(A) Pro forma net loss excludes amortization of intangible assets, acquisition related non-cash compensation charges, restructuring and certain non-recurring items of $28,408K, $18,312K, and $49,920K for the three months ended June 30, 2001, June 30, 2000, and March 31, 2001, respectively.
(B) International operations accounted for 30.3% of DoubleClick's revenue during the quarter.

TechSolutions¹

The global TechSolutions division reported revenue of $51.8 million in the second quarter, an increase of 6.4% over the same period last year. The company volume was 168 billion across our global DART and email platforms during the second quarter of 2001, up from 149 billion in the same period last year, for an annual increase of 13%.

The TechSolutions division added 228 new clients this quarter. DoubleClick will now be delivering advertising on behalf of DART for Publisher (DFP) clients such as EarthLink, YA.com (the second largest portal in Spain), I-Network and Despegar.com. Also continuing to build on its leadership position, DART for Advertiser (DFA) added new clients MyHomeKey and Orbitz, the latter also signed an AdServer contract for DoubleClick's ad serving software solution, as did TravelCLICK.

Client additions in Asia following DoubleClick's acquisition of Sabela Media's technology on May 2, 2001, have also been impressive. Sixty-eight former Sabela clients, including BMCMedia and i-level, chose to sign onto to DART in the last 60 days, strengthening our leading technology position.

DoubleClick continues to innovate and improve our product offerings. DART 5 offers a more advanced ad management platform and establishes a new paradigm for thinking about interactive marketing. It is focused on making the current workflow processes much more efficient and easier while simultaneously delivering a platform that is the springboard to additional opportunities like wireless, iTV and advanced rich media. Many clients in North America have switched over to the DART 5 platform since its launch on June 12, 2001.

TechSolutions also continued to execute on a key strategic goal to be an industry leader in email marketing. With the pending acquisition of MessageMedia, which is scheduled to close in the third quarter, coupled with the second quarter acquisition of FloNetwork and the success of its own DARTmail technology, DoubleClick is now a clear leader in email marketing automation solutions. The company provides the technology infrastructure, software and services needed for businesses to successfully market to and communicate with millions of customers on the Internet.

Industry-wide, the number of unique email marketing messages is expected to grow at a compound annual growth rate of over 100%. During the second quarter, DoubleClick's email solutions delivered nearly 2 billion emails on behalf of over 250 publishers, merchants and advertising agencies including J. Crew, Wall Street Journal Online and Payless Shoe Source. Also, 45 new clients, such as The Journal of Commerce, Advanta Bank and Harvard Business School Publishing, were added during the second quarter.

"The acquisition of MessageMedia will expand our customer base to over 500 leading direct marketers and increase the number of personalized emails delivered to nearly 750 million per month," said David Rosenblatt, President, Technology and Data. "In addition, MessageMedia's experience in Europe will assist with DoubleClick's expansion into the European email space."

1. Segment revenues in TechSolutions, Data and Media are stated before inter-segment eliminations of $2,999K and $5,343K for the three months ended June 30, 2001 and June 30, 2000, respectively.

Data

The Data division reported quarterly revenue of $19.3 million, up 22% over second quarter of 2000. The core business of Abacus continues to be the leader in catalogue data modeling. A number of focus areas continued to show robust growth - including the B2B alliance, which grew in excess of 37% over the first 6 months of this year, compared to last year.

After rigorous campaign testing in Q4 2000 and Q1 2001, the product suite for applying anonymous profiling to Internet marketing campaigns, Intelligent Targeting, experienced a successful launch with 37 advertiser and publisher clients. Advertisers like Career Journal saw this premium product lift customer conversions over untargeted media. Based on the opportunity for improved ad performance and raised value of online inventory DART clients such as CBS Marketwatch.com and Dialpad now use DoubleClick's Intelligent Targeting technology on their sites.

