**UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549**

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**FORM 10-Q**

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(Mark One)

**[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
             SECURITIES EXCHANGE ACT OF 1934**

**For the Quarterly Period Ended September 30, 2002**

**OR**

**[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934**

**For the transition period from ________to _________**

**Commission file number 000-25113**

**MARKETWATCH.COM, INC.**
(Exact name of Registrant as specified in its Charter)



|**Delaware**                                                   | **94-3315360**                         
|-------------------------------------------------------------- | ---------------------------------------
|(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number)

**825 Battery StreetSan Francisco, California     94111**(Address of Principal Executive Offices)

**(415) 733-0500**(Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required
by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the Registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days:    YES [X]    NO [  ]

The number of shares of the Registrants' Common Stock outstanding as of November 1,
2002 was 17,059,618.







MarketWatch.com, Inc.

Quarterly Report on Form 10-Q for the Period Ended September 30, 2002

Table of Contents







|**PART I. FINANCIAL INFORMATION**                                                                    | **Page No.**
|---------------------------------------------------------------------------------------------------- | ------------
|                                                                                                     |             
|Item 1. Interim Condensed Financial Statements:                                                      |             
|                                                                                                     |             
|Condensed Balance Sheets 
at September 30, 2002 (unaudited) and December 31, 2001                    | 3           
|Unaudited Condensed Statements of Operations 
for the three months ended September 30, 2002 and 2001 | 4           
|Unaudited Condensed Statements of Cash Flows 
for the three months ended September 30, 2002 and 2001 | 5           
|Notes to Condensed Financial Statements (unaudited)                                                  | 6           
|Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations        | 9           
|                                                                                                     |             
|Item 3. Quantitative and Qualitative Disclosures About Market Risk                                   | 26          
|                                                                                                     |             
|Item 4. Controls and Procedures                                                                      | 27          
|                                                                                                     |             
|**PART II. OTHER INFORMATION**                                                                       |             
|                                                                                                     |             
|Item 1. Legal Proceedings                                                                            | 27          
|                                                                                                     |             
|Item 6. Exhibits and Reports on Form 8-K                                                             | 28          
|                                                                                                    
|**SIGNATURES**                                                                                       | 29          
|                                                                                                    
|**CERTIFICATIONS**                                                                                   | 30          






Part I -- FINANCIAL INFORMATION

Item 1. Interim Condensed Financial Statements

MarketWatch.com, Inc.

Condensed Balance Sheets

(in thousands)



`September 30,  December 31,
                                                           2002          2001
                                                       ------------  ------------
                          Assets
Current assets:
  Cash and cash equivalents .......................... $     41,062  $    37,637
  Accounts receivable, net ...........................       6,778         8,263
  Prepaid expenses ...................................         896           756
                                                       ------------  ------------
          Total current assets .......................      48,736        46,656

Property and equipment, net ..........................       7,427         9,533
Goodwill, net ........................................      22,429        21,179
Other assets .........................................         148           145
                                                       ------------  ------------
          Total assets ............................... $    78,740   $    77,513
                                                       ============  ============

  Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable ................................... $     3,005   $     4,004
  Accrued expenses ...................................       5,788         4,162
  Deferred revenue ...................................         795           296
                                                       ------------  ------------
          Total current liabilities ..................       9,588         8,462
                                                       ------------  ------------

Stockholders' equity:
  Preferred stock ....................................           -             -
  Common stock .......................................         176           168
  Additional paid-in capital .........................     320,985       319,940
  Contribution receivable ............................        (344)       (9,899)
  Accumulated deficit ................................    (251,665)     (241,158)
                                                       ------------  ------------
          Total stockholders' equity..................      69,152        69,051
                                                       ------------  ------------
          Total liabilities and
             stockholders' equity..................... $    78,740   $    77,513
                                                       ============  ============`





The accompanying notes are an
integral part of these condensed financial statements.



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MarketWatch.com, Inc.

Unaudited Condensed Statements of Operations

(in thousands, except per share data)



`Three Months Ended     Nine Months Ended
                                         September 30,         September 30,
                                     --------------------- ---------------------
                                         2002       2001       2002       2001
                                     ---------- ---------- ---------- ----------
Net revenues:
  Advertising...................... $    3,881 $    3,385 $   11,427 $   13,428
  Licensing........................      6,143      6,360     18,667     18,442
  Other............................        958        783      2,716      2,339
                                     ---------- ---------- ---------- ----------
       Total net revenues..........     10,982     10,528     32,810     34,209
Cost of revenues...................      4,306      4,527     12,394     14,111
                                     ---------- ---------- ---------- ----------
       Gross profit................      6,676      6,001     20,416     20,098
                                     ---------- ---------- ---------- ----------
Operating expenses:
  Product development..............      1,898      1,905      5,194      6,556
  General and administrative.......      2,685      2,787      8,584     10,070
  Sales and marketing..............      2,997      5,527     17,690     19,205
  Amortization of goodwill
    and intangibles................          -     12,801          -     38,402
  Restructuring charges............          -          -          -      1,409
                                     ---------- ---------- ---------- ----------
       Total operating expenses....      7,580     23,020     31,468     75,642
                                     ---------- ---------- ---------- ----------
Loss from operations...............       (904)   (17,019)   (11,052)   (55,544)
Interest income....................        180        329        545      1,345
Income (loss) in joint venture.....          -        645          -     (1,476)
                                     ---------- ---------- ---------- ----------
Net loss........................... $     (724)$  (16,045)$  (10,507)$  (55,675)
                                     ========== ========== ========== ==========
Basic and diluted net loss
   per share....................... $    (0.04)$    (0.96)$    (0.62)$    (3.35)
                                     ========== ========== ========== ==========
Shares used in the calculation of
  basic and diluted net loss
   per share.......................     17,028     16,678     16,925     16,620
                                     ========== ========== ========== ==========`



The accompanying notes are an integral part of these condensed
financial statements.

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MarketWatch.com, Inc.

Unaudited Condensed Statements of Cash Flows

(in thousands)



`Nine Months Ended
                                                             September 30,
                                                       ------------------------
                                                            2002         2001
                                                       -----------  -----------
Cash flows provided by (used in) operating activities:
Net Loss............................................. $   (10,507) $   (55,675)
  Adjustments to reconcile net loss to net cash
     provided by (used in) operating activities:
     Provision for bad debt..........................         201        1,010
     Depreciation and amortization...................       3,629       42,607
     Loss in joint venture...........................           -        1,476
     Noncash charges from stockholder................       9,555        4,040
     Changes in operating assets and liabilities:
       Accounts receivable...........................       1,345        3,060
       Prepaid expenses and other assets.............        (127)         919
       Accounts payable and accrued expenses.........         616       (1,707)
       Deferred revenue..............................         (48)          21
                                                       -----------  -----------
        Net cash provided by (used in) operating
          activities.................................       4,664       (4,249)
                                                       -----------  -----------
Cash flows used in investing activities:
  Purchase of property and equipment.................      (1,461)      (3,789)
  Purchase of Hulbert Financial Digest...............        (231)           -
  Investment in joint venture........................           -       (1,476)
                                                       -----------  -----------
        Net cash used in investing activities........      (1,692)      (5,265)
                                                       -----------  -----------
Cash flows provided by financing activities:
  Issuance of common stock...........................         453          482
                                                       -----------  -----------
        Net cash provided by financing activities....         453          482
                                                       -----------  -----------
Net change in cash...................................       3,425       (9,032)
Cash and cash equivalents at the beginning
   of the period.....................................      37,637       45,356
                                                       -----------  -----------
Cash and cash equivalents at the end of the period... $    41,062  $    36,324
                                                       ===========  ===========`

The accompanying notes are an integral part of
these condensed financial statements.



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MARKETWATCH.COM, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)



Note 1 - Organization and Nature of Business

Basis of Presentation

The interim financial data as of September 30, 2002 and for the three and
nine months ended September 30, 2002 and 2001 is unaudited; however, in the
opinion of MarketWatch.com, Inc. (the "Company"), the interim data
includes all adjustments, consisting only of normal recurring adjustments,
necessary for a fair statement of the results for the interim periods. The
results of operations for such periods are not necessarily indicative of the
results expected for a full year or for any future period. These financial
statements should be read in conjunction with the financial statements and
related notes included in the Company's Annual Report on Form 10-K for the year
ended December 31, 2001.

