TWST: Would you start with an overview and profile of NewsEdge?

Mr. Pollan: NewsEDGE is an e-content syndicator. The focus of our energies is on business-oriented Websites. What we do is bring together information from newswires, newspapers and other sources and run that through a technology process followed by human editors to create content-oriented applications for inclusion on Websites. I got involved with the company in 1989 as a Founder. I have been running both the sales and marketing effort for years as President, and now CEO.

TWST: Who do you see as your strategic partners for content and how is that universe changing?

Mr. Pollan: Our content providers are the key business-oriented publications around the world. In terms of newswires it can be organizations like AP and Reuters. On the newspaper side, organizations like the Financial Times, The New York Times, or trade magazines like the Economist and Fortune. Essentially, we are looking to provide both local language and English language content on a worldwide basis. In terms of our corporate relationships, there have been dramatic changes in the way that we interact and partner with the publishers. In today's world, we are able to help them syndicate their content as part of our product, increasing awareness and increase readership for their print publications as well as their own Websites.

TWST: What is the international flair you have today and how do you see that global opportunity for NewsEDGE over the next several years?

Mr. Pollan: We have been a global company for the last six years, when we first opened our offices in the UK, and then expanded to Europe and Japan. Our operations in Japan represent our fastest growing area. They doubled their new sales rate last year, which accentuates the fact that we are sourcing materials on an international basis. Many of our customers are global so we need to have the breadth and depth of capabilities to service their needs.

TWST: Give us a frank assessment of your management team.

Mr. Pollan: We have recently added to our already experienced team by bringing in some senior marketing and product people to complement our resources. Our team is very broad and deep with enormous experience including our CFO, Ronald Benanto, who has been involved in many publicly held companies. Our head of worldwide operations is Jon McNerney. Tom Karanian, who has a deep seven-year history with the company, is running our service operation.

TWST: What is the value proposition that you are delivering in the marketplace today, and how is that different from your competition?

Mr. Pollan: Let me touch first on our business itself. Our business is meant to help business-oriented Websites get the right information on their sites. To that end, we have developed a unique process to create those types of content capability. We are able to bring information from around the world, run that through our NewsEDGE refinery and establish the DNA of the story. What is the story about? Is it about an earnings surprise, product announcement or management changes? And then we are able to add value to the content through our refinery. At the same time, we have a unique editorial process where we have industry experts who look at the content after it is filtered in 1,500 different topical areas. Our editors select the stories from literally tens of thousands of stories that could run on a particular topic ' and that can be on any topic, from pacemakers and defibrillators to bridges and routers. One of the ways we differentiate ourselves is the unique combination of technology in our NewsEDGE refinery and the human editorial industry specialists who we have.

TWST: From the reader's perspective, what do they gain from all of this?

Mr. Pollan: Readers have a positive experience because of the specificity of business-oriented news that we provide. Let me talk again about the significance of our 1,500 business business-oriented topics, which I just described, through our human review process. For example, if you are involved in pacemakers and defibrillators, you are going to see the exact news relevant to you. You are not going to see general business news, general health news or even general medical device stories. You are going to see specific stories relating directly to pacemakers and defibrillators. Today, readers want the information that matters to them, especially in the business world, where it is critically important that we can provide the specificity that readers require. Visitors to our customers' sites end up with a very rich experience that brings them back frequently for more.

TWST: What is the competitive landscape? Is there anyone else looking at your success in this space and trying to emulate what you are doing?

Mr. Pollan: There are definitely other companies that operate in the syndication area. Many of them take content and just deliver it directly to the Website, putting most of the responsibility on the Website itself to manage the selection of stories. At NewsEDGE, we think that is only half of the issue and that's why we have combined technology with human review. Probably one of the most high-profile companies that is out there is ScreamingMedia, which went public last month and had a strong valuation. I think that their public offering helps to further validate the industry, so it gives people a good comparison.

TWST: Several Webzines are basically aggregating content, reporting headlines from other sources and using that as their editorial content, which could lead to a loss credibility. How are you avoiding these problems?

