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Internet America, Inc.
One Dallas Centre, 350 N. St. Paul, Suite 3000, Dallas, TX 75201 * (214) 953-6000

The company is a leading Internet service provider in the southwestern United States. The company provides an array of Internet services tailored to meet the needs of individual and business customers, including customers with little online service.

Primary Underwriting Group
ManagerTierPhone
Hoak Securities, Inc.Lead Manager
Ferris, Baker, Watts Inc.Co-manager (202) 429-3608

Offering Information
NASNTL:GEEK Internet: SIC 7372
Type of Shares:Common Shares Filing Date:7/21/98
U.S. Shares:2,300,000 Offer Date:12/9/98
Non-U.S. Shares:0 Filing Range:$9.00 - $11.00
Primary Shares:2,300,000 Offer Price:$13.00
Secondary Shares:0 Gross Spread:$0.91
Offering Amount: $23,000,000 Selling:$0.55
Expenses:$450,000 Reallowance:$0.10
Post-IPO Shares:6,285,984
Employees:90

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Jackson & Walker
Bank's Law Firm: Locke, Purnell, Rain & Harrell
Registrar/Transfer Agent: ChaseMellon Shareholder Services, L.L.C.
Auditor: Deloitte & Touche

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
Audited
Income
Balance
Sheet
6/30/97 3/31/98 3/31/97 3/31/98
Revenue:$9.41$7.71$7.01Assets:$2.82
Net Income:-$3.82$0.69-$3.53Curr Assets:$0.53
EPS:-$1.12$0.20-$1.04Liabilities:$6.81
Prior EPS:-$1.15Curr Liab:$6.69
Cash Flow/Oper:-$1.43$1.38-$1.63Equity:-$3.99
Cash Flow/Fin:$2.86-$0.62$3.14Cash:$0.19
Cash Flow/Inv:-$1.51-$0.57-$1.59Working Cap:-$6.16

Use of Proceeds
The proceeds from the proposed offering will be used to fund potential acquisitions, to fund increased marketing expenses and incremental capital equipment and infrastructure expenditures related to the company's anticipated growth, to repay indebtedness and for general corporate purposes.

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