The Company

The Company, a leading multimedia source for financial news and
information, was formed on October 29, 1997 in the state of Delaware as a
limited liability company and was jointly owned by Data Broadcasting
Corporation, now known as Interactive Data Corporation ("IDC"), and CBS
Broadcasting Inc. ("CBS"), with each owning a 50% interest in the Company. In
January 1999, the Company converted into a corporation and completed an initial
public offering of 3,162,500 shares of common stock. In February 2000, IDC
completed a merger with the specialist asset valuation business, or the FTAM, of
the Financial Times Group, which is a part of Pearson plc. Upon the closing of
the merger, the Financial Times Group transferred the FTAM to IDC in exchange
for approximately 60% of the outstanding common stock of IDC. In January 2001,
an affiliate of Pearson plc acquired IDC's 34.1% stake in MarketWatch.com,
Inc.

Note 2 - Recent Accounting Pronouncements

On July 20, 2001, the Financial Accounting Standards Board
("FASB") issued Statement of Financial Accounting Standards No. 141
("SFAS No. 141"), "Business Combinations", and Statement of
Financial Accounting Standards No. 142 ("SFAS No. 142"),
"Goodwill and Other Intangible Assets". These statements made
significant changes to the accounting for business combinations, goodwill, and
intangible assets.

SFAS No. 141 established new standards for accounting and reporting
requirements for business combinations and requires that the purchase method of
accounting be used for all business combinations initiated after June 30, 2001.
SFAS No. 142 established new standards for the accounting treatment of goodwill
acquired in a business combination that eliminates the amortization of goodwill
and instead sets forth methods to periodically evaluate goodwill for impairment.
Intangible assets with a determinable useful life will continue to be amortized
over that period. The Company adopted the provisions of SFAS No. 142 on January
1, 2002. As a result, the Company has ceased amortization of $21.2 million in
goodwill.

On October 3, 2001, the FASB issued Statement of Financial Accounting
Standards No. 144 ("SFAS No. 144"), "Accounting for the Impairment or
Disposal of Long-Lived Assets". SFAS No. 144 supercedes Statement of Financial
Accounting Standards No. 121, "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to Be Disposed Of".  SFAS No. 144 applies
to all long-lived assets (including discontinued operations) and consequently
amends Accounting Principles Board Opinion No. 30, "Reporting Results of
Operations -- Reporting the Effects of Disposal of a Segment of a
Business". SFAS No. 144 develops one accounting model for long-lived assets
that are to be disposed of by sale. SFAS No. 144 requires that long-lived assets
that are to be disposed of by sale be measured at the lower of book value or
fair value less the cost to sell. The Company adopted the provisions of SFAS No.
144 on January 1, 2002 and the adoption did not have a material effect on its
results of operations or financial position.

On June 28, 2002, the FASB adopted Statement of Financial Accounting
Standards No. 146 ("SFAS 146"), "Accounting for Exit or Disposal
Activities", effective for exit or disposal activities that are initiated
after December 31, 2002, with early application encouraged.  SFAS 146 addresses
significant issues regarding the recognition, measurement, and reporting of
costs that are associated with exit and disposal activities, including
restructuring activities that are currently accounted for pursuant to the
guidance that the Emerging Issues Task Force ("EITF") has set forth in
EITF Issue No. 94-3, "Liability Recognition for Certain Employee
Termination Benefits and Other Costs to Exit an Activity (including Certain
Costs Incurred in a Restructuring)".

Note 3 - Net Loss Per Share

Basic net loss per share is computed using the weighted average number of
shares of common stock. Diluted net loss per share is computed using the
weighted average number of shares of common stock and common equivalent shares
outstanding during the period. Common equivalent shares consist of stock options
(using the treasury stock method). Common equivalent shares are excluded from
the computation if their effect is anti-dilutive.

Options to purchase 3,317,360 and 1,696,577 shares of common stock were
outstanding at September 30, 2002 and 2001, respectively, but were not included
in the computation of diluted net loss per share because either the options'
exercise price was greater than the average market price of the common shares
during the period or inclusion of such options would have been anti-
dilutive.

Note 4 - Related Party Transactions

Under its license agreement with CBS, the Company expensed $745,000 and
$658,000 for the three months ended September 30, 2002 and 2001, respectively,
and $1.9 million and $2.0 million for the nine months ended September 30, 2002
and 2001, respectively, related to licensing of CBS news content and trademarks.
In addition, the Company recorded advertising expenses of $242,000 and $1.4
million at rate card value for the three months ended September 30, 2002 and
2001, respectively, and $9.6 million and $4.1 million for the nine months ended
September 30, 2002 and 2001, respectively, for in-kind advertising and promotion
provided by CBS. Rental payments to CBS for leasing of certain facilities were
$286,000 and $271,000 for the three months ended September 30, 2002 and 2001,
respectively, and $832,000 and $806,000 for the nine months ended September 30,
2002 and 2001, respectively.

Licensing revenues from IDC were $300,000 and $306,000 for the three months
ended September 30, 2002 and 2001, respectively, and $900,000 and $1.1 million
for the nine months ended September 30, 2002 and 2001, respectively. License
revenues from the Financial Times Information, Ltd. were $420,000 and $285,000 for the three months ended
September 30, 2002 and 2001, respectively, and $1.4 million and $842,000 for the
nine months ended September 30, 2002 and 2001, respectively.  The Company
recognized costs to IDC of $135,000 and $137,000 for the three months ended
September 30, 2002 and 2001, respectively, and $427,000 and $513,000 for the
nine months ended September 30, 2002 and 2001, respectively, for data feeds. In
addition, the Company recognized revenues of $533,000 and $673,000 for the three
months ended September 30, 2002 and 2001, respectively, and $1.6 million and
$2.1 million for the nine months ended September 30, 2002 and 2001,
respectively, from television and radio programming on CBS stations.  The
Company recognized costs to CBS of $422,000 and $303,000 for the three months
ended September 30, 2002 and 2001, respectively, and $1.3 million and $1.1
million for the nine months ended September 30, 2002 and 2001, respectively, for
production of the television and radio programming.

IDC purchased $0 and $30,000 for the three months ended September 30, 2002
and 2001, respectively, and $33,000 and $93,000 for the nine months ended
September 30, 2002 and 2001, respectively, of advertising under an insertion
order.

At September 30, 2002 and 2001, $545,000 and $1.1 million, respectively, were
included in accounts receivable for radio and television revenue due from CBS.
In addition, $344,000 and $338,000, respectively, were included in the Company's
accounts receivable related to license and subscription revenues due from IDC
and $46,000 and $201,000,respectively, were included in the company's accounts
receivable related to license revenues due from Financial Times Information, Ltd..  At September 30, 2002 and
2001, the Company had a liability of $745,000 and $703,000, respectively, owed
to CBS for royalty fees and a liability of $65,000 and $214,000,respectively, to
IDC for data feeds.

Direct charges for subscription revenues for certain IDC data feeds were
$10,000 and $29,000 for the three months ended September 30, 2002 and 2001,
respectively, and $47,000 and $122,000 for the nine months ended September 30,
2002 and 2001, respectively. Under the terms of the Amended and Restated
Services Agreement, IDC agreed to provide the Company with certain general
services including accounting, network operations, hosting of the Company's Web
pages and data feeds. Allocated charges for these services totaled $0 for the
three months ended September 30, 2002 and 2001 and $0 and $106,000 for the nine
months ended September 30, 2002 and 2001, respectively.

An executive of the Company was also a member of the Board of Directors of a
customer. For the nine months ended September 30, 2001, $80,000 of advertising
revenues were attributable to this customer.

