NETSCAPE FROM DYLAN

Sorry guys:

My other email account will not let me send.

I have really dropped the ball on this one. I have been looking at your
stuff all morning and it appears to be pretty good. I like the model for the
projections. One point that I think was missed a little (although Jeff
addressed it somewhat in his revisions to Mark's comments) is the risk to
Netscape of going ahead with the $28 value. I have been looking in the case
and have not found if this is a firm commitment placing or the best effort
type. Obviously from Netscape's stand point, if it is a firm commitment then
the higher the sale price that is underwritten the better. It will provide
more equity funding. This may not be beneficial to the current shareholder's
given Jeff's Hot Issue comments.

Looking at the comparable recent IPOs (particularly UUnet), it appears that
there is enough evidence to support letting it out at $28. The issue is
about the same size and the financials are roughly comparable. UUnet was
actually selling less and losing more than Netscape. Although the increase
in price on the day of issue is a little misleading since it is only a small
portion of shares, UUnet appears to have sustained the stock price level of
at least a few months (and it has increased further).

Anyway, I think I remember that Netscape did go for it and it IPO'd at $28
and close at over $70 on the first day. Is this what Greenspan meant by
irrational exhurberants?

I am about to do the Easter thing and then drive home. I will not be there
until after 8. I do not want to put more time on Jimmy waiting for me. I
will look at the finished product and try and hold my comments to a minimum.
Since I dropped the ball, I will take the lead on the last one to make it up
to you guys.

Dylan