Mr. Pollan: We deal with that in a couple of ways. The branding of the individual provider of a story is very visible in what we are doing. So if it is an AP story, people will know it is an AP story. We are not attempting to rewrite other people's content, we are presenting the original content, and organizing it and collecting what we believe is the most relevant. That helps because the readers know the source, and our editors are showing the different perspective. If a Bridge news story is different from the Financial Times, we will run those stories side-by-side so that the reader can see that there is actually a very different opinion on what is taking place. Is the merger going to go through or not? If one provider indicated that they thought that Deutsche Telekom/MCI merger was going to go through, then that would appear contrasted with Bridge, which might say it wasn't. In presenting the different perspectives, we help people understand the issues in order to make better informed business decisions.

TWST: How could the investment community better understand NewsEDGE? What misperceptions do you encounter?

Mr. Pollan: Since our stock price is at an all-time low at this point, we think we were affected by a couple of misperceptions. First, we do not have any analysts covering the company right now so you do not have a common message from Wall Street on the company. Second, our cash position has been misleading to people, and we have been mentioned in a few articles along with undue concerns over our cash. The reality is that we have a very strong cash position ' $20 million at the end of the second quarter ' which was up from $17 million in the prior quarter, and a debt free balance sheet. Much of the concern about our cash position came out of significant losses that we incurred in 1999 on an investment of a business that we have now sold. That business was, and it made up the majority of all of our losses. Following the sale, is now a good client for us, and we received $10.5 million in proceeds, of which only half has been received so far. We will receive the other half in the remainder of the year and in 2001. There is a perception that our cash position was going to get eaten up because of the previous losses shown by The reality is that we do not have those losses from and we will be realizing a significant amount of cash from the sale of that property. I mentioned ScreamingMedia's public offering earlier, and ScreamingMedia now has a valuation that is roughly 10 times the size of NewsEDGE. NewsEDGE is a $70-million company and ScreamingMedia is a company that did just under $3 million of revenue in their first quarter of this year. We are in a similar business. There are some interesting comparisons that can now be made.

TWST: You mentioned your culling and thought processes behind the recent sale ' what were the criteria?

Mr. Pollan: Basically, our focus now is on executing the strategy that we have defined. There are roughly 2.5 million business-oriented Websites that exist. We are focused on executing across the board to secure those as customers. With our current low stock price, it does not make sense for us to be looking at any acquisitions because we think the stock is significantly undervalued. Our focus is on executing with the 330 people who we have today.

TWST: What's the vision when you look long term? What do you see as the ultimate NewsEDGE?

Mr. Pollan: Our vision is getting compelling content to Websites, to help our partners to track readers, to have those readers come frequently, and then to assist them in making a content-to-commerce connection. When people are reading articles, what are they interested in buying? At the same time, there is an enormous opportunity as we see things like wireless and the need for the same capabilities we have on the Web now in a new area. Also, there is a broad set of external information needed. Our focus today is largely on news and current awareness. We have been working diligently to expand our capabilities in terms of the broad set of needs that a business-oriented Website will have and we are working to accommodate that. Many of our clients are asking us to basically outsource their editorial capabilities and manage the content on their sites. We think that is a very important long-term asset.

TWST: What would be that essential summary message for an investor, that convinces and compels them to buy in?

Mr. Pollan: NewsEDGE has a successful 12-year history of providing news and syndicated content. We are leveraging that, after focusing on the needs of information users in corporations to the broader market, by helping both our current clients and new clients to reach their audience more effectively through their Website. In that case, we move from our target market of the Global 2000 to a broader market of 2.5 million business-oriented Websites. This does not take reinvention, it takes new packaging, pricing and some product development to bring us into an enormous market, and we are ready to rise to the occasion.

TWST: Thank you. (DA)

CLIFFORD M. POLLAN President & CEO NewsEDGE Corporation 80 Blanchard Road Burlington, MA 01803 (781) 229-3000 (781) 229-3030 - FAX e-mail:

Each Executive who is the featured subject of a TWST Interview is offered the opportunity to include an Investors Brief or other highlight material to be provided and sponsored by and for the company.

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