Note 5 - Restructuring Charges

In the second quarter of 2001, the Company implemented a plan to reduce
costs and improve operating efficiencies by discontinuing initiatives and
enhancements of our wireless and broadband businesses, and recorded a
restructuring charge of $1.4 million. The restructuring charge consisted
primarily of severance and benefits of $300,000 related to the involuntary
termination of approximately 35 employees; the estimated lease costs of $510,000
pertaining to future obligations for non-cancelable lease payments for excess
facilities; and the write-off of leasehold improvements, furniture and fixtures,
software and computer equipment with a net book value of $530,000. The assets
were taken out of service as they were deemed unnecessary due to the reductions
in workforce. In addition, the Company accrued for legal and consulting costs of
$70,000 related to the restructuring. As of September 30, 2002, the Company had
$162,000 remaining in our restructuring accrual for lease costs and other
expenses.  The remaining accrual will be paid in cash and the restructuring will
be complete by December 31, 2003.

Note 6 - Change in Accounting for Goodwill and Certain Other
Intangibles

In accordance with SFAS No. 142, goodwill amortization was discontinued
as of January 1, 2002.  The carrying amount of goodwill at September 30, 2002
totaled $22.4 million.  SFAS No. 142 prescribes a two-phase process for
impairment testing of goodwill. The first phase screens for impairment; while
the second phase (if necessary), measures the impairment. The Company completed
its first phase impairment analysis during the first quarter and found no
instances of impairment of its recorded goodwill; accordingly, the second
testing phase, absent future indicators of impairment, is not necessary during
2002.

In accordance with SFAS No. 142, the effect of this accounting change is
reflected prospectively. Unaudited supplemental comparative disclosure as if the
change had been retroactively applied to the prior year periods is as follows
(in thousands, except per share amounts):

`Three Months Ended     Nine Months Ended
                                             September 30,          September 30,
                                       ---------- ------------  --------- -----------
                                          2002         2001       2002        2001
                                       ----------   ----------  ---------   ---------
Reported net loss                    $      (724) $  ($16,045) $($10,507) $  (55,675)
Add back: Goodwill amortization                -      $12,708          -      38,124
Add back: Intangibles amortization             -           93          -         279
                                       ----------   ----------  ---------   ---------
  Adjusted net loss                  $      (724) $    (3,244) $ (10,507) $  (17,272)
                                       ----------   ----------  ---------   ---------
Basic and diluted net loss per share:

Reported net loss per share          $     (0.04) $     (0.96) $   (0.62) $    (3.35)
Goodwill amortization                          -         0.76          -        2.29
Intangibles amortization                       -         0.01          -        0.02
                                       ----------   ----------  ---------   ---------
  Adjusted net loss per share:       $     (0.04) $     (0.19) $   (0.62) $    (1.04)
                                       ==========   ==========  =========   =========`

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS

This report contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, including, without limitation, statements regarding our
expectations, beliefs, intentions or future strategies that are signified by the
words "expects", "anticipates", "intends", "believes", or similar language. All
forward-looking statements included in this document are based on information
available to us on the date hereof, and we assume no obligation to update any
such forward-looking statements. Actual results could differ materially from
those projected in the forward-looking statements. In evaluating our business,
prospective investors should carefully consider the information set forth below
under the caption "Factors That May Affect Our Operating Results" in addition to
the other information set forth herein. We caution investors that our business
and financial performance are subject to substantial risks and
uncertainties.

Overview

We completed our initial public offering in January 1999. Prior to
our initial public offering, we were a joint venture owned 50% each by Data
Broadcasting Corporation ("DBC"), now known as Interactive Data
Corporation ("IDC"), and CBS Broadcasting Inc. ("CBS"), and
were formed as a limited liability company in October 1997. We were formed as
the successor to DBC's Online/News Business, which commenced operations in
October 1995. Immediately prior to the closing of our initial public offering,
we were re-organized from a limited liability company into a corporation.

Since our formation, we have operated as a provider of business news,
financial programming and analytic tools, with services including news articles,
feature columns and analytic tools, such as stock quotes and charting. Most of
these services are available free of charge. We sell advertising banners and
sponsorships on our Web sites; license our content and tools to electronic
brokers, financial publishers and portals; generate revenue from advertising
through our television and radio programs; and sell subscriptions to certain IDC
products and to the Hulbert Financial Digest newsletter.

We have several agreements with CBS and IDC that include the following:

- Upon our formation into a corporation, CBS agreed to contribute $30.0
million in advertising valued at rate card through October 2002. The $30.0
million contribution was delivered in full by June 30, 2000;
- CBS licenses its trademark and certain news content to us for royalties
approximating 8% of all of our net revenues other than revenue attributable to
IDC and certain other revenue. The license agreement expires in October 2005;
- IDC provided us with part of our Web site infrastructure and certain
operational and administrative services at IDC's cost. IDC's service obligation
expires on October 29, 2005. In addition, IDC pays us a monthly, per subscriber
fee for delivery of our news to IDC subscribers, subject to a minimum payment of
$100,000 per month. This obligation expired in October 2002; and
- In May 2000, CBS contributed an additional $30.0 million in rate card
advertising and promotion to be delivered between March 1, 2000 and December 31,
2002. CBS has delivered $29.7 million of the additional $30.0 million in
advertising as of September 30, 2002.

In January 2000, we entered into a joint venture agreement with the Financial
Times Group, a part of Pearson plc, to establish Financial Times Marketwatch.com
(Europe) Limited, an Internet-based provider of real-time business news,
financial programming and analytical tools. In November 2001, we signed a sale
and purchase agreement with the Financial Times Group to transfer our ownership
of the joint venture to the Financial Times Group. As part of the ownership
transfer, we signed a transitional services agreement with the Financial Times
Group under which we would migrate the technology developed for the joint
venture Web site to the Financial Times Group for a fee. The agreement also
assigned certain equipment to us that was owned by the joint venture. In
addition, we signed a license agreement with the Financial Times Group under
which we provide certain content and tools for a monthly fee. Since we no longer
had a commitment to fund the joint venture, we reversed previously recorded
losses of $645,000 during the three months ended September 30, 2001.  Our
portion of the net loss in the joint venture for the nine months ended September
30, 2001 was $1.5 million.

In January 2001, an affiliate of Pearson, plc acquired a stake in
MarketWatch.com, Inc. and held 33% of our outstanding common stock as of
September 30, 2002.

Our ability to generate significant revenue or reach profitability in the
future is uncertain. Further, in view of the rapidly evolving nature of our
business and the volatile advertising market, we have little experience
forecasting our revenues. Therefore, we believe that period-to-period
comparisons of our financial results are not necessarily meaningful and you
should not rely upon them as an indication of our future performance. To date,
we have incurred substantial costs to create, introduce and enhance our
services, to develop content, to build brand awareness and to grow our business.
As a result, we have incurred operating losses in each fiscal quarter since we
were formed. We may continue to experience operating losses in the future. We
may also incur additional costs and expenses related to content creation,
technology, marketing or acquisitions of businesses and technologies to respond
to changes in our rapidly changing industry. These costs could have an adverse
effect on our future financial condition or operating results.

Results of Operations

Net Revenues

Net revenues are derived from the licensing of our content, sale of
advertising on our Web sites, distribution of television and radio broadcasts,
subscription sales of IDC and newsletter products, and the sale of news to IDC
and other customers.  Net revenues increased by 5% to $11.0 million for the
three months ended September 30, 2002 from $10.5 million for the three months
ended September 30, 2001 and decreased 4% to $32.8 million for the nine months
ended September 30, 2002 from $34.2 million for the nine months ended September
30, 2001. The increase for the three months ended September 30, 2002 was a
result of an increase in advertising and other revenue offset by a slight
decrease in licensing revenue.  The decrease for the nine months ended September
30, 2002 was a result of a decrease in advertising revenue offset by slight
increases in licensing and other revenue.  Advertising revenue declined on a
year to date basis due to a decrease in the number of advertisers on our Web
sites and smaller advertising buys from some existing customers. We believe that
spending by our customers on Web advertising has primarily decreased in response
to generally uncertain economic conditions. We cannot assure you that our
customers will continue to purchase advertising on our Web sites at historic
levels, if at all, or that we will obtain new customers.

