First, Bankrate.com offers consumers the information they need to make an informed choice for all the major personal finance products. Second, no other site has as many banks and other lenders contributing rate information, displayed according to a completely objective ranking system. This neutrality is a key reason for the trust consumers have in our brand.

Finally, while we do not advertise, we are receiving a great deal of free publicity from satisfied visitors to our site as well as from financial experts and advisors answering questions on where to go for more education and rate information.

An essential key to our success is that our advertisers know that the Bankrate user is ready to make a decision. Consumers are not willing to make some of their largest spends like mortgages completely online. Our hyperlink advertising subscription business provides the basic information and links which enable consumers to connect with ease and speed with lenders that meet their specific needs.

Our advertising rates remain the highest in our industry, a clear indication of the incredible value of the Bankrate brand. Our pricing power is reflected in the price increase for hyperlink advertising which went into effect at the beginning of 2003. Because of our stable expense base, we have been able to drive an increasing proportion of our ad revenue to our bottom line.

The sharp decline in interest rates naturally benefited a large portion of our business, home mortgages refinancing in 2002 and has continued strong so far in 2003. At this time, rates are the lowest they have been in over 30 years. Refinance to new purchases continue at about 60/40 ratio, which is practically the reverse of the norm.

The industry analysts that we rely on to forecast the future for rates believe that this low rate environment and the high refinancing could continue through year-end 2003. However, there are many other factors that bring consumers to our site. When rates rise consumers typically become more interested in home equity loans as opposed to refinancing and a return to the normal 40/60 ratio of refinancing to new purchases takes place. More importantly, over the past 10 years purchases of new homes have grown at an average 8% year-over-year.

Finally higher rates also result in higher traffic for other products like CD’s. Whether rates are going up or down, consumers need advice about where to get the best rates and other personal finance information.

Rate data and editorial content provides consumers important information that they use when selecting which lender to use for their mortgages, auto loans or home equity loans, as well as many other consumer banking products. Consumer confidence in our brand is invaluable to advertisers who recognize that they can reach a growing number of new customers on the Internet through Bankrate.com.

We also have more than 80 partners, including top tier Web sites such as AOL, Yahoo!, MSN, Bloomberg, USA Today and Nasdaq. Websites like these recognize that that they need to provide their audience with the most timely and in-depth information and advice that is only available through Bankrate.

Actually, there is no limit because the Internet is very different from other media. Newspapers and magazines have a proscribed amount of space for advertising, while broadcast media has a similar “air time” limitation. For Bankrate, our ability to grow our advertising base is directly linked to audience growth. As traffic to our site continues to increase – it is now over 1 million page views per day-- we actually generate more inventory that advertisers can buy. As more consumers visit our site, they choose the ads and links that they want to view.