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To: Glenn D. Rudolph who wrote (43032)	2/28/1999 6:37:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Victoria's Secret site learns sex sells online - Feb. 2, 1999 Sex online gets traffic, but not investors - Dec. 4, 1998 More Quotes.... NEW YORK (CNNfn) - A month-old company vying to be one of the first publicly-traded Web sites to feature adult entertainment delayed its federal filing Friday. The company said that it had run into a technical snafu. EFox.net Inc. said incompatibility of word-processing software used by its lawyer and its accounting firm will have to be cleared up before the adult entertainment site operator can file a Securities & Exchange Commission registration statement. The one-person, Bethesda, Md.-based company just last Monday launched an Internet site aiming to draw male visitors with features including nude women, as well as car, sports and stock forums. EFox does not have an underwriter for its IPO. Rather, the company will use SEC regulations which allow smaller companies to take themselves public. The filing will come against a relatively quiet backdrop for online adult sites on Wall Street. Some sites have made enough money that they don't need stock-market financing; others have run into resistance about bringing into a public arena what many see as salacious material. At the same time, investors have been ravenous about other Internet properties, such as bellwether players Yahoo, America Online, and Amazon.com. While those sites boast impressive traffic, unquestionably the Internet's erogenous zones have been among the most alluring sites for the Web surfer. "It has been ignored because Wall Street doesn't want to be associated with this type of business," Ralph Amato, chief executive officer of BoysToys.com, an budding online adult entertainment site, said. "Eventually it will become acceptable," he added. "There are huge valuations for [other] Internet stocks, but they're not profitable. Ours is a profitable industry." Efox.net will offer 1.25 million shares to the public at $6 a share, in a plan designed to garner $7.5 million, a modest sum by the standard of today's Internet IPO market. That's because EFox.net, the brainchild of former marketing executive, Joseph Preston, Chief Executive Officer, is small enough to use a SEC rule to bring itself public - and, with some luck, catch the wave of interest in Internet issues. According to its site, the company will use proceeds to "attract the most beautiful ladies on the planet" and to pay for its marketing and business goals. In an effort to attract investment, EFox.net posted on its web site: "If you like our business model, believe in our brand and understand the fact that SEX SELLS, please do not hesitate to invest in our company." The technology research firm Forrester Research estimates that the Internet-based adult entertainment market generates between $750 million to $1 billion a year. Most collect money from subscriptions, ranging from about $9.95 to $29.95 per month. Seth Warshevsky, founder of Internet Entertainment Group which collected revenue of about $50 million last year with a number of sites, is in talks with three investment banks. But his efforts have run into resistance. "You're dealing with something that's very mainstream: Wall Street," said Warshevsky. "Adult content is going to run into resistance." The lure of sexy online content has gained a higher profile recently, particularly after lingerie vendor Victoria's Secret, a division of Intimate Brands Inc., drew more than 1 million web page views in one hour after its Super Bowl advertisement for an Internet fashion show.