NetCurrents (fka NTCS)

[PappaJohn]

NetCurrents Inc. Reports Third Quarter, Nine-Month Results
Third Quarter Internet Monitoring Revenues Up Strongly Over This Year's Second Quarter
BURLINGAME, Calif.--(BUSINESS WIRE)--Nov. 14, 2000--NetCurrents Inc. (Nasdaq:NTCS - news), The Premier Internet Intelligence Agency, today announced operating results for its third quarter and first nine months ended Sept. 30, 2000.

According to NetCurrents Chief Executive Officer Irwin Meyer, the continued growth in client base and the expanded use of NetCurrents' flagship products by corporate clients led to record growth in Web monitoring revenues for the period.

``Third quarter monitoring revenues reflected a significant increase from monitoring revenues in the second quarter of this year,'' Meyer said, ``Our client base has increased every month and is continuing to trend up in the fourth quarter. We are currently targeting a client base of more than 100 by year end, with Internet monitoring revenues for the fourth quarter alone, expected to approach the level of total revenue for first nine months of the year.''

For the third quarter ended Sept. 30, 2000, total revenues were $477,103 with a loss from operations of $ 1,893,909 and a comprehensive loss applicable to common shareholders of $ 2,090,056, or a loss per share of $0.07 including a non-cash charge of $106,250 for quarterly dividends payable in Common Stock to holders of the company's Series A and cash of $2,213 payable holders of Series G Preferred Stock. This compares to total revenues of $120,251 and a net loss from operations of $776,057 and a comprehensive loss applicable to common shareholders of $919,551 or $0.67 loss per share for the third quarter ended Sept. 30, 1999 of last year. In last year's third quarter, the company recorded total charges of $106,250 for stock dividends paid to holders of all classes of its Preferred Stock. Revenues for this year's first nine months were derived principally from the sale of the company's Internet intelligence products and services, while revenues in all prior periods were derived primarily from entertainment production activities, a business which the company no longer actively pursues.

Revenues for the first nine months of this year were $1,089,883 with a loss from operations of $5,891,431 and a comprehensive loss applicable to common shareholders of $6,601,735, or a loss per share of $0.22 compared to revenues of $2,655,904 and a net loss per share of $0.10 for the same period last year. This year's first nine-month results included non-cash charges of $318,750 for quarterly dividends payable in Common Stock to holders of the company's Series A Preferred Stock and $24,463 in cash dividends payable to holders of the company's Series G Preferred Stock. During the first nine months of last year, the company recorded total charges of $385,000 for cash and non-cash dividends paid to holders of the company's Series A and E Preferred Stock.

``I continue to be encouraged by the progress we are making in expanding our technology, introducing new products and developing new strategic sales partnerships,'' Meyer continued. ``The alliances we have with Thomson Financial/Carson (TFC) and Burrelle's Information Services will now begin to produce revenues. Our relationship Kroll Risk Consulting Services has already begun to generate revenues and has also resulted in excellent corporate exposure, both in the media and in the executive suites of many corporate accounts. We believe that each of these companies will leverage our internal efforts and help to accelerate our already rapid growth. The TFC rollout began October 3, with an initial 185 clients, with the balance of the first 500 to be online November 30.''

According to NetCurrents Chief Financial Officer Michael Iscove, the company's balance sheet as of Sept. 30, 2000 remained showed cash and cash equivalents of $4.9 million, a current ratio of 6:1 and total shareholders equity of $6.6 million.

About NetCurrents Inc.

NetCurrents, The Premier Internet Intelligence Agency, analyzes communications from more than 50,000 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 our 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 services and maintain its effectiveness, the continuation and success of its strategic alliances, general economic conditions and other risks that are discussed in the company's filings with the Securities and Exchange Commissions (including the company's Annual Report on Form 10K-SB). The company undertakes no obligation to publicly update or revise forward-looking statements whether as a result of new information, future events or otherwise.


Netcurrents Inc.
Summary Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2000 1999 2000 1999

Revenues: $ 477,103 $120,251 $1,089,883 $2,655,904

Cost of sales -- 3,009 -- 1,140,169

Selling, general and
administrative 2,371,012 893,299 6,981,314 2,253,725

Loss from
operations $(1,893,909) $(776,057) $(5,891,431) $(737,990)

Other income
(expense) (6,484) (37,244) 31,272 (220,795)

Net loss $(1,900,393) $(813,301) $(5,860,159) $(958,785)

Dividend
requirements (108,463) (106,250) (343,213) (385,000)
Unrealized loss
on investment (81,200) -- (398,363) --

Comprehensive loss
applicable to common
shareholders $(2,090,056) $(919,551) $(6,601,735) $(1,343,785)


Net loss per common share:
Basic and diluted $(0.07) $(0.67) $(0.22) $(0.10)

Weighted average number
of common shares
outstanding 30,674,692 13,683,659 30,674,692 13,683,659


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Contact:
Allen & Caron Inc.
Matt Clawson (investors), 949/474-4300
[e-mail]
or
Len Hall (media), 949/474-4300
[e-mail]

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