Diameter's Advertising Effectiveness tools have seen high demand in the marketplace demonstrating the need for research showing the effectiveness of online advertising. In addition to a soon-to-be released study for the DoubleClick Network demonstrating the branding impact of various ad formats, Diameter announced a ground-breaking partnership with research firm IRI and a consortium of eight consumer package goods brands to determine the effects of online advertising on actual purchasing behavior.

Media

The DoubleClick Networks generated global media revenue for the second quarter of $33.8 million, a decrease of 51% versus the same period last year due to the downturn in online ad spending coupled with the absence of AltaVista revenues.

Despite the tough economic environment, the Media division reacted well to their first quarter restructuring. The reorganization created two distinct Networks in the United States, the DoubleClick Brand Network, containing recognized media brands like Kelley Blue Book, NASDAQ, Cheap Tickets, and Better Homes and Gardens, and the DoubleClick Audience Network, offering reach, targeting, and optimization. The new structure showed positive signs as sell-through improved seven percentage points and sales force productivity increased 21%. Also, the proportion of revenues from traditional advertisers grew, from about 59% in Q1 2001, to over 66% in Q2 2001 and nearly 90% of companies that advertised on DoubleClick's Networks in Q1 2001 also did so during Q2 2001.

"The restructuring has leveraged the Media sales force more efficiently and improved client service levels with a dedicated team focused on key sites and advertisers," said Barry Salzman, President of Global Media. "I am excited about the opportunities for Global Media under this new structure."

New advertising clients for Media in Q2 included Universal Studios Pay-Per-View, SAS in Sweden, Omnitel in Italy, and Volvo in Norway. Other new clients include Sweepstakes clients: Moxie Interactive and New York Daily News, and MediaMatch: citysearch.com, blink.com, and jackpot.com. List Services for email, with 32M names under management, signed new clients such as Sporting News, Fastweb, and Office Depot.

Healthy Balance Sheet

At the end of Q2 DoubleClick had $814 million in cash and marketable securities, versus long-term debt of $256 million. Also during the quarter we raised over $25M from the IPO of DoubleClick Japan, in which DoubleClick has a controlling interest.

CFO Stephen Collins explained "We have made good on our commitment to be a leader in both ad serving and email delivery, yet have kept our balance sheet strong. This is a true competitive advantage for us as our customers have confidence that DoubleClick has the financial resources to enhance our technology and maintain world-class operations."

Progress on Privacy

On June 1, 2001, DoubleClick posted its new privacy policy on the company's website for public review, and began soliciting feedback from leaders in the privacy community, public policymakers and consumers. The ten-point privacy policy covering all aspects of the company's operations was restructured to be more customer and consumer friendly.

"Our new policy is part of a corporate commitment to make a strict adherence to privacy a priority across all lines of business," said Jules Polonetsky, Chief Privacy Officer. "DoubleClick's dedicated staff is focused on implementing our own privacy policies and auditing those of our clients. In fact, we have discontinued working with nearly 50 clients that did not adhere to the company's privacy standards."

Second Half 2001 Guidance

DoubleClick is not changing current consensus targets for the combined second half of 2001, which is currently ($0.09).

Segment projections for Q3 2001 are as follows:

Division	Revenue Range ($M)		Gross Margin Range
TechSolutions	$49	$51	61%	63%
Data	$24	$26	64%	67%
Media	$26	$28	27%	29%
Intersegment	($3)	($3)	-	-
Total	$96	$102	53%	56%

Total company operating expenses are expected to be between $68M and $70M, down in absolute dollars. Yield on cash and marketable securities is projected to be 5.5% to 5.8%. There is expected to be a tax provision of approximately $1MM for state, local and foreign taxes. For the third quarter our projected pro forma midpoint per share loss is ($0.06). Stephen Collins noted: "We will continue to take the necessary actions to effectively manage costs, including headcount reductions, to insure that we meet our earnings goals."

