Bear Stearns Releases Results of Exclusive Webmaster Survey - Survey Provides Insight into Technology Adoption and Forecasts Accelerating Web Spending.

NEW YORK--(BUSINESS WIRE)--December 1, 1999--

Bear Stearns' Internet Technologies & Infrastructure analyst, Robert Fagin, today published the results of a comprehensive survey of professional Webmasters. The survey was designed to gauge the adoption of specific Web technologies and buying intentions. The survey results provide one of the most in-depth looks at Web site technology and infrastructure spending to date - and anticipate very robust growth in spending heading into 2000.

THE SURVEY

Surveys were sent to 5,014 professional Webmasters in an effort to gauge the adoption of specific Web technologies and buying intentions. Bear Stearns received responses from 117, providing an accuracy rate of +/- five percent. The majority (76%) of respondents directed Web efforts at smaller companies ($0-100 million in annual revenues). 99.7% of U.S. businesses have revenues in the $0-100 million range according to Dun and Bradstreet.

KEY FINDINGS

The survey provided data on Web site operating platforms and the size and growth of Internet, intranet and extranet budgets. The survey also provided a granular look at the components of Web budgets, including personnel costs, consulting costs, hosting fees, bandwidth costs, and hardware and software costs. Among the key findings of the Bear Stearns survey: Windows remains the dominant Web platform across all business sizes, with UNIX more prevalent as the size of the business increases.

Having grown 25% from 1998 to 1999, Web (Internet, intranet and extranet) budgets are expected to rise by more than 35% from 1999 to 2000, with Web site budgets of medium-sized businesses expected to increase the fastest (more than 150%).

Personnel continues to consume the largest portion of Web site budgets (26%). The top three Web budget costs are personnel, hosting fees and servers. In absolute dollar terms, all budget line items identified in the survey will climb year-over-year. Perceived barriers to the implementation of an Internet, intranet or extranet include:

Lack of funding Lack of qualified personnel Lack of support from corporate management

LOOKING TOWARD 2000

Overall, Web site budgets (Internet, intranet and extranet) are expected to grow more than 35% in 2000, versus 25% growth in 1999. Medium-sized businesses should see the most rapid growth - over 150%. Small and large-sized business Web budgets are anticipated to grow about 30%. In absolute dollar terms, all budget line items identified in the Bear Stearns survey are expected to see healthy growth in 2000. "We are extremely encouraged by the results of this survey," said Robert Fagin, managing director and Internet Technologies and Infrastructure analyst at Bear Stearns. "The data indicates very robust growth in Internet technologies and infrastructure spending in 2000 and bodes well for stocks in our coverage universe." Companies in Bear Stearns' coverage universe include the following: Adobe Systems (ADBE), Allaire Corp. (ALLR), Covad (COVD), Digital River (DRIV), Engage Technologies (ENGA), Inktomi (INKT), Macromedia Inc. MACR), Net2Phone (NTOP), Network Solutions (NSOL) and RealNetworks Inc. (RNWK). Persons interested in receiving the complete report and survey results may contact Chris Kwak at Bear Stearns. The report may also be accessed online at http://www.bearstearns.com.

Founded in 1923, Bear, Stearns & Co. Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE: BSC). With approximately $21.4 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers professional and correspondent clearing, including securities lending. Headquartered in New York City, the company has over 10,000 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, Puerto Rico and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Hong Kong, London, Lugano, Sao Paulo, Shanghai, Singapore and Tokyo. For additional information about Bear Stearns, please visit our Web site at http://www.bearstearns.com.

Any recommendation contained in this report may not be suitable for all investors. Moreover, although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. Bear Stearns may make markets and effect transactions, including transactions contrary to any recommendations herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have performed investment banking services for the issuers of such securities. In addition, employees of Bear Stearns may have positions and effect transactions in the securities or options of the issuers mentioned herein and may serve as directors of such issuers. Copyright (c) 1999. All rights reserved by Bear, Stearns & Co. Inc.