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Vignette Corp.
3410 Far West Boulevard, Suite 300, Austin, TX 78731 * (512) 502-0223
Business Description Vignette is a leading provider of Internet Relationship Management ("IRM") software products and services.
Offering
Information

Company has
gone public

Trading As  VIGN (NASNTL) Industry  Internet (SIC 7372)
Type of Stock Offered  Common Shares Filing Date  12/3/98
Domestic Shares Offered  4,000,000 Offer Date  2/18/99
Foreign Shares Offered  0 Filing Range  $15.00 - $17.00
Company Shares  4,000,000 Offer Price  $19.00
Selling Shrhldrs Shares  0 Gross Spread  $1.330
Gross Proceeds  $76,000,000 Selling  $0.820
Expenses  - - Reallowance  $0.100
Post-IPO Shares  - - Employees  219
Primary
Underwriting
Group
Underwriter NameParticipationUnderwriter Phone
Morgan Stanley Dean Witter Discover & Co. Lead Manager (212) 761-5900
Dain Rauscher Wessels Co-manager (612) 371-2818
Hambrecht & Quist Incorporated Co-manager (415) 439-3626
Income
Statement
and
Cash Flow
Summary
  Prior
Audited
Income
Latest
Unaudited
Income
  Full Year Audited Figures 9 Months Ending
Figures in U.S. millions except per share data       12/31/96 12/31/97 9/30/98 9/30/98
Revenues   - - - 0.000 3.024 1.716 9.511
Income from Oper.   - - - -3.688 -7.643 -4.476 -16.498
Net Income   - - - -3.626 -7.474 -4.388 -16.294
E.P.S   - - - - -1.190 - -1.840
Revenue Growth (%)      - - - -   454.25
Net Income Growth (%)      - - - -   -
Oper. Profit Margin (%)    - - - - - - -
Net Profit Margin (%)    - - - - - - -
Cash Flow - Oper.     -4.93 -3.00 -9.73
Cash Flow - Inv.     -0.69 -0.54 -1.05
Cash Flow - Fin.     10.63 10.27 16.32
Balance Sheet
Summary
and
Financial
Ratios
Balance sheet as of: 9/30/98 Financial Ratios
Total Assets    19.45 Current Assets    18.35 Current Ratio    1.42
Total Liab.    14.90 Current Liab.    12.88 Debt Ratio    76.59%
Total Equity    4.55 Working Cap.    5.47 Debt to Equity Ratio    3.27
Cash    12.40    Return on Assets   -
Use Of
Proceeds
The proceeds from the proposed offering will be used for working capital general corporate purposes.
Legal Counsel
Registrar
Auditor
Issuer's Law Firm  Gunderson Dettmer Stough Villeneuve Franklin
Bank's Law Firm  Davis, Polk & Wardwell
Registrar/Transfer Agent  ChaseMellon Shareholder Services, L.L.C.
Auditor  Ernst & Young
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Industry
Competition
The Internet software market is intensely competitive. Our clients' requirements and the technology available to satisfy those requirements continually change. We expect competition to persist and intensify in the future. Our principal competitors include: in-house development efforts by potential clients or partners; other vendors of software that directly address elements of Internet Relationship Management, such as BroadVision; and developers of software that address only certain technology components of IRM (e.g., content management), such as Inso Corporation. Many of these companies, as well as some other competitors, have longer operating histories and significantly greater financial, technical, marketing and other resources than we do. Many of these companies can also leverage extensive customer bases and adopt aggressive pricing policies to gain market share. Potential competitors such as Netscape and Microsoft may bundle their products in a manner that may discourage users from purchasing our products. In addition, it is possible that new competitors or alliances among competitors may emerge and rapidly acquire significant market share. Competitive pressures may make it difficult for us to acquire and retain clients and may require us to reduce the price of our software. We cannot be certain that we will be able to compete successfully with existing or new competitors. If we fail to compete successfully against current or future competitors, our business, operating results and financial condition would be materially adversely affected.

Last updated: 12/12/99 1:39:29 PM
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