NetCurrents (fka NTCS)

[PappaJohn]

NetCurrents Inc. Reports Second Quarter, Six-Month Results
Second Quarter Revenues Up 29% Over This Year's First Quarter
BURLINGAME, Calif.--(BUSINESS WIRE)--Aug. 11, 2000--NetCurrents, Inc. (Nasdaq:NTCS - news), The Premier Internet Intelligence Agency, today announced operating results for its second quarter and first six months ended June 30, 2000. The signing of significant strategic alliances and the continued use of NetCurrents' flagship products by an increasing number of major corporate clients highlighted a quarter in which the Company also expanded its sales force and introduced its new, leveraged channel distribution strategy.

Revenues for this year's first six 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.

For the second quarter ended June 30, 2000, revenues were $345,363 with a net loss of $1.9 million, or a loss per share of $0.06 including a non-cash charge of $106,250 for quarterly dividends payable in Common Stock to holders of the Company's Series A Preferred Stock. This compares to revenues of $2.5 million and a net loss of $944,035 or $0.10 loss per share for the second quarter of last year. In last year's second quarter, the Company recorded total charges of $172,500 for cash and stock dividends paid to holders of all classes of its Preferred Stock.

``Second quarter revenues reflected a 29 percent increase from revenues of $267,417 in the first quarter of this year,'' Meyer said, ``and, with July and August continuing to show sales increases over previous months, we are seeing a steady increase in monthly sales. This is occurring even though our strategic alliance partners will not start to launch our services for several weeks and the revenue impact of those launches will not be reflected until the latter part of this year.''

Revenues for the first six months of this year were $612,780 with a net loss of $4.1 million, or a loss per share of $0.13 compared to revenues of $2.5 million and a net loss per share of $0.05 for the same period last year. This year's first six-month results included non-cash charges of $212,500 for quarterly dividends payable in Common Stock to holders of the Company's Series A Preferred Stock and $22,500 in cash dividends payable to holders of the Company's Series G Preferred Stock. During the first six months of last year, the Company recorded total charges of $278,750 for cash and non-cash dividends paid to holders of all classes of its Preferred Stock.

``I am very encouraged by the progress we are making this year in expanding our technology, introducing new products and services and building our national sales force,'' Meyer continued. ``The exclusive strategic alliances we have entered into this year with Thomson Investor Relations and Burrelle's Information Services, and the Letter of Intent we have executed with Kroll Risk Consulting Services, has potentially placed our products and services in the hands of more than 300 sales professionals, serving more than 30,000 companies worldwide in three new and important markets. Each of these companies is a leader in its respective field, and our alliances with them have resulted in the development of new market-specific service offerings and have established NetCurrents as a leader in the real-time Internet monitoring and intelligence sector.

``These alliances,'' Meyer added, ``will leverage our direct sales efforts and will target specific vertical industry sectors with products and services developed and priced to meet the specific needs of each. While these new products and services will include a basic service offering to these markets, we feel confident that once the importance of the information gathered by our technology is recognized by the end user in developing multiple corporate strategies, an increased demand for our higher end products and services will result.''

Meyer continued, ``The introduction this past week of our AgencyFacts product, designed to service our alliance partners' clients, is the first fully automated, real-time Internet monitoring and analysis tool available that will meet the needs of corporations as well as the brokerage community. AgencyFacts users will have the ability to instantaneously determine what the online community is saying about their company, while simultaneously evaluating online sentiment. There is no other product available that can provide this information as quickly and cost effectively.''

According to NetCurrents Chief Financial Officer Michael Iscove, the Company's balance sheet as of June 30, 2000 remained strong with cash and cash equivalents of $7 million, a current ratio of 7:1 and total shareholders' equity of $8.4 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 its website 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 Commission (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 Six Months Ended
June 30, June 30,
2000 1999 2000 1999

Revenues: $ 345,363 $2,523,653 $ 612,780 $2,535,653

Cost of sales -- 1,137,161 -- 1,137,161

Selling, general
and
administrative 2,205,966 949,447 4,680,828 1,360,426
Other income
(expense) 40,192 (1,208,580) 129,253 (213,039)

Net income
(loss) ($1,929,066) ($ 944,035) ($4,185,700) ($ 436,885)

Net Income (loss)
per common share:
Basic and
diluted ($ 0.06) ($ 0.10) ($ 0.13) ($ 0.05)

Weighted average
number of
common shares
outstanding 32,059,653 9,085,053 32,059,653 9,085,053

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


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