Joe Firmage

2. The Past, Present, & Future of Our Firm Joe Firmage

3. Agenda • The Year in Review - Aggregation • USWeb Charter • Business Accomplishments • Financial Condition • Stock Performance • Our Present Priorities - Leverage • Pricing • Time Management • Knowledge Management • Professional Development • Recruiting • Community • Brand Development • The Year in Preview - Optimization • Organizational Structures • Measurement • Incentive Compensation

4. Top Ten Reasons “I missed my number” • Reason #10 “I spent too much time trying to figure out how to beat the valuation model” • Reason #9 “bruce changed the valuation model on me” • Reason #8 “my backlog will kick in next quarter” • Reason #7 “I spent too much time watching the stock” • Reason #6 “my wife spent too much time watching the stock”

5. Top Ten Reasons “I missed my number” • Reason #5 “kurt and bob hate me” • Reason #4 “I hit my number, but GAAP won’t allow it :)” • Reason #3 “jeannie minter won’t let me sign a contract with unlimited liability” • Reason #2 “the dog ate my html code”

6. Top Reason “I missed my number” • Reason #1 “I’ll definitely make it up next month”

7. Our Mission To pioneer improved methods of communication and commerce in the information age.

8. Our Value To Clients • We help our clients achieve their objectives for revenue, profit, market share and customer loyalty • We use the Internet medium and related technologies to transform internal and external business processes • We serve as a long-term partner for our clients

9. Our Priorities • Clients - Our business. We succeed when we exceed their expectations. • People - Our most important asset. We succeed when we recruit, train and retain them best. • Knowledge - Our value proposition. We succeed when we acquire, cultivate, exchange and deploy it effectively.

10. Our Priorities • Partners - Our allies. We succeed when we achieve our joint objectives and continuously strengthen our relationships. • Shareholders -They fuel our growth. They will succeed if our clients, people, knowledge and partners are well served.

11. Individual Values USWeb is a reflection of our people and the core values by which they live. IntegrityWe do the right thing. We are honest and straight forward. We uphold the values and principles of USWeb in every action and decision. ProfessionalWe are open courteous and responsive. We are fiscally responsible and deliver the highest quality and best results. FlexibleWe embrace and adapt to change and when a situation warrants it, we change course. People Our most important asset. PassionateWe believe in what we do and expect the highest results. We relentlessly pursue initiatives and are driven to excel. IntelligentWe use knowledge, experience and expertise to solve problems and make sound decisions considering all facts. CollaborativeWe are one team and contribute and leverage knowledge and expertise to deliver the best solution. DynamicWe act quickly and take calculated risks. We make decisions and execute with speed and momentum.

12. Company Values We build success through company values in support of our individual values. Recognize and RewardWe recognize and reward our people for performance that meets and exceeds our expectations. Hire the bestWe recruit and retain the best and brightest people. We build our organization from within and provide a world class environment for our employees. Be ParanoidWe are always aware of what our competition is doing. BalanceWe promote and encourage a balance between our personal and professional lives. Individual Values ExpectationsWe set expectations early and realistically and meet commitments promptly. CommunicateWe share knowledge throughout the organization and are open and honest in all our communications. Strategy and TacticsWe focus on setting our strategy first and executing with tactics. ConfrontWe confront our weaknesses and mistakes and learn from our successes and failures. Clients FirstWe measure our success by our client’s success and satisfaction.

13. Business Accomplishments • Built #1 pure-play brand • Built #1 market share • Over 1000 employees • Serve 22 of Fortune 100 • 27 acquisitions completed • Successful IPO & secondary offering • Garnered over 800 articles • Greater than $80M annual revenue • Formed and financed USWeb Learning • Started international expansion • Created $700M in shareholder value • Launched successful client reference program

14. Financial Condition • Met or exceeded analyst expectations for two quarters running • M&A at 100% of original 98 plan, 66% of new 98 plan already • Intrinsic growth ahead of expectation • Expect to break EBITDA profit in Q4 • $65 million in cash

