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Technology Stocks : DrugStore.com -- Ignore unavailable to you. Want to Upgrade?

To: Lwbolles who wrote (4)	5/22/1999 1:52:00 PM
From: $Mogul	Respond to of 60

RE: DSCM Yes LMG.A has some very nice holdings. I have a longterm position in LMG.A. I also like their (IATV) ACTC holding and have a direct investment in it.

To: Lwbolles who wrote (4)	5/24/1999 3:17:00 AM
From: $Mogul	Read Replies (2) \| Respond to of 60

Monday May 24 1:32 AM ET Internet Retailer Drugstore.Com Plans IPO By Martin Wolk SEATTLE (Reuters) - Online pharmacy drugstore.com Inc. plans an initial public offering of stock that could raise up to $67.5 million, the company said in a filing with regulators. The filing came just three months after the suburban Seattle company threw open its virtual doors with the strong backing of online giant Amazon.com Inc., its largest shareholder. The company also disclosed in the filing that it received a $40 million investment this month from Vulcan Ventures, the investment vehicle of billionaire Paul Allen, co-founder of computer software giant Microsoft Corp. (Nasdaq:MSFT - news) The filing Thursday with the U.S. Securities and Exchange Commission reports that the company sold $652,000 in health, beauty and pharmacy products in its first 40 days of operation. The goods were sold slightly below cost for a gross loss of $20,000 in the quarter ended April 4. Including operating expenses the company had a net loss of $10.2 million in the quarter and since its founding in April 1998 has lost more than $17.7 million. In addition to the public offering, drugstore.com plans to sell an additional $10 million worth of common stock to Amazon.com, which took a 40 percent stake in the online pharmacy in February. Vulcan Ventures also will get a significant equity stake in the form of preferred stock under terms of its convertible promissory note. The SEC filing details the extent to which Amazon.com's ownership imposes limits on drugstore.com's operations. Under terms of the technology sharing and cross-promotion agreement between the two companies, drugstore.com has agreed not to promote, accept advertising from or link to any Web site that competes with Amazon.com. That includes an ever-growing list of retailers selling books, music, videos, gifts or auction services online. Drugstore.com also has a strategic alliance with online health care services provider Healtheon Corp. (Nasdaq:HLTH - news), which announced plans Thursday to acquire WebMD, another Internet-based service provider for consumers and professionals, in a $10 billion deal. Drugstore.com's IPO is being managed by Morgan Stanley Dean Witter, Donaldson, Lufkin & Jenrette and Thomas Weisel Partners.