Substantially all of our advertising customers purchase advertising under
short-term contracts. Customers can and have ceased advertising on short notice
without penalty. Advertising revenues would be adversely affected if we were
unable to renew advertising contracts with existing customers or obtain new
customers. We expect to continue to derive a significant amount of our future
net revenues from selling advertisements. The market for Web advertising is
intensely competitive and has experienced a significant softening in demand,
therefore advertising rates could be subject to additional pricing pressure in
the future. If we are forced to reduce our advertising rates or we experience
lower CPM's (cost per thousand page views) across our Web sites for any reason,
future advertising revenues could be adversely affected.

Licensing revenue depends on customer contract renewals and could decrease if
customers choose to renew for lesser amounts, terminate early or forego renewal,
or we do not obtain new customers. A significant amount of our licensing revenue
is earned from brokerages and financial service companies. In most instances,
the amount of licensing revenue depends on the number of qualified account
holders these customers have each month. If the number of qualified account
holders were to decrease, our licensing revenue would decrease. The growth of
our licensing revenue could also be limited as there are a limited number of
brokerages and financial service companies to license our content. In addition,
certain license contracts guarantee the performance of our Web sites. If our
sites do not perform as guaranteed, our licensing revenue would be adversely
affected.

Cost of Revenues

Cost of revenues primarily consists of costs related to production of
advertising and news, royalties payable to CBS and content providers, bandwidth
costs associated with serving pages on our Web properties, fees paid for data,
amortization of intangibles associated with our 1999 purchase of BigCharts.com,
Inc., Web site infrastructure costs, costs of serving ads, costs related to
license revenues including bandwidth and data fees, exchange fees and
communication lines and costs related to subscriptions including printing and
postage costs.

Cost of revenues decreased by 4% to $4.3 million for the three months ended
September 30, 2002 from $4.5 million for the three months ended September 30,
2001 and decreased by 12% to $12.4 million for the nine months ended September
30, 2002 from $14.1 million for the nine months ended September 30, 2001. Cost
of revenues decreased primarily due to a reduction in news production personnel,
a decrease in data source fees and a reduction in ad serving costs due to the
change from outside ad serving to the internal use of an ad serving software
solution.  As a percentage of net revenues, cost of revenues were 39% and 43%
for the three months ended September 30, 2002 and 2001, respectively, and 38%
and 41% for the nine months ended September 30, 2002 and 2001, respectively.

Product Development

Product development expenses primarily consist of data source fees,
compensation and benefits for Web site developers, designers and engineers to
maintain the sites and software engineers, and expenses for contract programmers
and developers.  Product development expenses remained consistent at $1.9
million for the three months ended September 30, 2002 and 2001 and decreased 21%
to $5.2 million for the nine months ended September 30, 2002 from $6.6 million
for the nine months ended September 30, 2001. Product development expenses
decreased for the nine-month period ended September 30, 2002 due primarily to a
reduction in personnel costs and data source fees as a result of renegotiated
vendor contracts.  Product development expenses were 17% and 18% of net revenues
for the three months ended September 30, 2002 and 2001, respectively, and 16%
and 19% of net revenues for the nine months ended September 30, 2002 and 2001,
respectively.

General and Administrative

General and administrative expenses primarily consist of compensation and
benefits for finance, business development and administrative personnel,
occupancy costs, professional fees, depreciation charges and charges for bad
debt. General and administrative expenses decreased by 4% to $2.7 million for
the three months ended September 30, 2002 from $2.8 million for the three months
ended September 30, 2001 and decreased 15% to $8.6 million for the nine months
ended September 30, 2002 from $10.1 million for the nine months ended September
30, 2001. General and administrative expenses decreased for the three and nine-
month periods ended September 30, 2002 due primarily to a reduction in
headcount, bad debt, travel and consulting expenses.  As a percentage of net
revenues, general and administrative costs were 24% and 26% for the three months
ended September 30, 2002 and 2001, respectively, and 26% and 29% for the nine
months ended September 30, 2002 and 2001, respectively.

Sales and Marketing

Sales and marketing expenses primarily consist of promotion and
advertising provided by CBS, online and offline advertisements, promotional
materials, compensation, benefits and sales commissions to our direct sales
force. Sales and marketing expenses decreased 45% to $3.0 million for the three
months ended September 30, 2002 from $5.5 million for the three months ended
September 30, 2001 and decreased 8% to $17.7 million for the nine months ended
September 30, 2002 from $19.2 million for the nine months ended September 30,
2001. Sales and marketing expenses decreased for the three-month period
primarily due to a decrease in cash advertising and compensation expense as well
as a decrease in CBS in-kind advertising expense.  Sales and marketing expenses
decreased for the nine-month period due to a decrease in cash advertising and
compensation expense offset by an increase in CBS in-kind advertising in the
first two quarters of 2002. As a significant portion of the CBS in-kind
advertising expired in June 2002, we utilized it to the fullest extent.  As a
percentage of net revenues, sales and marketing expenses were 27% and 52% for
the three months ended September 30, 2002 and 2001, respectively, and 54% and
56% for the nine months ended September 30, 2002 and 2001, respectively.

Amortization of Intangibles

Of the $157.5 million purchase price for BigCharts, $152.5 million
was allocated to goodwill, which was being amortized over 3 years, and $3.6
million was allocated to intangible assets, which was being amortized over
periods ranging from 1.5 to 3.5 years. On January 1, 2002, we adopted SFAS 142
and ceased amortization of our goodwill balance and instead periodically
evaluate goodwill for impairment.

2001 Restructuring Plan

In response to the continuing economic slowdown, we implemented a
plan in the second quarter of 2001 to reduce costs and improve operating
efficiencies by discontinuing initiatives and enhancement of our wireless and
broadband businesses. We recorded a restructuring charge of $1.4 million
consisting primarily of severance and benefits of $300,000 related to the
involuntary termination of approximately 35 employees; lease costs of $510,000
pertaining to the estimated future obligations for non-cancelable lease payments
for excess facilities in California, New York and Minnesota that were vacated
due to the reductions in workforce; write-off of leasehold improvements,
furniture and fixtures, software and computer equipment with a net book value
totaling $530,000; and legal and consulting costs of $70,000 related to the
restructuring. At September 30, 2002, we had $162,000 remaining in our
restructuring accrual.  The remaining accrual will be paid in cash and the
restructuring will be complete by December 31, 2003.

Interest Income

Interest income of $180,000 and $329,000 for the three months ended
September 30, 2002 and 2001, respectively, and $545,000 and $1.3 million for the
nine months ended September 30, 2002 and 2001, respectively, resulted from
interest earned on the proceeds from additional financing from CBS and DBC
received on May 5, 2000. Interest income for the three and nine months ended
September 30, 2002 decreased as a result of a decline in returns due to the
current market conditions.

Loss of Joint Venture

In November 2001, we signed a sale and purchase agreement with the
Financial Times Group to transfer our ownership of the joint venture, Financial
Times MarketWatch.com (Europe) Limited, to the Financial Times Group.  Prior to
the signing of the agreement, we recorded 50% of the loss incurred by
FTMarketWatch.com based on our ownership in the joint venture through August 31,
2001. Since we no longer had a commitment to fund the joint venture, we reversed
previously recorded losses of $645,000 during the three months ended September
30, 2001.  Our portion of the net loss was $1.5 million for the nine months
ended September 30, 2001.

Liquidity and Capital Resources

Since inception on October 29, 1997, we have funded our operations primarily
from cash contributed and advanced by IDC and CBS, revenues from advertising and
licensing sales and the proceeds from our initial public offering. Our cash,
cash equivalents and short-term investments totaled $41.1 million at September
30, 2002, compared to $37.6 million at December 31, 2001.

Cash provided by operating activities was $4.7 million for the nine months
ended September 30, 2002, primarily consisting of a net loss of $10.5 million,
offset by non-cash charges of $9.6 million in advertising provided by CBS and
$3.6 million in depreciation and amortization of property and equipment.  Cash
provided by operations for the nine months ended September 30, 2002 included a
decrease in accounts receivable and an increase in accounts payable and accrued
expenses, partially offset by an increase in prepaid and other assets and a
decrease in deferred revenue.

