U.S. Bancorp Piper Jaffray Initiates Coverage of FAIM with a Buy Rating and $36 Price Target

Business Wire, April 10, 2000

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by U.S. Bancorp Piper Jaffray.

MINNEAPOLIS--(BUSINESS WIRE)--April 10, 2000

U.S. Bancorp Piper Jaffray Senior Business-to-Business e-Commerce Analyst Timothy M. Klein today initiated coverage of FairMarket, Inc. (FAIM- 24 3/4, (a), (b)), with a Buy rating. FairMarket is a leading enabler of Internet marketplaces by providing the commerce infrastructure, operating and support services and a highly branded distribution network to support dynamic-online auctions and other online marketplace formats.

"We are initiating coverage of FairMarket with a Buy rating," said Klein. "Combining a world-class technology platform with a unique network distribution model, we believe FairMarket is well positioned as the "arms dealer" to businesses for electronic marketplace services serving across business-to-consumer, consumer-to-consumer and business-to-business e-commerce environments."

"The company's customer base of over 90 leading merchants and portals are among the 'who's who' of online/offline brands (including MSN, Exciteand Lycos )," said Klein. "In addition, key performance metrics indicate increasing

traction among this segment and the tangible "network effect" impact of its distribution network. Given its leadership in this area, we believe the Company is well positioned to attain first mover returns."

"Our price target of $36 is based on a fiscal 2001 revenue multiple of 25 times the average multiple for a peer group of leading e-commerce enablers, including BeFree, Cybersource (a), Netcentives (a), and Go2Net (a)(b), among others," said Klein.

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