netValue, Inc.
Proposed Ticker: - 1960 Bronson Road Building No 2
Exchange:NASDAQ-Small Cap Market Fairfield, CT 06430
Industry:Service (SIC Code 7319) (203) 319-7000

Filing Information
Type of Shares:Common Shares Filing Date:12/30/97
U.S. Shares Filed:2,400,000 Filing Price:$5.00
Non-U.S. Shares Filed:0 Offering Amount: $12,000,000
Primary Shares:2,400,000 Expenses:$300,000
Secondary Shares:0 Shares Out After:13,086,006

Primary Underwriting Group
ManagerTierPhone
J. B. Sutton Group L.L.C.Lead Manager (516) 498-2100

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Bernstein & Wasserman
Bank's Law Firm: Klehr, Harrison, Harvey, Branzburg & Ellers LLP
Auditor: LJ Soldinger Associates

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 9/30/97 9/30/96 9/30/97
Revenue:$0.00$0.00$0.00Assets:$0.75
Net Income:-$3.31-$6.81-$1.00Curr Assets:$0.06
EPS:-$0.63Liabilities:$6.38
Prior EPS:-$3.94-$0.29Curr Liabilities:$3.83
Cash Flow/Oper:-$1.84$4.14$2.45Equity:-$5.63
Cash Flow/Fin:$2.45-$0.48-$0.01Cash:$0.03
Cash Flow/Inv:-$0.31-$0.48Working Cap:-$3.77

Business Description
netValue is a development stage company which provides electronic commerce and database marketing services to Internet advertisers and publishers. The Company's first product, Coupons Online, allows marketers to deliver targeted, secure coupons and other incentives to consumers from any Internet web site. Consumers use the Company's web-browser plug-in software to access and print coupon offers from the web site of netValue's clients. The Company's systems provide online targeting and validation for each consumer and coupon. In July 1997, the Company commenced commercial operations of its Coupons Online service. The Company's second product, i-Value, is a service to which consumers subscribe to receive periodic "electronic packages" of incentives delivered to their personal computers. Promotional offers can be individually tailored to each consumer's product preferences and shopping habits. netValue provides client retailers with consumer software, targeting, validation and reporting services. The Company expects to commercially launch its i-Value program in the second quarter of 1998.

Competition
The Company faces significant competition from many consumer promotion and advertising companies which compete, directly or indirectly, for consumer advertising and promotion business from advertisers and for consumers' time and attention. Many of these advertising and promotion companies have longer operating histories, greater market presence, and substantially greater financial and other resources than the Company. Many of these companies, including Catalina Marketing Corporation, Money Mailer, Val-Pak Direct Marketing Systems and Interactive Coupon Network, have initiated or are planning to initiate programs and services involving the Internet. Additionally, the Internet is a relatively new format upon which retailers and consumers conduct business. As the Internet evolves and consumers gain greater confidence in the Internet and other means of electronic commerce, it is likely that competition will increase. Accordingly, there can be no assurance that competition will not increase from existing competitors, that established or new companies will not enter the market, that competitors will not offer comparable products and services at lower prices than the Company, or that the Company will be able to compete successfully with such existing or new competitors.

Use of Proceeds
The proceeds from the proposed offering will be used to repay short term notes payable, to repay outstanding accounts payable, to provide funds for working capital and for general corporate purposes.

©1997 IPO Data Systems, Inc. - All rights reserved.