Cash used in operating activities was $4.2 million for the nine months ended
September 30, 2001, primarily from a net loss of $55.7 million, offset by non-
cash charges of $42.6 million in depreciation and amortization of goodwill,
intangibles and property and equipment, $4.0 million in non-cash advertising
provided by CBS, bad debt expense of $1.0 million and the loss in the joint
venture of $1.5 million. Significant cash provided by operations for the nine
months ended September 30, 2001 include a decrease in accounts receivable and
prepaid expenses partially offset by a decrease in accounts payable and accrued
expenses.

Cash used in investing activities was $1.7 million for the nine months ended
September 30, 2002 and consisted of capital expenditures for purchases of
computer software, computer hardware and leasehold improvements related to
leased facilities and the April 2002 purchase of Hulbert Financial Digest.

Cash used in investing activities was $5.3 million for the nine months ended
September 30, 2001 and consisted of capital expenditures and the investment in
our joint venture with the Financial Times Group. Capital expenditures generally
consisted of purchases of leasehold improvements related to leased facilities
and computer hardware.

Cash provided by financing activities was $453,000 for the nine months ended
September 30, 2002 and primarily reflected proceeds from the sale of common
stock through our employee stock purchase plan in February and August 2002.

Cash provided by financing activities was $482,000 for the nine months ended
September 30, 2001 and reflected primarily proceeds from the sale of common
stock through the employee stock purchase plan.

As of September 30, 2002, commitments under noncancellable operating leases
totaled $11.4 million through December 31, 2010. Additionally, we have entered
into certain agreements with America Online, Inc., or AOL, to make payments for
advertising and placement of our content on their service over the next two
years. As of September 30, 2002, we are committed to pay $1.7 million to AOL
over the next two years.

We believe our current cash position will be sufficient to meet our
anticipated needs for working capital and capital expenditures for at least the
next 12 months. We may need to raise funds sooner if we acquire any additional
businesses, products or technologies. If additional funds were raised through
the issuance of equity securities, the percentage ownership of our then-current
stockholders would be reduced. However, if CBS or Pearson elects to maintain its
percentage interest pursuant to the exercise of the purchase right under its
stockholders' agreements, then CBS or Pearson would not necessarily suffer a
reduction in its ownership. Furthermore, such equity securities may have rights,
preferences, or privileges senior to those of our common stock.

Factors that May Affect Our Operating Results

We May Experience Potential Fluctuations in Our Quarterly Operating
Results, and Face Unpredictability of Future Revenue, and Continue to Incur
Losses in the Future

Our quarterly operating results may fluctuate significantly in the future
as a result of a variety of factors, many of which are outside our control.
These factors include:

- Fluctuations in traffic levels on our Web sites, which can be significant as
a result of business, financial and other news events;
- Weakening demand for advertising on our Web sites as well as on the Web in
general;
- Reductions in rates paid for Web advertising resulting from softening
demand, competition or other factors;
- Changes in demand for licenses of our technology and news;
- The ability to develop new products and services;
- Our ability to enter into or renew on favorable terms our marketing and
distribution agreements;
- The amount and timing of our costs related to our marketing efforts or other
initiatives;
- The amount and timing of costs related to our new product development
efforts;
- Fees we may pay for distribution or content agreements or other costs we
incur;
- New services introduced by us or our competitors;
- The level of Web usage;
- Competitive factors;
- Costs associated with restructuring activity;
- Technical difficulties or system downtime affecting the Web generally or the
operation of our Web sites; or
- Economic conditions specific to the Web as well as general economic
conditions.

We have incurred operating losses in each fiscal quarter since we were
formed. We may continue to experience operating losses in the future. Although
we became operating cash flow positive for the first time in the fourth quarter
of 2001 and were cash flow positive for the nine months ended September 30,
2002, you should not rely on those results as an indication of future
performance. In particular, given the general economic uncertainty and the
softening of the advertising market, we may not remain cash flow positive in the
fourth quarter of 2002 or in any future periods.

Over time, our revenues have come from a mix of advertising, content
licensing, broadcasting and subscription service fees. Our revenue has declined
over the past year primarily due to decreased spending by companies on Web
advertising together with increasingly uncertain economic and market conditions.
We expect our quarterly revenues and operating results to be particularly
affected by the changes in the level of our advertising revenue in each quarter.
Our operating expenses are based on our expectations of our future revenues and
are relatively fixed in the short term. If we have lower revenues than we
expect, we may not be able to quickly reduce our spending in response. Any
shortfall in our revenues would have a direct impact on our operating results
for a particular quarter and these fluctuations could affect the market price of
our common stock in a manner unrelated to our long-term operating performance.

We believe that traffic levels on our Web sites typically fluctuate with the
occurrence of significant events in business, financial and other news, such as
fluctuations in the stock markets, which could cause changes in our audience
size.

We Depend on the Sale of Advertisements on Our Web Sites, and If Demand
for Web Advertising Continues to Soften, Our Business Would Be Harmed

We expect to derive a substantial amount of our revenues from advertising
for the foreseeable future. Over the last year, we and other Web publishers have
experienced a significant softening in demand for our advertising services due
to decreased spending on Web advertising by companies and due to general
uncertainty about the economy. We expect this reduced demand to continue for the
foreseeable future. This continued decline would substantially harm our business
and could result in a further decline in the trading price of our common stock.

Furthermore, we also must compete with traditional advertising media, such as
print, radio and television, for a share of advertisers' total advertising
budgets. We would lose revenue if the Web were not perceived as an effective
advertising medium. Also, advertisers that have traditionally relied upon other
advertising media may be reluctant to advertise on the Web especially given the
general uncertainty about the economy. Advertisers that already have invested
substantial resources in other advertising methods may be reluctant to adopt a
new advertising strategy and may find it more difficult to measure the
effectiveness of Web advertising. In addition, our advertising packages are sold
in campaigns ranging from less than two weeks to a year or more. Advertisers
generally have the right to cancel a campaign with two weeks notice without
penalty. Therefore, advertising revenues would be adversely affected if we fail
to offer a desirable opportunity for on-line advertising.

Moreover, a significant portion of our advertising revenue comes from
Internet commerce and financial services companies that have been adversely
affected by the recent market downturn. If we do not diversify our advertiser
base and continue to attract advertisers from other industries, our business
could be adversely affected.

Further, the existing brokerage and financial service companies and customers
in other markets that we target may merge which would further reduce the number
of our existing and potential customers.  As a result our advertising revenue
may be adversely affected.

We Rely Significantly on Revenue from Advertising, Which Is Difficult to
Forecast Accurately

Currently, a significant amount of our revenues come from advertisements
displayed on our Web sites. We derive the majority of our revenues from the sale
of advertisements under short-term contracts, which are difficult to forecast
accurately. In addition, our advertising packages are sold in campaigns ranging
from less than two weeks to a year or more. Advertisers generally have the right
to cancel a campaign with two weeks notice without penalty. In cases where the
advertiser is providing services, the agreements often have payments contingent
on usage levels. Some of our advertisers are Internet companies that, in certain
cases, may lack financial resources to fulfill their commitments. Accordingly,
it is difficult to accurately forecast these revenues. However, our expense
levels are based in part on expectations of future revenues and are fixed over
the short term with respect to certain categories. We may be unable to adjust
spending quickly enough to compensate for any unexpected revenue shortfall.
Accordingly, the cancellation or deferral of advertising agreements could have a
material adverse effect on our financial results.

No Standard Has Been Widely Accepted to Measure the Effectiveness of Web
Advertising and Changes in Current Pricing Models Could Seriously Harm Our
Operating Results

Different pricing models are used to sell advertising on the Web. It is
difficult to predict which, if any, will emerge as the industry standard. This
makes it difficult to project our future advertising rates and revenues. For
example, advertising rates based on the number of "click throughs," or user
requests for additional information made by clicking on the advertisement,
instead of rates based solely on the number of impressions, or times an
advertisement is displayed, could adversely affect our revenues because
impression-based advertising comprises a substantial majority of our current
advertising revenues. In addition, our advertising revenues could be adversely
affected if we are unable to adapt to new forms of Web advertising. Moreover,
"filter" software programs that limit or prevent advertising from being
delivered to a Web user's computer are available. Widespread adoption of this
software could adversely affect the commercial viability of Web advertising.

