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To: KeepItSimple who wrote (46886)	3/23/1999 10:45:00 AM
From: H James Morris	Read Replies (1) \| Respond to of 164684

>>I recommend a nice chunk of Dell puts.<, Kis, I prefer gateway puts. Ted Waite want's to throw another $bil shares @ the Street. Now, he's another slut.

To: KeepItSimple who wrote (46886)	3/23/1999 2:40:00 PM
From: Glenn D. Rudolph	Respond to of 164684

8 would assign to a US origination. DoubleClick shared with us an example that one of the top 5 sites on the Web sent DCLK their log files to test the size of their international traffic. This site believed that 16% of their audience was coming from 10 countries outside the US. DoubleClick, using their IP database, showed the actual number coming from those 10 countries was 32%. This is one of the reasons why Sportsline has chosen DoubleClick to sell their International ad inventory. Not only can DoubleClick identify and target international inventory better, they can bring their international direct salesforce to bear for a US Web site who cannot afford to field a salesforce outside of the US. Again, we believe this is a win-win-win: for multi-national advertisers who want a one-stop advertising buy for the US and international, for publishers who want to monetize their (currently undervalued) international inventory, and for DoubleClick who participates in this revenue stream and adds to the breadth and depth of their inventory. If You Thought Microsoft Sidewalk Was A Good Proxy For Local Advertising… While Digital Cities, Sidewalk, Ticketmaster-Citysearch and others tout the local advertising opportunity aggregate eyeballs around local content, today DoubleClick can aggregate local eyeballs around any content. For example, the DoubleClick Network has 1million visitors from New York City per month. If you are a local car dealer, say Potamkin, would you rather reach NYC-based users when they are looking up local restaurant and movie information or when they are looking at car information on Autobytel or Kelley's Blue Book? And for which would you pay more? With DoubleClick Local, advertisers can target on a geographic basis (paying a higher CPM for a much more valuable buy) and publishers benefit because their inventory can get a higher CPM. On its own, a site would never have enough “local” inventory to offer a sizable population of users to anyone, but as the owner of an expanding network, DoubleClick has a large enough breadth (and fine enough comb to filter with) to offer a sizable “local” media buy on the Internet. With The Alta-Vista Overhang Gone, The Street Can Concentrate On What Matters DoubleClick management insists that Compaq isn't interested in owning a #10 portal and wants to grow the property into a formidable competitor to Yahoo!, MSN, and AOL. Prima facie, this statement seems supported by Compaq's recent actions on this front (the purchase of Shopping.com and Zip2) and the tacit implication that Compaq has some more announcements/deals up their sleeve. Even if Compaq doesn't materially change the Media Metrix ranking for Alta-Vista, the DoubleClick business probably won't suffer much. Net-net, Alta-Vista is neutral at worst, and very positive at best to DCLK. The Model Stays The Same…For Now We're not making any changes to our model for 1999 or beyond, though clearly we believe that the visibility of the results (particularly revenue) increases nicely. We're going to keep our powder dry until DoubleClick reports their March quarter sometime in the middle of April. It's important to recall that management's insistence on the idea that investment, not profits, is key to deriving the greatest economic value from their Internet advertising opportunity. As such, they remain in investment mode; expect S&M and R&D to have nice increases as DCLK continues to expand internationally and as the Closed Loop products/services roll-out. Valuation Goes Up On Visibility And Competitive Advantage Though we're not changing our model assumptions at this time, there can be no doubt that the visibility of and confidence in the top line here reduces the risk associated with the