15. Financial Performance/Expectations 000s

16. Major Account Penetration 000s

17. Comparables We Watch

18. 52 Week Volatility to Present • Lack of profits = speculative concept play • Internet sector volatility • Rumors and innuendo • Questions over integration • Aggressive short positions

19. How to Impact the Stock Price? • Build a great firm!! • Pricing • Time Management • Knowledge Management • Professional Development • Recruiting • Community • Brand Development

20. Our Firm Pricing Client Satisfaction Business Dvlpmnt Delivery Prospects Client Acquistion RepeatBusiness Marketing & PR Knowledge Management Finance, legal, prof development, community

21. Pricing • Gross margins are projected to improve by 15 points over the next 7 quarters • Gross margins can only be impacted by price, utilization, and efficiency • Pricing - the single most important near-term area for improvement • Too often we’re pricing as small development firms • We must: • Consistently and explicitly sell and charge for advice • Raise service pricing by 3-5%/quarter for next 4 quarters • Leverage our footprint

22. Our Firm Client Satisfaction Business Dvlpmnt Delivery Prospects Client Acquistion RepeatBusiness Time mgmt Marketing & PR Knowledge Management Finance, legal, prof development, community

23. Time Management • Utilization is the measure of available staff time committed to billable engagements -- “what % of your billable resource (cost) is billed vs. idle?” • Utilization is assessed through time management • Time tracking is inconsistently implemented today across the firm, therefore uniform utilization measurements are difficult • System will be deployed in Q2-Q3 across the company • Every individual will have the responsibility to record time • Reporting will be automatic

24. Our Firm Client Satisfaction Business Dvlpmnt Delivery Prospects Client Acquistion RepeatBusiness KnowledgeMgmt Marketing & PR Knowledge Management Finance, legal, prof development, community

25. Knowledge Management • Effective knowledge management improves efficiency -- do more with less by reusing intellectual property and skills • Knowledge management has made remarkable strides: • Project registry • Methodology library • Technology library • Skills registry • Presentations library • The starting points for these systems are ready. Now they must be used to improve! If you find something useful, tell the KM group. If you find something useless, tell the KM group.

26. Our Firm Client Satisfaction Business Dvlpmnt Delivery Prospects Client Acquistion RepeatBusiness Marketing & PR ProfDevelopment Knowledge Management Finance, legal, prof development, community

27. Professional Development • Objective: provide a compelling long-term career path for every professional • Create programs that encourage employee development • Company-wide career matrix is in deployment now • Encourage and measure behavior in alignment with company charter • Provides consistent measurement, advancement, and compensation plan • We will introduce formal programs before the end of 1998 for awards, fellowship and continuing education

28. USWeb Career Matrix

29. Recruiting • Quality of our professionals will always be the #1 firm priority, period. • Continuing or launching: • Advertising • SiteCast • Increasing HQ-funded staff at HQ and the field to assist • Recruiting as a shared job function for everyone

30. Our Firm Client Satisfaction Business Dvlpmnt Delivery Prospects Client Acquistion RepeatBusiness Community Marketing & PR Knowledge Management Finance, legal, prof development, community

31. Community • Objective: bind the network into a firm • 3 components: • Program mgmt • Planning • Coordination • Implementation • Systems • Communications • Integrated e-mail • Threaded discussions • Video conferencing • Chat/instant messages • Expert SiteCasts • Community web sites • Communities of • Discipline • Practice • Group • Role • Interest

32. Our Firm Client Satisfaction BrandDevelopment Business Dvlpmnt Delivery Prospects Client Acquistion RepeatBusiness Marketing & PR Knowledge Management Finance, legal, prof development, community

33. Generating Awareness & Interest • Advertising • Collateral • usweb.com • Business dev. • Public relations Brand Development Target Audience Model All business purchase influencers= 25.8M Responsible for Internetexpenditures= 4.2M In co’s with 250+ empl= 1.3M Senior Mgmt = 616K

