Jupiter's 1999 Revenues SOAR to $38 Million, FUELED by 244% Rise in Contract Value; Internet Research Company at 219 New Clients in Fourth Quarter - Company Financial Information

Edge: Work-Group Computing Report, Feb 14, 2000

Jupiter Communications, Inc. (Nasdaq: JPTR), the worldwide authority on Internet commerce, Monday announced exceptional growth in key performance metrics for the fourth quarter and the fiscal year ended December 31, 1999.

-- Contract value increased 244% to $40.1 million as of December 31, 1999 versus $11.7 million as of December 31, 1998.

-- The number of client contracts for Jupiter's core research services rose 134% to 987 from 421 at the end of 1998.

-- Average contract size increased 47% to $41,000 as of December 31, 1999 from $28,000 at year end 1998.

Revenues for the fourth quarter ended December 31, 1999 increased 197% to $11.0 million from $3.7 million for the fourth quarter ended December 31, 1998. Net loss for the fourth quarter of 1999 was $1.3 million, or $0.09 per share, compared to a net loss of $0.6 million, or $0.05 per share, in the comparable period of 1998.

Fourth quarter revenues from the Company's core research services, Strategic Planning Services, grew 253%, reaching $8.6 million compared to $2.4 million for the same period last year. This represents a 34% increase over the $6.4 million in core research revenue reported for the third quarter of 1999.

Revenues from conferences rose 147% to $1.4 million for the fourth quarter 1999 compared to $0.6 million for the same period last year. The increase primarily reflects the launch of the company's highly successful Entertainment Conference. Conference revenues for the fourth quarter were lower than the $5.3 million in revenues reported for the third quarter, as historically Jupiter holds fewer, more targeted events in the fourth quarter.

For the fiscal year ended December 31, 1999, Jupiter reported revenues of $38.1 million, a 158% increase from the $14.7 million reported for the same period in 1998. Net loss for 1999 was $0.6 million, or $0.05 per share, compared with a net loss of $2.1 million, or $0.21 per share, in the comparable period of 1998.

"We had a stellar fourth quarter and a phenomenally successful 1999. Like our clients, we're growing at Internet speed as evidenced by our triple-digit increases in revenue, contract value and number of client contracts," commented Gene DeRose, Jupiter's chief executive officer.

"We're building a solid foundation for future growth with aggressive hiring of both research analysts and sales professionals. The size, the number and the diversity of contracts we see is amazing--from traditional companies transforming their business models to new companies emerging as a result of the Internet. This is demonstrated by the addition of clients such as Qualcomm, Dresdner/RCM, RealNetworks, and Rand McNally during the fourth quarter."

DeRose concluded, "Jupiter continues to expand the breadth of its research, and its geographic reach. The new research services we launched last year accounted for 17% of Jupiter's year end contract value. With our recently announced launch of Jupiter Japan, a joint venture with Hikari Tsushin Capital, we are the first Internet research and advisory firm with a local presence in Japan. As the Internet changes the business landscape, we at Jupiter continue to evolve, and we are always exploring ways to capitalize on our first mover advantage and well-established brand name."

"A true advantage for us is our conference business, where three-quarters of our paid attendees are prospects for our core research," said Kurt Abrahamson, Jupiter's president and chief operating officer. "We are launching seven new conferences during fiscal 2000, and we will continue to expand our services offerings in anticipation of our clients' research needs."

Jupiter Communications, Inc. (Nasdaq:JPTR) is a leading provider of research on Internet commerce. Jupiter's research, which is solely focused on the Internet economy, provides clients with comprehensive views of industry trends, forecasts, and best practices. The company's research services are provided primarily through its continuous subscription services. Jupiter's well-known industry forums offer senior executives the opportunity to hear firsthand the insights of its analysts and the leading decision-makers in the Internet and technology industries. Jupiter Communications is based in New York City, with operations in London, San Francisco, Stockholm, Sydney and Tokyo. For more information on Jupiter Communications visit http://www.jup.com.

JUPITER COMMUNICATIONS, LLC

Consolidated Statements of Operations
(Dollars in thousands, except per share data)

       ------Three Months Ended-----------Year Ended---------------
          12/31/98  12/31/99 % change 12/31/98 12/31/99 % change

            (unaudited)
Revenues:
Strategic
 Planning
 Services    $ 2,431   $ 8,583    253%    $ 6,183  $ 23,134    274%
Conferences      557     1,377    147%      4,890    11,270    130%
Other            730     1,088     49%      3,675     3,680      0%
Total
 Revenues      3,718    11,048    197%     14,748    38,084    158%

Cost of
 Services
 and
 Fulfillment   2,267     4,524     100%     9,676    16,898     75%
Gross Profit   1,451     6,524     350%     5,072    21,186    318%

Other
 operating
 expenses:
Sales and
 marketing     1,018     4,242    317%      3,173    11,384    259%
General
 and
 admini-
 strative
 expenses        992     3,781    281%      3,897    10,099    159%
Depreciation
 and
 amortization     48       702   1363%        193     1,278    562%

Total other
 operating
 expenses      2,058     8,725    324%      7,263    22,761    213%

Interest
 income           46       708   1439%         54       743   1276%
Tax benefit        -      (202)     0%          -      (202)     0%

Net loss      $ (561) $ (1,291)   130%    $(2,137)   $ (630)   -71%

Pro forma
 basic net
 income
 (loss) per
 common
 share(1)    $ (0.05)  $ (0.09)           $ (0.21)  $ (0.05)
Pro Forma
 weighted
 average
 common
 shares
 outstand-
 ing(1)       10,318    14,492             10,318    11,565

Consolidated Balance Sheet
(Dollars in thousands)

                                   -------------As of-------------
                                     12/31/98  12/31/99

Assets

Current Assets

  Cash and cash equivalents             $ 216  $ 57,222
  Investments                               -     8,853
  Accounts receivable, net              4,580    17,850
  Prepaid expenses and other assets       797     3,157
  Total current assets                  5,593    87,082

Property and equipment, net             1,071     5,131
Goodwill and other intangible
 assets, net                               55     4,526
Other assets                              148       441
Total assets                          $ 6,867  $ 97,180

Liabilities and Shareholders' Equity (Deficiency)

Current liabilities

  Accounts payable                    $ 1,242   $ 2,764
  Accrued expenses                      1,051     3,694
  Deferred revenue                      6,677    25,594
  Total current liabilities             8,970    32,052

Notes payable                               -     3,500
Deferred rent                              26       130

Total shareholders' equity
 (deficiency)                           (2,129)  61,498
Total liabilities and shareholders'
 deficiency                            $ 6,867 $ 97,180

SELECTED OPERATING DATA              12/31/98  12/31/99

Number of SPS Contracts                   421       987
Total Contract Value (in thousands)  $ 11,666  $ 40,081
SPS Deferred Revenue (in thousands)   $ 5,639  $ 21,908
Average Contract Size                $ 28,000  $ 41,000
Number of Employees                       142       270