GartnerGroup's Dataquest Finds 15 Million Americans Doing Online Investing Activities.

NORWALK, Conn.--(BUSINESS WIRE)--May 11, 1999--

Less Than 4.5 Million Actually Buying and Selling;

Only 6 Percent Average More than an Hour a Day with Online

Investing Activities

Nearly 15 million adult Americans are involved in online investing activities in one way or another (tracking portfolios, getting advice/information, or buying/selling), but less than 4.5 million actually buy or sell online, according to consumer research at Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT).

In reviewing results from a December 1998 survey of 16,500 households and a follow-up March 1999 survey of more than 550 online bankers and investors, Dataquest consumer research analysts found that 12.8 million adults track their investments online and 10.8 million get investment advice and information online.

Although the level of media attention might lead one to believe that the United States is becoming a nation of at-home online investors, spending every waking hour frantically buying and selling stocks, such a perception is definitely not borne out by the facts.

"By our definition, only eight percent of online investors qualify as 'heavy' investors, going online more than 30 times a month to perform investing activities," said George Barto, senior industry analyst at Dataquest. The survey further found that a third of online investors connect "casually"--from one to five times a month--to do investing activities, and 57 percent connect "regularly"--from six to 30 times a month.

In terms of time spent in online trading activities, survey results showed that 53 percent of online traders averaged four hours or less a month in online investment activities. Only six percent of online traders averaged more than an hour a day pursuing trading activities online.

When respondents were asked why they don't buy or sell stocks online more often, 45 percent said they saw no need, 34 percent said they were concerned about privacy/security issues, and 22 percent said it was too difficult.

"Online investing is still in its infancy, so the general experience level is very low," Mr. Barto said. "There is still a great deal of work to be done in probing the relationship between how long a respondent has been doing online banking or investing and how that affects his or her perception of its difficulty."

Mr. Barto suggested that as online trading (actual buying and selling) matures, it will follow a growth pattern similar to what online banking is experiencing. Online banking exploded after banks greatly simplified the process. In fact, more than half of the Americans currently doing online banking started after the beginning of 1998.

Asked what motivated them to become online investors, "anytime access" was the most popular response (78 percent), well ahead of "lower cost" (57 percent), and anywhere access (32 percent).

Data for the survey was generated from an 8-page, 60-item questionnaire completed by more than 550 nationally representative U.S. households. The households had been identified through an earlier screener interview of 16,500 U.S. households as having participated in online banking or online investing.

GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. In April 1999, GartnerGroup augmented Dataquest's consumer research capabilities with the acquisition of INTECO Corporation, a market intelligence firm that forecasts consumer habits and attitudes toward a variety of interactive technologies including PCs, the Internet, online services, interactive TV, based on detailed interviews with thousands of households every year.

As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, and consulting. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community serving Fortune 1000 clients from 80 locations worldwide. Additional information about the company is available on the Internet at http://www.gartner.com.

(Note to editors. George Barto will expand on findings from the above survey during a teleconference May 13th. The one-hour conference will begin at 11 a.m. and be repeated at 2 p.m., EDT. For media information on accessing the conference, contact Anabela Jesus at 203-866-4400 ext. 10.)