We Depend on License Revenues, and If License Revenues Were to Decline,
Our Business Would Be Harmed

We expect to derive a substantial amount of our revenues from licensing
of our content for the foreseeable future. Licensing revenue depends on new
customer contracts and customer contract renewals and could decrease if new
business is not found or customers choose to renew for lesser amounts, terminate
early or forego renewal. We derive a significant percentage of our licensing
revenue from a small number of large clients. Also, a significant amount of our
licensing revenue is earned from brokerages and financial service companies. The
amount of licensing revenue depends on the number of qualified account holders
these customers have each month. If the number of qualified account holders were
to decrease, our licensing revenue would decrease. The growth of our licensing
revenue could also be limited as there are a limited number of brokerages and
financial service companies. In addition, certain license contracts guarantee
the performance of our Web sites. If our sites do not perform as guaranteed, our
licensing revenue would be adversely affected.

Also, some of the licensing tools we have created and currently market to
existing and potential customers require users to disclose personally
identifiable information and would allow us to access to such confidential
information.  Due to concerns about user privacy issues, existing and potential
licensing customers may be deterred from licensing these tools, which could harm
our future licensing revenue.

In addition, we receive a portion of the data incorporated in our licensing
products from third parties.  Some of our third party data providers have
restrictions on access to and use of these data, which may make our licensing
products incorporating these data less attractive to our existing and potential
customers, which in turn may adversely affect our licensing revenue.

Further, the existing brokerage and financial service companies and customers
in other markets that we target may merge which would further reduce the number
of our existing and potential customers.  As a result, our licensing revenue may
be adversely affected.
Moreover, a substantial portion of our licensing revenue comes from Internet
commerce and financial services companies, which have been adversely affected by
the recent market downturn. If we do not diversify our client base and continue
to attract customers from other industries, our business could be adversely
affected.

Because We Depend on CBS and Pearson for a Number of Services and Other
Rights, Our Business Would Be Materially Adversely Affected if Either One of
Them Terminates Their Strategic Relationships With Us

Pursuant to our license agreement with CBS, we were granted the right to
use the CBS name and logo, as well as CBS Television Network news content in
connection with the CBS MarketWatch.com Web site. This license agreement will
expire on October 29, 2005 and CBS has no obligation to renew it. Also, under
specific circumstances, CBS may terminate the license agreement earlier. If we
are not able to renew our license agreement with CBS or CBS terminates the
license agreement earlier than October 29, 2005, we would need to change the
name of our Web site and devote substantial resources toward building a new
brand name. Regardless of such expenditures, we may not be able to continue to
attract a sufficient amount of user traffic and advertisers to our Web sites
without the CBS name and logo or promotion from CBS.

Moreover, we are subject to a number of restrictions in consideration for the
license grant and provision of news content from CBS. For example, CBS can
require us to remove any content on our Web sites that it determines conflicts,
interferes with or is detrimental to its reputation or business or which CBS
deems inappropriate. We are also required to conform to CBS's guidelines for the
use of its trademarks. CBS has the right to approve all materials, such as
marketing materials, that include any CBS trademarks. CBS also has control over
the visual and editorial presentation of its television news content on our Web
sites. Because of these restrictions, we may not be able to perform our desired
marketing activities. However, if we fail to comply with these restrictions, CBS
may terminate the license agreement.

Similarly, pursuant to the service agreement, Pearson provides us with real-
time financial data for dissemination to subscribers of certain of
MarketWatch.com subscription services. If Pearson suspends delivery of delayed
financial data or fails to provide such financial data satisfactorily, we would
be required to perform these services ourselves or obtain these services from
another provider. Replacing these services could cause us to incur additional
costs. We may not be able to replace these services on commercially reasonable
terms or, if we choose to perform these services ourselves, we may not be able
to perform them adequately. During any such transition, our services could be
disrupted for an indefinite period of time and, as a result, we could lose a
substantial number of users and advertisers.

The Interests of CBS and Pearson Could Conflict with the Interests of Our
Stockholders and, Given Their Substantial Stock Ownership in the Company, We May
Not Be Able to Resolve Any Future Conflict with Either of Them on Terms
Favorable to Us

CBS and Pearson may experience conflicts of interest in their business
dealings with us with respect to decisions involving business opportunities and
other similar matters. For example:

- CBS could license its name and logo to other Web sites or Internet services
that deliver general news, sports and entertainment. These sites or services
could also offer financial news, as long as delivering comprehensive stock
quotes and financial news to consumers in the English language is not their
primary function and their principal theme and format;
- Pearson may provide hosting services to other Web sites;
- Pearson could also establish an advertising-supported Web site that does not
have as its primary function and its principal theme and format the delivery of
financial news and stock quotes;
- CBS or Pearson could license their respective content to other Web sites or
Internet services; or
- CBS or Pearson could make certain investments in other Web sites or Internet
services.

The occurrence of any of the above actions could adversely affect our
business. For example, these sites or services supported by CBS or Pearson could
compete with us or CBS and Pearson might promote these other sites or services
more actively than they promote our Web sites.

We Depend on Our Strategic Relationships with Other Web Sites

We depend on establishing and maintaining distribution relationships with
high-traffic Web sites for a portion of our traffic. There is intense
competition for placements on these sites, and we may not be able to enter into
such relationships on commercially reasonable terms, if at all. Even if we enter
into distribution relationships with these Web sites, they themselves may not
attract a significant number of users. Therefore, our sites may not receive
additional users from these relationships. Moreover, we may have to pay
significant fees to establish these relationships and continue to pay
significant fees to maintain these types of relationships.

Occasionally, we enter into agreements with advertisers, content providers or
other high-traffic Web sites that require us to exclusively feature these
parties in certain sections of our Web sites. Existing and future exclusivity
arrangements may prevent us from entering into other content agreements,
advertising or sponsorship arrangements or other strategic relationships. Many
companies we may pursue for a strategic relationship also offer competing
services. As a result, these competitors may be reluctant to enter into
strategic relationships with us. Our business could be adversely affected if we
do not establish and maintain additional strategic relationships on commercially
reasonable terms or if any of our strategic relationships do not result in
increased use of our Web sites.

We Are in a Highly Competitive Industry and Some of Our Competitors May Be
More Successful in Attracting and Retaining Customers

The market for Web services and products is relatively new, intensely
competitive and rapidly changing.  The number of Web sites on the Internet
competing for consumers' attention and spending has proliferated and we expect
that competition will continue to intensify.  We compete, directly and
indirectly, for advertisers, viewers, members and content licensing clients with
the following categories of companies:

- publishers and distributors of traditional off-line media, such as
television, radio and print, including those targeted to business, finance and
investing needs, many of which have established or may establish Web sites, such
as The Wall Street Journal and CNN;
- general purpose consumer online services such as AOL and Microsoft Network,
each of which provides access to financial and business-related content and
services;
- Web sites targeted to business, finance and investing needs, such as
TheStreet.com and the Motley Fool;
- Web search and retrieval and other online services, such as Lycos, Yahoo!,
and other high-traffic Web sites, which offer quotes, financial news and other
programming and links to other business and finance-related Web sites;
- data companies that provide value-added tools, including charts, portfolios,
and stock screeners, such as Reuters and Thomson; and
- providers of standardized and customized investment research tools, such as
Pinnacor and SmartMoney.

We anticipate that the number of direct and indirect competitors will
increase in the future.  This could result in price reductions for our
advertising and licensing products, reduced margins, greater operating losses or
loss of market share, any of which would materially adversely affect our
business, results of operations and financial condition.  In addition, many of
our existing competitors, as well as a number of potential new competitors, have
longer operating histories in the Web market, greater name recognition, larger
customer bases, higher amounts of user traffic and significantly greater
financial, technical and marketing resources.  Such competitors may be able to
undertake more extensive marketing campaigns, adopt more aggressive pricing
policies, make more attractive offers to potential employees, distribution
partners, advertisers and content providers and may be able to respond more
quickly to new or emerging technologies and changes in Web user requirements.
Further, we cannot assure you that they will not develop services that are equal
or superior to ours or that achieve greater market acceptance than our
offerings.  Increased competition could also result in price reductions, reduced
margins or loss of market share, any of which could seriously harm our business,
results of operations and financial condition.

