FindWhat.com Announces First Quarter Results

First Quarter 2001 Revenue Increases 62% From Fourth Quarter 2000

NEW YORK--May 15, 2001--FindWhat.com (NASDAQ:FWHT) a developer and marketer of performance-based advertising services for the Internet, featuring the FindWhat.com pay-for-position search engine, today reported its financial results for the three months ended March 31, 2001. Highlights include:

-- Revenue increased 62% versus the fourth quarter of 2000.

-- Net loss, not including a one-time loss on the sale of an advertising contract, and non-cash charges related to grants of stock, warrants, or options to service providers and non-employees, was $296,244, or $(0.02) per share.

-- Paid click-throughs on the FindWhat.com search engine increased 73% to 22.9 million from 13.2 million in Q4 2000.

-- Average revenue per paid click-through on the FindWhat.com search engine was $0.10.

-- 15,500 total advertiser accounts had been opened as of March 31, 2001.

FindWhat.com reported revenue for the first quarter ended March 31, 2001 of $2,563,332, an increase of 62% over revenue of $1,579,713 for the fourth quarter ended December 31, 2000. In the first quarter of 2000, FindWhat.com had revenue of $216,725. FindWhat.com`s Q1 2001 revenue of approximately $2.6 million represents almost 90% of its approximately $2.9 million in revenue for all of 2000.

FindWhat.com reported a first quarter 2001 net loss of $2,732,004, or $(0.18) per share, which included a loss of $996,382 related to the one-time sale of its remaining radio advertising time under its agreement with Beasley Broadcast Group, and $1,439,378 in non-cash charges related to grants of stock, warrants, or options to service providers and non-employees. Without these items, net loss would have been $296,244, or $(0.02) per share. FindWhat.com`s net loss in Q1 2000 was $2,053,851, or $(0.15) per share, which included $964,851 in non-cash charges related to grants of stock, warrants, or options to service providers and non-employees. Without these charges, net loss in Q1 2000 would have been $1,089,000, or $(0.08) per share.

Craig Pisaris-Henderson, President and CEO of FindWhat.com commented, "Due to our strategic approach to online advertising, the hard work of our employees, and the faith of our investors, we turned in another impressive quarter of revenue growth and added key partners to our distribution network, including Excite.com and Webcrawler. These achievements leave no doubt that we are a clear leader in the performance-based search engine space, where online advertisers only pay for each visitor to their Web sites. We believe that our results, along with the terrific performances of others in our sector, prove that our business model works better than that of almost any other online advertising alternative. Equally important, we are reducing our cash losses significantly, and we look forward to achieving positive cash flow and net income, the true measures of a successful business."

Services / Key Metrics

FindWhat.com`s search engine revenue is determined by multiplying the number of paid click-throughs by the average revenue per paid click-through. Advertisers bid for position among FindWhat.com`s search results for the key words that are most relevant to their Web sites. The advertiser that bids the most for a particular key word is listed first, with all other Web sites listed in descending order of their bids. Advertisers only pay FindWhat.com if an Internet user searches for one of their key words and then clicks on their listing, producing a paid click-through. FindWhat.com`s editors review every bid to ensure that the listing is appropriate for that key word. This methodology produces extremely relevant results for e-commerce oriented searches, and drives highly qualified traffic to FindWhat.com`s advertisers.

FindWhat.com distributes its listings to third-party search engines and other high-traffic Web sites, such as Excite.com, Webcrawler.com, CNET`s Search.com, and InfoSpace`s MetaCrawler and Dogpile, and shares its revenue from paid click-throughs with these sites. As a result, FindWhat.com serves as a source of revenue and relevant search result listings for these sites, while providing its advertisers with exposure to potential customers across the Internet. As with the Yellow Pages in the offline world, FindWhat.com`s advertisers get their message in front of prospects at the exact time they are looking for the advertisers` products and services. Unlike the Yellow Pages, advertisers only pay for those visitors that "walk" into their virtual stores.

The key metrics for the FindWhat.com search engine are paid click-throughs, average revenue per click-through, and advertiser accounts. FindWhat.com reports total advertiser accounts, because accounts which are inactive for a particular quarter may become active again in a future period. As of March 31, 2001, FindWhat.com had approximately 15,500 advertiser accounts, of which 7,500 received paid click-throughs during the quarter. The following table lists key metrics for each of the five full quarters of operation for the search engine.

FindWhat.com also offers the BeFirst.com search engine optimization service, which helps our clients improve their position among over 300 third-party search engines. As with our search engine, our clients only pay for every click-through that results from our efforts. In addition, BeFirst.com offers a Web site submission service, which submits our clients` Web sites to over 1,000 third-party search engines for a monthly fee. Submission is a critical aspect of improving a site`s chances of being listed by search engines whose results are not determined by bidding for placement.

Projected Results