NetCurrents (fka NTCS)

[PappaJohn]

NetCurrents Comments On Third Quarter Sales Increase, Customer Base Expansion
Internet Monitoring Sales Increase By Approximately 74% Over Previous Quarter; Customer Base Expands 122%
BURLINGAME, Calif.--(BUSINESS WIRE)--Oct. 4, 2000-- NetCurrents Inc. (Nasdaq:NTCS - news), ``The Premier Internet Intelligence Agency,'' today announced that sales of its Premier Internet monitoring services for the third quarter ended September 30, 2000, increased approximately 74 percent from sales of $233,878 for those same services in the second quarter of this year.

According to the announcement by NetCurrents Chairman and CEO Irwin Meyer, the company's customer base during the third quarter, when compared to the second quarter of this year, increased 122 percent to 71 customers. This includes channel partners who resell Agency Facts and other NetCurrents products and services to their clients, representing thousands of potential new NetCurrents clients.

``I am especially encouraged that we continue to show significant quarter-to-quarter increases in both Premier Internet monitoring sales and in the size of our client base with only our in-house sales force actively marketing the products,'' said NetCurrents Chief Financial Officer Michael Iscove. ``We believe the results of the first nine months of operation demonstrate the continuing and growing need for our services. We look forward to continued growth as sales from our strategic alliance and channel partners begin to have a positive impact on revenues in the coming months.

``As of September 30, the Company's balance sheet showed approximately $4.6 million in cash and cash equivalents and no bank or long-term debt,'' Iscove continued. ``At our current levels of sales and spending and without raising any additional funds, we believe we have sufficient capital resources to adequately fund our operations until mid-summer 2001. Of course, as our sales continue to increase, the Company will move closer to generating positive cash flow.''

Meyer said, ``For the benefit of those who may have been receiving mixed, and sometimes inaccurate, messages on the Internet about the prospects of the Company, I would like to set the record straight. The level of sales generated by our in-house sales force continues to be very promising. The launches of our channel sales partnerships, while taking longer than originally expected, are still moving forward in respect to product readiness, training and contractual details. We fully expect that the previously announced relationships with Thomson Financial Carson (formerly Thomson Financial Investor Relations), Kroll Risk Consulting Services and Burrelle's Information Services will all be generating sales by the end of the fourth quarter, with the first of these to be launched this month.''

As the Company continues to execute its business plan, aspects of that plan have evolved as new opportunities have presented themselves. ``We have been careful to communicate these new opportunities only as they have become reality and will continue to do so in the future,'' Meyer added. ``With the addition of new clients each month and the continued growth in revenues, we gain greater insight into how our products and services can be applied to meet the needs of the market. We are optimistic about the near- and long-term prospects of NetCurrents as our products and services continue to receive validation from our new and ongoing clients and our strategic alliance partners.''

``It is also important to note,'' he added, ``that due to the sensitive nature of the services we provide, many of our clients insist on remaining anonymous. Since we must honor the confidentiality requests of our clients, we are often unable to publicly disclose their names.''

About NetCurrents Inc.

NetCurrents, ``The Premier Internet Intelligence Agency,'' analyzes communications from more than 63,000 targeted Internet locations in real-time. The Company provides clients with critical information and counsel to protect their corporate image, measure consumers' perceptions, and counter misinformation on the Internet. Due to the sensitivity of businesses that require this type of technology and analysis, the confidentiality of NetCurrents' clients is assured. For more information visit the company's Web site at www.netcurrents.com.

This news release contains forward-looking statements within the meaning of Section 37A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the company's ability to continue to successfully market and provide its services and maintain their effectiveness, ongoing sales of the company's products, continuance of the company's strategic alliances and general economic conditions. The company undertakes no obligation to publicly update or revise forward-looking statements whether as a result of new information, future events, or otherwise.


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Contact:

For NetCurrents Inc,
Allen & Caron Inc., 949/474-4300
Matt Clawson (Investors)
[e-mail]
Owen Daley (Media)
[e-mail]


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