Our Intellectual Property Rights Are Costly and Difficult to Protect.  We
May be Subject to Intellectual Property Infringement Claims, Which Are Costly to
Defend and Could Limit Our Ability to Use Certain Technologies in the Future

We rely primarily on a combination of copyrights, trademarks, trade
secret laws, our user policy and restrictions on disclosure and use to protect
our intellectual property, such as our content, copyrights, trademarks, and
trade secrets.  We also enter into confidentiality agreements with our employees
and consultants, and seek to control access to and distribution of our other
proprietary information.  Despite these precautions, it may be possible for a
third-party to copy or otherwise obtain and use the content on our Web sites or
our other intellectual property without authorization.  However, these
precautions may not prevent misappropriation or infringement of our intellectual
property.  A failure to protect our intellectual property in a meaningful manner
could seriously harm our business, operating results and financial condition.
In addition, we may need to engage in litigation in order to enforce our
intellectual property rights in the future or to determine the validity and
scope of the proprietary rights of others.  Such litigation could result in
substantial costs and diversion of management and other resources, either of
which could have an adverse effect on our business, operating results and
financial condition.

We license the CBS logo, trademarks and certain news content from CBS
pursuant to the amended and restated license agreement.  This agreement could
terminate in certain circumstances and also involves a number of other
risks.

We also use certain licensed technology, data and content from third parties.
In these license agreements, the licensors have generally agreed to defend,
indemnify and hold us harmless with respect to any claim by a third-party that
the licensed software or content infringes any person's intellectual property
rights.  We cannot assure you that the outcome of any litigation between such
licensors and a third-party or between us and a third-party will not lead to
royalty obligations for which we are not indemnified or for which such
indemnification is insufficient, or that we will be able to obtain any
additional license on commercially reasonable terms, if at all.  In the future,
we may seek to license additional technology or content in order to enhance our
current features or to introduce new services.  However, any such licenses may
not be available on commercially reasonable terms, if at all.  The loss of or
inability to obtain or maintain any of these technology licenses could result in
delays in introduction of new services until equivalent technology, if
available, is identified, licensed and integrated, which could harm our
business, results of operations and financial condition.

Infringement or other claims may be asserted or prosecuted against us in the
future whether resulting from our internally developed intellectual property or
licenses or content from third parties.  Any future assertions or prosecutions
could materially adversely affect our business, results of operations and
financial condition.  Any such claims, with or without merit, could be time-
consuming, result in costly litigation and diversion of technical and management
personnel or require us to introduce new content or trademarks, develop non-
infringing technology or enter into royalty or licensing agreements.  Such
royalty or licensing agreements, if required, may not be available on acceptable
terms, if at all.  In the event of a successful claim of infringement and our
failure or inability to introduce new content or trademarks, develop non-
infringing technology or license the infringed or similar technology on a timely
basis, our business, results of operations and financial condition could be
materially adversely affected.

We Depend on Third-Party Software to Track and Measure the Delivery of
Advertisements and It Could Be Difficult to Replace These Services

It is important to our advertisers that we accurately measure the
demographics of our user base and the delivery of advertisements on our Web
sites. We depend on third-party software to provide these measurement services.
If the implementation of the software is unsuccessful or the third-party is
unable to provide these services in the future, we would be required to perform
them ourselves or obtain them from another provider. This could cause us to
incur additional costs or cause interruptions in our business during the time we
are replacing these services. We have implemented and are implementing
additional systems designed to record demographic data on our users. If we do
not develop these systems successfully, we may not be able to accurately
evaluate the demographic characteristics of our users. Companies may not
advertise on our Web sites or may pay less for advertising if they do not
perceive our measurements or measurements made by third parties to be reliable.

Our Business Will Be Adversely Affected If We Do Not Develop and Maintain
an Effective Sales Force

We depend on our sales force to sell advertising on our Web sites and
license our content. This involves a number of risks including:

- Our sales personnel have, in a number of cases, only worked for us for a
short period of time;
- Our ability to hire, retain, integrate and motivate sales and sales support
personnel;
- The length of time it takes new sales personnel to become productive; and
- The competition we face from other companies in hiring and retaining sales
personnel.

If we are unable to attract and retain an appropriate sales force, our
revenue may fail to increase or may decline.

If We Don't Expand Our Operations Successfully, Our Business Will be Harmed

We believe that we will need to expand our operations in order to support
our business. This expansion is likely to continue to place a significant strain
on our resources. As we grow, we may need to implement new operational systems,
procedures and controls. If we are unable to accomplish any of these, our growth
could be constrained and our business could be adversely affected.

We Must Develop New and Enhanced Services and Features for Our Web Sites

We believe that our Web sites will be more attractive to advertisers if
we develop a larger audience comprised of demographically favorable users.  For
example, we acquired Hulbert Financial Digest and have begun to offer Hulbert
newsletters through subscription.  Furthermore, we intend to introduce
additional or enhanced services in the future in order to retain our current
users and attract new users. If the Hulbert newsletters or other services we
introduce are not favorably received, our current users may not continue to
access our Web sites or use our services as frequently. New users could also
choose competitive Web sites or services over ours.

We may also experience difficulties that could delay or prevent us from
introducing new services. Furthermore, these services may contain errors that
are discovered after the services are introduced. We may need to significantly
modify the design of these services on our Web sites to correct these errors.
Our business could be adversely affected if we experience difficulties in
introducing new services or if users do not accept these new services.

We Depend on the Continued Growth in Use of the Web, Particularly for
Financial News and Information

Because we expect to depend significantly on advertising revenue for the
foreseeable future, our business depends on businesses and consumers continuing
to increase their use of the Web for obtaining news and financial information as
well as for conducting commercial transactions. Our advertising revenue and
therefore our business would be adversely affected if Web usage does not
continue to grow. Web usage may be inhibited for a number of reasons, such as:

- Inadequate network infrastructure;
- Security concerns;
- Inconsistent quality of service; and
- Availability of cost-effective, high-speed service.

However, if Web usage grows, the Internet infrastructure may not be
able to support the demands placed on it by this growth or its performance and
reliability may decline. In addition, Web sites have experienced interruptions
in their service as a result of outages and other delays occurring throughout
the Internet network infrastructure. If these outages or delays frequently occur
in the future, Web usage in general and usage of our Web sites in particular,
could grow more slowly or decline.

We Depend on Key Personnel Who May Not Continue to Work for Us

We believe that our future success will depend in part on our continued
ability to attract, integrate, retain and motivate highly qualified sales,
technical, editorial and managerial personnel, and upon the continued service of
our senior management and key sales and technical personnel. Although we have
employment agreements with some of our key executives, none of our personnel are
bound by an employment agreement that prevents such person from terminating his
or her employment with us at any time for any reason. At times we have
experienced difficulties in attracting new personnel. We may not successfully
attract, integrate, retain and motivate a sufficient number of qualified
personnel to conduct our business in the future.

We May Have Difficulty Scaling and Adapting Our Existing Architecture to
Accommodate Increased Traffic and Technology Advances

Our business relies on our ability to serve Web pages in a consistent and
timely manner. In the past, our Web sites have experienced significant increases
in traffic when there are significant business or financial news stories. In
addition, the number of our users has increased over time and we are seeking to
further increase our user base. If the traffic on our Web sites grows at a rate
that our current communication lines cannot support, our pages will be served at
a slower rate or we will be unable to serve pages at all. We also rely on
certain third-party providers for a significant amount of our current bandwidth
capacity. If these providers are unable to maintain their service level
agreements or we are unable to obtain additional bandwidth as our traffic grows,
our business would be adversely affected. Our Web sites have in the past and may
in the future experience slower response times and other problems for a variety
of reasons. Also, our Web sites have in the past and may in the future
experience down time and other problems due to server problems or capacity.