34. Brand Awareness Programs • Unify branding into one master brand with three sub-branded disciplines • Focus group testing • Revised key messages • New positioning rollout

35. Advertising • Wall Street Journal positioning ad -- 2 full page insertions in mid-June • Client solutions campaign continues (successor to Harley ad) • Focus on business publications • Launch on-line component of solutions campaign

36. Collateral • Revised client presentation • Practice collateral • Methodology fact sheet • White papers

37. usweb.com • Overhauled site launched in Q3 • Update professional services “look and feel” • Refined focus on disciplines and practices • Portfolio approach to clients • Stronger use of news

38. Business Development • Assistance on best seminar practices • Infrastructure (on-line registration, turn-key registrations, etc.) • Content: e-commerce, healthcare, and locally-developed • 16 seminars will be conducted in Q2

39. Public Relations • 850 articles to date, 125 in Q1 • Client reference program • New three-tier architecture for press releases • Level A: Significant news for the entire company • Level B: Company news and regional successes • Level C: Informational announcements • Field may now submit proposed releases into HQ PR • “Future of the Internet” SiteCall Series launches in June

40. A Preview of the Next Year • Organizational Structures • Financial Systems • Incentive Compensation Program • Vision Revisited

41. Disciplines and practices are simply communities that focus on dimensions of expertise.

42. Current Market Landscape • Internet professional services market space is undefined • The “noise-factor” has increased dramatically • Competition and consolidation have heated up significantly • Generalists will win only by banding together specialists

43. Andersen Consulting BCG McKinsey Bain Booz-Allen Big “5” CKS IXL Organic Rare Medium Agency.com Studio Archetype Modem Media Magnet c2o IBM GS CTP EDS Sapient WH Andersen Renaissance Viant Proxicom Competitive Landscape

44. Application development E-commerce Network operations & security Network implementation Database & ERP integration Legacy integration Business plan development Market strategy Competitive analysis Needs analysis Implementation audits Risk management Online brand development Audience development User experience & design Digital media production USWeb Disciplines 125 Professionals 250 Professionals 525 Professionals

45. Practices • Service Practices • Business Strategy • Business Applications • E-Commerce • Audience Development • Enterprise Resource Planning • Digital Content • Network Solutions • Advanced Hosting • Internet Data Warehousing • Communications & Community • Knowledge Management • Industry Practices • Manufacturing • Healthcare & Life Sciences • Financial Services • Entertainment & Media • Consumer Products & Services

46. USWeb, Disciplines, Practices & Groups • USWeb: a community focused on Strategic Internet Services • Discipline: a community focused on a broad category of expertise, developing broad methodologies • Service Practice: a community focused on a functional client need, developing task-focused methodologies • Industry Practice: a community focused on an industry need, developing industry-focused methodologies • Group: a community focused on serving a targeted set of clients, organizing professionals from different disciplines and practices into implementation teams

47. Present • USWeb • Discipline • Practice • Group • Past • USWeb • Discipline • Practice • Group Brand Brand Market Market Measure Measure • Future • USWeb • Discipline • Practice • Group Brand Measure USWeb, Disciplines, Practices & Groups

48. Awareness Interest Consideration Engagement Consult Build Deploy Resources Forecasting Fulfillment • Utilization • Bill rates • Avg $/client/yr • DSO • Categorization • Retention • Revenue • Margins • Growth • Headcount Financial Infrastructure

49. Group P&L Group P&L Client P&L Discipline P&L Practice P&L Partner P&L Measurement Vectors Resource Revenue

50. Incentive Compensation • Outside of earnout, and in addition to initial stock option grants, all professionals will participate in the USWeb Incentive Stock Option Plan: • Roughly 4-5% of the company’s equity is expected to be allocated annually • Earned through point system tied to P&L of groups • Groups earn points through (1) intrinsic revenue & profit (2) intragroup subcontracting (3) great citizenship and (4) client satisfaction • Partners receive 50% of group earnings, divided equally • All others receive remaining 50%, as determined by managing partner and approved by executive partner • Points are earned monthly and optionsare granted annually