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light of the risks, uncertainties, expenses and difficulties frequently encountered by companies that are in new and/or rapidly evolving markets 

and continuing to innovate with new and unproven technologies. Some of these risks relate to our potential inability to:  

develop and integrate new features with our existing services; 

expand our services to new and existing merchants, merchant banks and aggregators and wireless carriers; 

manage our growth, control expenditures and align costs with revenues; 

expand successfully into international markets; 

attract, retain and motivate qualified personnel; and 

respond to competitive developments, including rapid technological change, changes in customer requirements and new products 

introduced into our markets by our competitors. 

If we do not effectively address the risks we face, our business model may become unworkable and we may not achieve or sustain 

profitability.  

Our stock price has been and is likely to continue to be highly volatile. 

The trading price of our common stock has historically been highly volatile. Since we began trading on December 15, 1998, our stock 

price has ranged from $1.06 to $138.50 (as adjusted for stock splits). On February 28, 2002, the closing price of our common stock was $1.35. 

Our stock price could continue to decline or to be subject to wide fluctuations in response to factors such as the following:  

actual or anticipated variations in quarterly results of operations; 

announcements of technological innovations, new products or services by us or our competitors; 

changes in financial estimates or recommendations by securities analysts; 

conditions or trends in the Internet and online commerce industries; 

announcements of significant acquisitions, strategic partnerships, joint ventures or capital commitments by us, our customers or our 

competitors; and 

additions or departures of key personnel. 

In addition, the stock market in general, and the Nasdaq National Market and the market for Internet and technology companies in 

particular, have experienced extreme price and volume fluctuations. These broad market and industry factors and general economic conditions 

may materially and adversely affect our stock price.  

We have historically been, and currently remain, reliant upon revenues from our wireline services. Our operating results would be 

harmed by a decline in sales of our wireline services or our failure to collect fees for these services. 

Historically, we have derived a majority of our revenues from our wireline services, including licensing and advertising revenue from our 

customers. Based upon our reliance on revenues from wireline services, total revenues may decline if revenues from our wireline services do 

not meet our expectations.  

As a result of unfavorable market or economic conditions, some of our wireline customers are having difficulty raising sufficient capital to 

support their long term operations or are otherwise experiencing adverse business conditions. These customers may not be able to pay us some 

or all of the fees they are required to pay us under their existing agreements or may not be able to enter into new agreements. If we are unable 

to collect these fees or enter into new agreements, our operating results will be harmed.  

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