We also depend on multiple information providers, including but not limited
to FT Interactive Data, S&P Comstock and Dow Jones, to provide information
and data feeds on a timely basis. In addition, we receive data from Reuters and
Thomson Financial Corporation who are also competitors.  If they or others
perceive us as a competitor, they may discontinue providing services to us.  Our
Web sites could experience disruptions or interruptions in service due to the
failure or delay in the transmission or receipt of this information. In
addition, our users depend on Internet service providers, online service
providers and other Web site operators for access to our Web sites. Each of them
has experienced significant outages in the past, and could experience outages,
delays and other difficulties due to system failures unrelated to our systems.
These types of occurrences could cause users to perceive our Web sites as not
functioning properly and therefore cause them to use other methods to obtain
their business and financial news and other information.

Our market is characterized by rapidly changing technology, evolving industry
standards and frequent new product announcements, which are exacerbated by the
recent growth of the Web and the intense competition in our industry. We may
fail to successfully adapt to our rapidly changing market by continually
improving the performance, features and reliability of our services. We could
also incur substantial costs if we need to modify our services or infrastructure
in order to adapt to these changes. Our business could be adversely affected if
we incurred significant costs without adequate results or cannot adapt to these
changes.

Unauthorized Break-Ins and Other Disruptions to Our Site Could Harm Our
Business

Our servers are vulnerable to computer viruses, physical or electronic
break-ins and similar disruptions, which could lead to interruptions, delays or
loss of data. In addition, unauthorized persons may improperly access our data.
A number of popular Web sites have experienced attacks from "hackers" and other
intrusions. Any actions like these may harm us and may be very expensive to
remedy and could damage our reputation and discourage new and existing users
from using our site. We also provide indemnification to some of our licensing
customers for unauthorized access to and use of customer data as a result of
break-ins and other unauthorized access.  Our defense of any action brought
against us based upon improper access to confidential customer data or
indemnification of our licensing customers for similar claims brought against
them could be costly and involve significant distraction of our management and
other resources.  Also, our operations are dependent upon our ability to protect
systems against damage from fire, earthquakes, power loss, telecommunications
failure, and other events beyond our control. Our insurance policies have low
coverage limits and therefore our insurance may not adequately compensate us for
any losses that may occur due to any failures or interruptions in our systems.

Web Security Concerns Could Hinder Internet Commerce

The need to securely transmit confidential information over the Internet
has been a significant barrier to electronic commerce and communications over
the Web. Any well-publicized compromise of security could deter more people from
using the Web or from using it to conduct transactions that involve transmitting
confidential information, such as stock trades or purchases of goods or
services. Because many of our advertisers seek to advertise on our Web sites to
encourage people to use the Web to conduct financial transactions or purchase
goods or services, our business could be adversely affected.  We may also incur
significant costs to protect against the threat of security breaches or to
alleviate problems caused by such breaches.

We Could Face Liability Related to Our Storage of Personal Information
About Our Users

We have a non-disclosure policy displayed on our Web sites. Our policy is
not to willfully disclose any individually identifiable information about any
user to a third-party without the user's consent. This policy is accessible to
users of our personalized services when they initially register. Despite this
policy, however, if third persons were able to penetrate our network security or
otherwise misappropriate our users' personal information or credit card
information, we could be subject to liability. These could include claims for
unauthorized purchases with credit card information, impersonation or other
similar fraud claims. They could also include claims for other misuses of
personal information, such as for unauthorized marketing purposes. These claims
could result in litigation. In addition, the Federal Trade Commission and
certain states have been investigating certain Internet companies regarding
their use of personal information. We could incur additional expenses if new
regulations regarding the use of personal information are introduced or if
federal and state agencies chose to investigate our privacy practices.

We Could Face Liability for the Information Displayed on Our Web Sites

We may be subjected to claims for libel, slander, defamation, negligence,
copyright or trademark infringement or based on other theories relating to the
information we publish on our Web sites. These types of claims have been
brought, sometimes successfully, against online services as well as other print
publications in the past. We could also be subjected to claims based upon the
content that is accessible from our Web sites through links to other Web sites.
Moreover, because we license some data and content from third parties, our
exposure to various claims may increase. Although we generally obtain
representations as to the origins and ownership of licensed content from third
parties and generally obtain indemnification from these third parties to cover
any breach of any such representations, we do not generally receive
representations or indemnification to cover libel, slander, defamation, or
negligence relating to the third party content. Moreover, the representations we
do receive from third parties may be in error and the indemnification provided
by these parties may be insufficient to provide adequate compensation for any
breach of such representations. Also, our insurance may not adequately protect
us against these types of claims.   Moreover, our defense of any action brought
against us based upon the content that is accessible from our Web sites could be
costly and involve significant distraction of our management and other
resources.

Future Regulation of the Internet May Slow Its Growth, Resulting in
Decreased Demand for Our Products and Services and Increased Costs of Doing
Business

There are currently few laws or regulations that specifically regulate
communications or commerce on the Web. However, laws and regulations may be
adopted in the future that address issues such as user privacy, pricing, and the
characteristics and quality of products and services. For example, the
Telecommunications Act sought to prohibit transmitting certain types of
information and content over the Web. Several telecommunications companies have
petitioned the Federal Communications Commission to regulate Internet service
providers and online services providers in a manner similar to long distance
telephone carriers and to impose access fees on these companies. This could
increase the cost of transmitting data over the Internet. Moreover, it may take
years to determine the extent to which existing laws relating to issues such as
property ownership, libel and personal privacy are applicable to the Web. Any
new laws or regulations relating to the Web could adversely affect our business.

Terrorist Attacks and Threats or Actual War May Negatively Impact All
Aspects of Our Operations, Revenues, Costs and Stock Price

Recent terrorist attacks in the United States, as well as future events
occurring in response or connection to them, including future terrorist attacks
against United States targets, rumors or threats of war, actual conflicts
involving the United States or its allies or military disruptions may impact our
operations. For example, the disruption of the global financial markets due to
September 11th events, including the shutdown of Nasdaq and NYSE, impacted the
reporting of financial information on our Web sites. More generally, any of
these events could cause consumer confidence and spending, including spending on
the Web, to decrease, which may impact our advertising revenues. Also,
volatility in the United States and worldwide financial markets and economy has
contributed to volatility in the stock prices of United States publicly traded
companies. Further acts of terrorism and civil disturbances in the United States
or elsewhere could have a significant impact on our operating results, revenues
and costs.

We Are Involved in a Securities Class Action Litigation and Are At Risk of
Additional Similar Litigation

In the past, securities class action litigation has often been brought
against a company following periods of volatility in the market price of
securities. We are a party to the securities class action litigation described
in Item 1, "Legal Proceedings." The defense of the litigation described in Item
1 may increase our expenses and divert our management's attention and resources,
and an adverse outcome in this litigation could seriously harm our business and
results of operations. In addition, we may in the future be the target of other
securities class action or similar litigation.

We Face Risks Associated with Potential Acquisitions

We have made acquisitions in the past and may make acquisitions in the
future. Acquisitions of companies, products or technologies entail numerous
risks, including an inability to successfully assimilate acquired operations and
products, diversion of management's attention, loss of key employees of acquired
companies and substantial transaction costs. Some of the services acquired may
require significant additional development before they can be marketed and may
not generate revenue at anticipated levels. Moreover, future acquisitions by us
may result in dilutive issuances of equity securities, the incurrence of
additional debt, large one-time write-offs and the creation of goodwill or other
intangible assets that could result in significant amortization expense. Any of
these problems or factors could seriously harm our business, financial condition
and operating results.

Because Two of Our Large Stockholders Beneficially Own 66% of Our Stock,
They Have Substantial Control Over the Management of Our Company and Significant
Sales of Stock Held by Them Could Have a Negative Effect on Our Stock Price

CBS and Pearson beneficially owned 66% of our outstanding common stock as
of November 1, 2002. Each of CBS and Pearson has four representatives on our
board of directors. As a result of their ownership and board positions, CBS and
Pearson individually and collectively are able to significantly influence all
matters requiring stockholder approval, including the election of directors and
approval of significant corporate transactions. