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eCollege.com
10200 A East Girard Avenue, Denver, CO 80231 * (303) 873-7400
Business Description The company is a leading provider of a complete solution that enables colleges and universities to deliver an online campus and courses over the Internet. Our integrated software and services allow colleges and universities to outsource the creation, launch, management and support of a comprehensive online campus and courses.
Offering
Information

Company has
gone public

Trading As  ECLG (NASNTL) Industry  Internet (SIC 7379)
Type of Stock Offered  Common Shares Filing Date  5/13/99
Domestic Shares Offered  5,000,000 Offer Date  12/14/99
Foreign Shares Offered  0 Filing Range  $8.00 - $10.00
Company Shares  5,000,000 Offer Price  $11.00
Selling Shrhldrs Shares  0 Gross Spread  $0.770
Gross Proceeds  $55,000,000 Selling  $0.440
Expenses  - - Reallowance  $0.100
Post-IPO Shares  13,860,000 Employees  197
Primary
Underwriting
Group
Underwriter NameParticipationUnderwriter Phone
Banc of America Securities LLC Lead Manager (415) 627-2100
Thomas Weisel Partners LLC Co-manager (415) 364-2500
William Blair & Company Co-manager (312) 364-8990
Income
Statement
and
Cash Flow
Summary
  Prior
Audited
Income
Latest
Unaudited
Income
  Full Year Audited Figures 3 Months Ending
Figures in U.S. millions except per share data     12/31/96 12/31/97 12/31/98 3/31/98 3/31/99
Revenues   - - 0.022 1.028 1.665 0.248 0.611
Income from Oper.   - - -0.422 -0.586 -7.402 -0.783 -3.248
Net Income   - - -0.404 -0.615 -7.290 -0.753 -3.128
E.P.S   - - - -0.110 -1.050 -0.120 0.490
Revenue Growth (%)      - - 4,572.73 61.965   146.37
Net Income Growth (%)      - - - -   -
Oper. Profit Margin (%)    - - - - - - -
Net Profit Margin (%)    - - - - - - -
Cash Flow - Oper.     -5.32 -0.59 3.01
Cash Flow - Inv.     -1.66 -0.42 -0.33
Cash Flow - Fin.     18.43 5.94 1.61
Balance Sheet
Summary
and
Financial
Ratios
Balance sheet as of: 3/31/99 Financial Ratios
Total Assets    12.82 Current Assets    11.10 Current Ratio    4.59
Total Liab.    24.98 Current Liab.    2.42 Debt Ratio    194.92%
Total Equity    -12.17 Working Cap.    8.68 Debt to Equity Ratio    -
Cash    9.93    Return on Assets   -
Use Of
Proceeds
The proceeds from the proposed offering will be used to fund anticipated operating losses, to substantially increase promotional and marketing activities and for general corporate purposes including adding personnel to expand development and marketing capabilities.
Legal Counsel
Registrar
Auditor
Issuer's Law Firm  Brobeck, Phleger & Harrison
Bank's Law Firm  Cooley Godward Castro Huddleson & Tatum
Registrar/Transfer Agent  American Securities Transfer and Trust
Auditor  Arthur Andersen
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Industry
Competition
The online learning market is quickly evolving and is subject to rapid technological change with no single competitor accounting for a dominant market share. We believe that the principal competitive factors in our market include: the ability to provide an online solution meeting the needs of colleges, universities and students; quality and performance of online learning solutions; service features such as adaptability, scalability and ability to integrate other technology-based products; quality of implementation and service teams; company reputation; and pricing. Our competitors vary in size and in the scope and breadth of the products and services they offer. Competition is most intense from colleges' and universities' internal information technology departments. Many colleges and universities construct online learning systems utilizing in-house personnel and creating their own software or purchasing software components from a vendor. We also face significant competition from a variety of companies including: (1) other companies which seek to offer a complete solution including software and services, (2) software companies with specific products for the college and university market, (3) systems integrators and (4) hardware vendors.

Last updated: 12/26/99 7:28:36 PM
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