Note: This press release includes forward-looking statements, including earnings and revenue projections and future plans. The results or events predicted in these statements may vary materially from actual future events or results. Factors that could cause actual events or results to differ from anticipated events or results include: customer performance challenges, intense competition in our industry, failure to manage the integration of acquired companies, lack of growth in online advertising, changes in government regulation, failure to successfully manage our international operations and other risks that are contained in documents which the Company files from time to time with the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q. Also, it is our company policy to provide such forward-looking information at least once per quarter, but we may choose to not update that information until the next quarter even if circumstances change.

The DoubleClick Conference Call to discuss this earnings press release is scheduled for: Tuesday, July 10, 2001, at 5:00pm EST. A follow-up conference call at 7:00pm EST will address financial questions in greater detail. These calls will be available live via webcast, and on a replay basis afterward, on the Company's website at: http://ir.doubleclick.net.

A complete listing of DoubleClick's metrics can be found on the Company's website at www.doubleclick.net, under Investor Relations; or at http://ir.doubleclick.net.

About DoubleClick
DoubleClick (www.doubleclick.net) is building the infrastructure that makes marketing work in the digital world. Combining media, data, research and technological expertise, DoubleClick allows marketers to deliver the right message, to the right person, at the right time, while helping Web publishers maximize their revenue and build their business online. DoubleClick Inc. has Global headquarters in New York City and maintains 37 offices around the world.

DOUBLECLICK INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited, in thousands except for per share amounts)
	Three Months Ended		Six Months Ended
	June 30		June 30
	2001 (Unaudited)	2000 (Unaudited)	2001 (Unaudited)	2000 (Unaudited)
Revenue:
Technology	$ 51,796	$ 48,650	$ 106,716	$ 88,428
Media	33,799	68,989	79,893	129,179
Data	19,339	15,791	37,553	30,518
Intersegment elimination	(2,999)	(5,343)	(7,357)	(9,982)
Total revenue	101,935	128,087	216,805	238,143
Cost of revenue	46,396	59,539	96,732	112,016
Gross Profit	55,539	68,548	120,073	126,127
Operating Expenses:
Sales & marketing	41,734	49,733	92,153	95,661
General & administrative	16,621	22,060	36,156	42,899
Product development	14,487	11,152	28,436	20,851
Total operating expenses	72,842	82,945	156,745	159,411
Loss from operations	(17,303)	(14,397)	(36,672)	(33,284)
Other income (expense):
Equity in income (losses) of affiliates	(203)	(385)	329	(667)
Interest and other, net	7,671	11,663	16,437	18,613
Total other income	7,468	11,278	16,766	17,946
Loss before income taxes	(9,835)	(3,119)	(19,906)	(15,338)
Provision for income taxes	(693)	(701)	(1,752)	(1,632)
Loss before minority interest	(10,528)	(3,820)	(21,658)	(16,970)
Minority interest in results of consolidated subsidiaries	1,013	-	1,644	-
Pro forma net loss	$ (9,515)	$ (3,820)	$ (20,014)	$ (16,970)
Basic and diluted pro forma net loss per share	$ (0.07)	$ (0.03)	$ (0.15)	$ (0.14)
Weighted average shares used in basic and diluted pro forma net loss per share	131,698	122,265	129,154	119,552

