulletin boards, chat rooms, moderated forums and e-mail. ZDNet facilitates commerce by providing users with the ability to evaluate, compare and purchase products and services and by providing advertisers and merchants with access to a highly targeted user group with attractive demographics. According to Media Metrix, in October 1998 zdnet.com ranked first among all Web sites in the category of news, information and entertainment, ahead of such sites as cnet.com, cnn.com, msnbc.com, Disney Online and espn.com. ZDNet estimates that its Web sites served more than 185 million page views during October 1998, up from 105 million in October 1997. ZDNet delivered approximately 386 million ad-bearing pages during the third quarter of 1998, up from 182 million during the same period of 1997. In addition, ZDNet had localized editions in more than 16 countries as of September 30, 1998. The growing acceptance of the Internet as a mass medium parallels the increasing role of technology in everyday life. According to Dataquest, the worldwide market for information technology products is expected to be approximately $1 trillion in 1998 and grow 10% to 15% annually over the next five years. The prevalence of technology and the growing number of technological choices heighten the demand for up-to-date, comprehensive information about technology-related products and services. ZDNet's objective is to be the leading online content site focused on technology products and services and the preferred online platform for advertisers and merchants. ZDNet's strategy is to: . continue to offer differentiated technology-related content, . grow ZDNet's user community, . build ZDNet's brand strength, . increase advertising and commerce revenue, . strengthen and expand strategic alliances and . extend ZDNet's international presence. ZDNet derives many benefits from its relationship with ZD, including the ability to leverage the ZD brand, access content from ZD publications and cross-market across all of ZD's platforms. ZDNet's revenue has grown from $13.6 million in 1995 to $32.2 million in 1997 and was $37.6 million in the first nine months of 1998. ZD ZD includes: . The following Company businesses: print publishing, trade shows and conferences, market research, education (including ZDU, our Internet- based educational service) and television (including an online component). . A Retained Interest in ZDNet. This Retained Interest is currently 100%, but will decline to reflect the initial issuance of ZDNet Stock as well as any future issuances.