Internet Stock Enthusiasts,

Thank you for using InternetCap.com, where you receive free monthly Internet stock profiles. Register today and have new profiles emailed to you directly. The Internet sector has been down recently, but we are expecting a rebound in the next few months. With no further delay, we are proud to announce this month's profile, Flycast.

Flycast is the leading advertising network for mid-sized web sites. Web based advertising is expected to grow ten fold in the next four years, and Flycast is poised to capture this intense growth. Just last quarter they have tripled their hardware capacity and added ten employees to their small staff of seventy. Also, Flycast reaches 41% of the web users and have just increased sales 441% from the same quarter last year and 25% from last quarter to 1.876 billion impressions. We have chosen Flycast because of it's unique strength in banner advertising and because they have just announced they are extending their business model to include the growing but chaotic realm of email marketing.

Flagship Product: Banner Advertising

Flycast's big competitors, such as DoubleClick, are targeting branded (large websites) to generate sales. FlyCast's CEO, George Garrick, has recently responded to this business model, "the difference is that if it's non-branded, the publisher doesn't expect a premium for their brand name. Therefore, that premium doesn't have to be paid out by higher performance. So I can sell ad space that's non-branded at $5 per 1000 impressions, and if there's a Web site that has a well known brand name and wants to charge $30, the break-even is that your ad has to do six times as well on their site as it does on my site." The truth is that no banner ads do six times as well. Companies like DoubleClick are using very traditional business models by selling the prestige of a brand name, but Flycast is strictly ROI (return on investment) based. This is why Flycast is targeting mid-sized websites. With mostly horizontal growth in the Internet sector and dozens of Internet IPOs each month, it seems unlikely that the advertising networks will continue to ignore this growing market, but Flycast has the definite lead.

FlyCast Innovation: eDispatch

In short, eDispatch provides efficiency in the chaotic world of opt-in email advertising. Today, email advertising is fragmented with thousands of websites and their own policies for choosing email advertisements. This causes advertisers to spend an enormous amount of time and money negotiating and tracking their results from the multitude of websites that they have diligently negotiated with. The FlyCast CEO, George Garrick, has recently said "Email is the ultimate direct response medium and Flycast is uniquely positioned to leverage its potential. Flycast eDispatch is a natural extension for the company as we strengthen our position as the leader in ROI-based Internet marketing. Our goal is to be the one-stop shop for interactive direct response solutions and email is an integral part of our services going forward." Flycast's eDispatch will define a set of standards for pricing, packaging and delivering email solutions to results based advertisers. The rollout for eDispatch should begin in September and go through four phases ending in June 2000.

Opinion

Flycast is over ten times smaller than DoubleClick (see industry chart below), but don't let size fool you. DoubleClick and other big banner ad companies have been ignoring the market for mid-sized clients, instead they have been chasing after the big web sites for their advertising dollars. Remember that the Internet is growing mostly horizontally, meaning that growth is coming from the small specialized web sites, not the conglomerates. Flycast has a growing infrastructure, product base, and customer base. Flycast is proving itself to be a leader and an innovator and could someday be ranked with the top along with other innovators such as Amazon.com or Yahoo!

More Information

Additional reports are available ($10-$100) through

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Visit the Flycast website:
http://www.flycast.com/

Investor FAQ:
http://www.flycast.com/investor_relations/ir-faq-index.html

Investor Relations:
Carolyn Bass or Jim Byers Morgen
Walke Associates
44 Montgomery Street
San Francisco, California 94104
Phone: (415) 296-7383
Fax: (415) 296-0446
flycast_info@mwa-sf.com

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