Latest transactions and investments April 2000

October 1999 Allen gets $1 billion loan for new acquisitions

Paul Allen the co-founder of Microsoft Corp and ownerof Charter Communications Inc. is borrowing $1 billion from Commerzbank AG and other lenders to finance more acquisitions. Allen is using Microsoft shares as collateral for the five year loan and will pay a floating interest rate of 125 basis ponts over the London interbank offered rate. That's equivalent to about 7% Through Vulcan Ventures Inc. Allen has in the past made acquisitions valued at about $12 billion, building on his vision of creating a so called wired world, where consumers have access to most entertainment and communicaitons services through the internet. Just this month Vulcan agreed to invest $355 million in Allegiance Telecom Inc, a phone and data service provider, and increase its stake in Replay Networks Inc. Replay makes an advanced recording device that lets users customize their TV viewing. It's not the first time Allen has sought financing from a group of banks. In 1995 he financed a $500 million investment in film director Stephen Spielberg's Dream Works SKG with a loan arranged by Chemical Bank, now Chase Manhattan Corp. In May lasy year he borrowed $1 billion in a loan arranged by Chase to invest in Charter Communications, a cable-television operator that last month announced plans for a $3.45 billion initial public ofering. That loan was backed by Microsoft stock. Commerzbank was a co-aranger of that loan. Commerzbank is the lead aranger of the current loan. Credit Lyonnais, Bank of Montreal and Paribas SA are co-arrangers, agreeing to lend $125 million each. As of June, Allen owned 135.9 million shares in Microsoft or 2.47 percent of the world's biggest software maker, a stake valued at about $15 billion.

Paul Allen ranks as the third-richest American with a fortune estimated at $7.5 billion. He directs his wealth towards dramatic change.

What he Owns:

We think his most important investment is Teledesic

The Paul G. Allen Charitable Foundation

Areas of Emphasis include education, environmental research, youth services, social services and aid to the disabled and disadvantaged

The Paul G. Allen Foundation for Medical Research

Funds medical research, especially projects for preventing or treating cancer.

The Allen Foundation for the Arts

Supports both performing and visual arts in the Northwest. Recipients include ACT theater, Seattle Children's Theater, Oregon Shakespere Festival and Wing Luke Asian Museum.

The Experience Music Project Foundation

Supports nonprofit arts, music and education groups that help people experience creativity in music. Recipients include the Pacific Jazz Institute, the University of Washington World Dance Series and jackson Street After Hours.

Rose Garden

Portland arena that is home to the Trailblazers, Allen's professional basketball team. Allen owns and operates the $262 million arena. $35 million of that cam from public funds. The state-of-the-art arena features more than 750 video screens that allow people to watch instand replays, even while they're in the batchroom. The arena is also used for concerts.

Seattle Commons

Allen planned to give $21 million to a group trying to start a 61 acre park and residential area near downtown Seattle. Voters were twice asked to approve an increase in property taxes to pay for the public's share of the park. Each time it was turned down and Allen took his property back.

TicketMaster

Sells nearly 60 million tickets a year for concerts and sporting, performing arts and theatrical events throughout the United States, Canada, Mexico, Europe and Australia. Allen holds a majority stake in the company.

Egghead

Sells computer sodtware and accessories in more than 150 stores across the United States.

PetSmart

Operates 341 pet supply superstores in North America, 56 in the United Kingdom.

Starwave

Ceeates Interactive products and runs several web sites, including ESPNET Sportszone, Mr. Showbiz and Outside Online.

Dreamworks SKG

Produces live-action and animated motion pictures and television programming, records, books, toys and interactive entertainment. Formed by Steven Spielberg, Jeffrey Katzenberg and David Geffen.

N2K

Runs several genre-specific and artist music web sites. Sites include Rocktropolis, Jazz Central Station and the Rolling Stones' Stones World.

Consumer's Edge

Web site that helps consumers make purchasing decisions. Subject areas include new and used cars and trucks, mutual funds, colleges, office equipment, travel, restaurants, exercise equipment, consumer electronics, leisure activities, real estate and relocation, and careers.

Storyopolis

Produces film, television and multimedia programming for children.

Trilobyte

Manufactures three dimensional CD-ROM games.

Digital Evolution

Develops new media technologies with emphasis on the internet, databases and electornic commerce, CD-ROM and interactive kiosk networks.

Media Link

Creates Multimedia networking products.

MetaTools

Makes software for creating computer graphics

Multimedia Asia Pacific

Provides multimedia and internet technology throughout the Asia-Pacific

Silcon Engines

Makes 3-D graphics hardware

Transmeta

Makes multimedia processing equipment for personal computers.

MERCER ISLAND HOME

Allen has a six acre compound on Lake Washington. It features a 20 seat theater, regulation-size basketball gym, indoor tennis court, pool and waterfall.

Port Quendall

60-acre site along Lake Washington just north of Renton. The proposed business park would cost $500 million to $700 million and would include 2 million to 2.5 million square feet of office space. One third of the site would house four Allen companies: Asymetrix, Starwave, Vulcan Ventures and the Paul Allen Group

Sperry Peninsula

Allen bought 385 acres on Lopez Island in the San Juans to build a private family retreat.

Seattle Commons

The largest section of land near downtown Seattle was to be used for a public park, but voters twice turned down an increase in property taxes to pay the public's share of the bill, so Allen took his land back. He's reportedly considering using it for a high technology business park.

Portland Trailblazers

Professional basketball team

Football Northwest

Allen's company to evaluate the Seattle Seahawks and handle his option to buy the team.

Commonly referred to as the Jimi Hendrix museum, the 110,000 square-foot facility is scheduled to open at the Seattle Center in 1999. The museum originally was intended to honor Hendrix/ It will still do that, but also will cover the hisotry of popular music culture.

Metricom

Provides two-way wireless data netwroks.

Precision Systems

Makes software that runs wireless and wireline communications networks.

United States Satellite Broadcast Company

Digital satellite broadcast company. Partners with Direct TV, the company that makes small satellite dishes to allow homes to receive mor ethan 200 channels of digital programming.

ARI Network Services

Provides electronic commerce services for several industries, including agribusiness, freight transportation and newspapers. It helps those companies communicate better with their trading partners.

Certicom

Markets information security products and develops cryptographic technologies.

CyberSource

Makes software to process transactions and to deliver purchased software through the internet.

Harbinger

Develops software for electronic commerce and exchanging business documents.

NetPerceptions

Produces software that allows web site developers to specially tailor their sites to individual users.

Telescan

Makes investment software and maintains a database used by investors.

Microsoft

Allen cofounded the software giant with Bill Gates. Allen quit the company in 1983 but remains on its board of directors and holds about 9 percent of its stock. Microsoft makes the software that runs most personal computers, as well as programs for word processing and financial analysis. Microsoft also is involved with web publishing and creating products that help software developers write programs.

Asymetrix

Develops programs to make computer-based training materials and for publishing on the World Wide Web.

InfoModelers

Produced a product that makes it easier for large businesses to create and maintain databases.

Vision Software

Makes software that automates writing some of the programs used to exchnage information within medium-to-large-scale companies.

Academic Systems

Develops Multimedia teaching materials with colleges and universities. The materials are based on a learner-centered faculty-guided model of instruction called "mediated learning".

NETschools

The company wants to place a "child proof" computer on the desks of every student from kindergarten through 12th grade. The computers would have multimedia software to make learning fun and a connection to the internet.

Siliscape

Develops small computer screens.

TeraStor

Researches technology for high-capacity storage devices.

Interval Research

Researches how technology will impact individuals and experiments with various technological possibilities.