FairMarket Inc., a provider of leading online auction and promotion technology, announced financial results for its fourth quarter and full year ended December 31, 2002. The company also said it hired a new Vice President of Worldwide sales.

For the fourth quarter of 2002, FairMarket reported revenue of $1.7 million, an increase of $319,000 compared to revenue of $1.3 million in the fourth quarter of 2001. Included in the revenue increase for the fourth quarter was the recognition of deferred revenue of approximately $290,000 resulting from the early termination of the Company's contract with eBay related to the Burger King promotion's program, which would have been recorded over the remaining term of the contract.

Net loss for the fourth quarter of 2002 was $534,000, or $0.02 loss per share, compared to a net loss of $6.9 million, or $0.24 loss per share, for the fourth quarter of 2001. Starting with the second quarter 2002, the company has shown a decrease in net losses each quarter for three consecutive quarters.

Revenues for the full year 2002 totaled $5.7 million, a $2.8 million decrease from revenue of $8.6 million in 2001. Net loss for the full year 2002 was $22.1 million or $0.79 loss per share, a 45% improvement versus a loss of $40.2 million, or $1.39 loss per share for 2001.

FairMarket said its growing relationship with advertising agencies has had a positive impact on the company, bringing in such signature accounts as Dr. Pepper/Seven Up, Inc., Kellogg's, American Express, H.J. Heinz, and in the U.K, De Vere Group and the Bertlesman Group. The total contract value of all deals executed in the fourth quarter was approximately $1.6 million. Its relationship with advertising agencies enables them to deliver compelling online client programs quickly, reliably and cost effectively. As eBay's exclusive partner for private labeled, point-based auction programs, FairMarket can also help marketers to leverage the eBay community in running these programs.

Due to the current macroeconomic conditions, FairMarket does not expect to achieve operating cash flow breakeven during the first half of 2003 as previously reported.

FairMarket also announced that David George has joined the Company as Vice President of Worldwide Sales. George is responsible for FairMarket's sales infrastructure including direct and indirect sales channels worldwide. He joins FairMarket from NetGenesis Corporation where he held a number of executive level positions domestically and internationally.

http://www.fairmarket.com