ADSTAR.com COMPLETES FINANCING ROUND

By: Staff Reports

Company Expects Profitability By Year End


AdStar.com Inc. of Marina Del Rey, Calif., has completed a round
of private financing, raising $400,000 from four accredited
investors.

The online ad placement company earlier this year started to
concentrate on offering its Advertise123.com technology as an
application service in hopes of generating more revenue.

The company reports that net revenues for 2000 decreased to
$1,375,000, a 5% decline from 1999 net revenues of $1,454,000.
AdStar’s net loss for 2000 was $4,629,000 compared with a loss of
$2,865,000 in 1999.

AdStar.com admitted that its consumer classified advertising
portal, Advertise123.com, is not a viable business model by
itself. Hence, the company is concentrating on building private-
label sites for large newspaper clients.

Leslie Bernhard, president and CEO of AdStar.com, said in a
statement: “We believe existing cash resources and estimated
operating cash flow, after giving effect to our reductions in
headcount from 36 to 23 in January 2001 and reduced expenditures
on Web development after the accomplishments in 2000, will be
sufficient to meet working capital and capital requirements
through Dec. 31, 2001.”

The company said it would reach profitability by the end of the
year.



Copyright 2001, Editor & Publisher.

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