DOUBLECLICK INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited, in thousands except for per share amounts)
	Three Months Ended		Six Months Ended
	June 30		June 30
	2001 (Unaudited)	2000 (Unaudited)	2001 (Unaudited)	2000 (Unaudited)
Revenue:
Technology	$ 51,796	$ 48,650	$ 106,716	$ 88,428
Media	33,799	68,989	79,893	129,179
Data	19,339	15,791	37,553	30,518
Intersegment elimination	(2,999)	(5,343)	(7,357)	(9,982)
Total revenue	101,935	128,087	216,805	238,143
Cost of revenue	46,396	59,539	96,732	112,016
Gross Profit	55,539	68,548	120,073	126,127
Operating Expenses:
Sales & marketing	41,734	49,733	92,153	95,661
General & administrative	16,621	22,060	36,156	42,899
Product development	14,487	11,152	28,436	20,851
Amortization of intangibles	15,292	10,133	25,909	18,538
Non-cash compensation	10,656	5,233	15,492	9,855
Purchased in process research and development	1,300	-	1,300	-
Restructuring charge	1,647	-	30,680	-
Total operating expenses	101,737	98,311	230,126	187,804
Loss from operations	(46,198)	(29,763)	(110,053)	(61,677)
Other income (expense):
Equity in losses of affiliates	(897)	(3,331)	(2,042)	(4,759)
Gain on equity transactions of affiliates, net	5,681	-	1,924	8,949
Interest and other, net	3,171	11,663	11,937	18,613
Total other income	7,955	8,332	11,819	22,803
Loss before income taxes	(38,243)	(21,431)	(98,234)	(38,874)
Provision for income taxes	(693)	(701)	(1,752)	(1,632)
Loss before minority interest	(38,936)	(22,132)	(99,986)	(40,506)
Minority interest in results of consolidated subsidiaries	1,013	-	1,644	-
Net loss	$ (37,923)	$ (22,132)	$ (98,342)	$ (40,506)
Basic and diluted net loss per share	$ (0.29)	$ (0.18)	$ (0.76)	$ (0.34)
Weighted average shares used in basic and diluted net loss per share	131,698	122,265	129,154	119,552

DOUBLECLICK INC. RECONCILIATION FROM PRO FORMA TO GAAP NET LOSS (Unaudited, in thousands)
	Three Months Ended		Six Months Ended
	June 30		June 30
	2001 (Unaudited)	2000 (Unaudited)	2001 (Unaudited)	2000 (Unaudited)
Pro forma net loss	$ (9,515)	$ (3,820)	$ (20,014)	$ (16,970)
Amortization of intangibles	15,292	10,133	25,909	18,538
Non-cash compensation	10,656	5,233	15,492	9,855
Purchased in-process research and development	1,300	-	1,300	-
Restructuring charge	1,647	-	30,680	-
Non-cash/non recurring-ValueClick investment	694	2,946	2,372	4,092
Write-down of investment	4,500	-	4,500	-
Gain on DoubleClick Japan issuance of stock	(7,172)	-	(7,172)	-
(Gain)/ loss on ValueClick issuance of stock	1,491	-	5,247	(8,949)
Total	28,408	18,312	78,328	23,536
GAAP net loss	$ (37,923)	$ (22,132)	$ (98,342)	$ (40,506)

Amortization of intangibles

These amounts primarily represent the amortization of goodwill acquired in purchase business combinations, as well as the amortization of identifiable acquired intangible assets.

Non-cash compensation

These amounts primarily reflect the expense related to the additional shares of common stock that were contingently issuable to the former shareholders of DoubleClick Scandinavia based upon their continued employment and the attainment of specific revenue objectives following the company’s merger with DoubleClick in December 1999. In May 2001, DoubleClick agreed to fix the amount payable to the former shareholders at the minimum consideration they were entitled to receive under the terms of the original agreement.

Purchased in-process research and development

This amount reflects the portion of the purchase price paid for FloNetwork that was attributable to its research and development projects that had been commenced but not yet completed at the date of acquisition, for which technological feasibility had not been established and which have no alternative future uses. In accordance with Statement of Financial Accounting Standards No. 2, Accounting for Research and Development Costs, and FASB Interpretation No. 4, amounts assigned to purchased in-process research and development meeting the above criteria must be charged to expense at the date of the consummation of the business combination.

Restructuring charge

These amounts represent charges for severance-related payments to terminated employees, the accrual of future lease costs (net of estimated sublease income and deferred rent) and the write-off of fixed assets for office locations that were closed or consolidated as the result of restructuring activities in 2001.

