Dain Rauscher Wessels Examines Factors Converging in Digital Infrastructure Sector.

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by Dain Rauscher Wessels

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 27, 2000

A digital revolution is under way as a growing number of companies are being founded and funded to provide Internet infrastructure - such as enabling technologies, software applications, platforms and services - that allows for secure, scalable and cost-efficient distribution of content over the Internet, according to Tonia Lee, equity analyst at Dain Rauscher Wessels.

Lee, who today issued a report, "Digital Infrastructure: Evolution of an Industry," believes several factors are converging to create a compelling opportunity for investors who are focused on the digital infrastructure sector.

-- Content Piracy Nearly Equals Legal E-Commerce - As sales from content piracy
approach levels of legal e-commerce, a growing number of content owners have
made the deployment of secure digital distribution strategies a priority.

-- Compelling Cost Savings and Efficiencies Created by Digital Distribution -
With respect to distribution, physical channels that exist today are not only
complex but also expensive when compared to digital distribution channels.
Digital distribution strategies facilitate the distribution of content with
copyright and patent protection and create advanced selling opportunities. It
also requires no physical shelf space for inventory and facilitates the
real-time exchange of information among all links on the distribution chain.

-- Faster Pipes Delivered by Broadband and DSL Access - Enhancements to
bandwidth and broadband access should significantly expand the market for
digital goods distribution.

-- Multiple Vertical Markets - In addition to the traditional entertainment,
music and film industries that produce high volumes of content, other
industries - such as financial services, software, healthcare and e-learning -
represent large and untapped vertical market opportunities.

-- Accelerating Growth Opportunity - Faced with lost revenue from piracy,
complex distribution channel relationships and missed selling opportunities,
content owners and publishers now have a growing sense of urgency to develop
digital distribution strategies.

Digital Infrastructure Recommendations

Lee currently rates the following digital infrastructure companies:

-- InfoSpace Inc. (NASDAQ: INSP), $30.06, Strong Buy-Aggressive

Risk rating. Lee's 12-month price target is $83.

-- Internet Pictures Corp. (NASDAQ: IPIX), $5.88, Strong

Buy-Speculative Risk rating. The 12-month price target is $35.

-- Liquid Audio Inc. (NASDAQ: LQID), $4.50, Buy-Speculative Risk

rating. The 12-month price target is $30.

Institutional investors interested in receiving more information should contact their Dain Rauscher Wessels salesperson. Media interested in receiving Lee's report should call 612-371-7752.

The Dain Rauscher Wessels division includes equity research, equity trading, institutional equity sales and corporate finance. The division's 38 analysts focus on five industries: technology, consumer, energy, financial services and healthcare. Currently, the analysts follow more than 400 companies. DRW, which employs more than 425 people, has offices in Atlanta; Austin, Texas; Boston; Chicago; Dallas; Houston; Minneapolis; Menlo Park, Calif.; New York City; Paris; San Francisco; Seattle; and Tel Aviv, Israel.(a)

Minneapolis-based Dain Rauscher Incorporated provides investment services to individual investors and small businesses, investment banking services to corporations and municipalities nationwide, and trade clearing and settlement services to nonaffiliated broker-dealers throughout the United States and abroad. Dain Rauscher Incorporated, one of the nation's largest full-service securities firms, is a member of the New York Stock Exchange and other major securities exchanges, as well as the Securities Investor Protection Corp. Dain Rauscher Corporation, its holding company, trades on the New York Stock Exchange under the symbol DRC. The firm's headquarters are located at Dain Rauscher Plaza, 60 S. Sixth St.

Dain Rauscher Inc. makes a market in InfoSpace, Internet Pictures and Liquid Audio, and may act as principal with regard to sales or purchases of these securities. In addition, Dain Rauscher Inc. managed or co-managed a public offering of these securities within the past three years.

Additional information on the securities mentioned is available on request. This does not purport to be a complete statement of all material facts related to any company, industry or security mentioned. The information provided, while not guaranteed as to accuracy or completeness, has been obtained from sources believed to be reliable. The opinions expressed reflect our judgment at this time and are subject to change without notice and may or may not be updated. DRI, its officers, directors, affiliates and/or employees (including the authors of this report) may from time to time have a long or short position in publicly or privately issued securities of companies mentioned or derivatives thereof and may sell or buy such securities for their own or related accounts. This notice shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

(a) Strategic alliance with Tamir Fishman & Co.