Non-cash/non-recurring-ValueClick investment

These amounts represent the amortization of the goodwill associated with DoubleClick’s equity investment in ValueClick, as well as DoubleClick’s proportionate share of ValueClick’s own goodwill amortization, non-cash compensation and non-recurring charges.

Write-down of investment

This amount reflects the impairment charge recognized by DoubleClick in relation to its cost-method investee Return Path.

Gain on DoubleClick Japan issuance of stock

This amount reflects the gain associated with the portion of DoubleClick’s interest in its consolidated subsidiary DoubleClick Japan that was deemed sold to minority shareholders as the result of DoubleClick Japan’s initial public offering in 2001.

Gain/loss on ValueClick issuance of stock

These amounts reflect the gain or loss attributable to the portion of DoubleClick’s equity interest in ValueClick that was deemed sold to third parties as the result of ValueClick’s business combinations in 2001 and its initial public offering in 2000.

DOUBLECLICK INC. CONDENSED CONSOLIDATED BALANCE SHEET (in thousands)
	June 30, 2001 (Unaudited)	December 31, 2000
Assets
Cash and cash equivalents and investments in marketable securities	$813,816	$873,376
Accounts receivable, net	89,668	120,029
Prepaid expenses and other assets	51,699	46,714
Property and equipment, net	169,896	168,192
Investment in affiliates	28,719	37,457
Intangible assets	159,580	52,775
Total assets	$1,313,378	$1,298,543
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$55,869	$81,038
Accrued expenses and other current liabilities	80,230	96,002
Deferred revenue	25,252	33,590
Convertible subordinated notes and other long-term obligations	266,815	265,609
Total liabilities	428,166	476,239
Minority interest in consolidated subsidiaries	20,160	5,247
Stockholders' equity	865,052	817,057
Total liabilities and stockholders equity	$1,313,378	$1,298,543

DOUBLECLICK INC. CONSOLIDATED CONDENSED CASH FLOW (In thousands)
	Three Months Ended		Six Months Ended
	June 30		June 30
	2001 (Unaudited)	2000 (Unaudited)	2001 (Unaudited)	2000 (Unaudited)
OPERATING ACTIVITIES
Net loss	$ (37,923)	$ (22,132)	$ (98,342)	$ (40,506
Adjustments to reconcile net loss to net cash   provided by (used in) operating activities:
Depreciation and amortization	28,436	18,438	51,770	32,382
Non-cash compensation	10,656	5,233	15,492	9,855
Restructuring charge	1,647	-	30,680	-
Cash paid in connection with restructuring	(5,661)	-	(7,081)	-
Other non-cash items	5,201	14,388	19,356	18,870
Other changes in working capital	(11,323)	(13,956)	(19,695)	(23,714)
Cash provided by (used) in operating activities	(8,967)	1,971	(7,820)	(3,113)
INVESTING ACTIVITIES
Purchases of property and equipment	(15,618)	(41,593)	(44,919)	(77,640)
Acquisition of businesses and intangible assets, net of cash acquired	(21,336)	(16,960)	(38,966)	(22,527)
Investments in affiliates and other	-	-	(963)	(10,380)
Cash used in investing activities	(36,954)	(58,553)	(84,848)	(110,547)
FINANCING ACTIVITIES
Proceeds from the issuance of common stock and the exercise of stock options, net	4,374	859	7,243	551,964
Proceeds from DoubleClick Japan stock issuance, net of offering costs	25,425	-	25,425	-
Other	(1,011)	(201)	(1,494)	(291)
Cash provided by financing activities	28,788	658	31,174	551,673
Effect of exchange rate changes in cash	(705)	102	(3,603)	(213)
Change in fair market value of marketable securities	195	(81)	5,537	(621)
Net (decrease) increase in *cash	(17,643)	(55,903)	(59,560)	437,179
*Cash at beginning of period	$831,459	$937,885	$873,376	$444,803
*Cash at end of period	$813,816	$881,982	$813,816	$881,982

*Includes cash, cash equivalents, and marketable securities.

Credits: DoubleClick.net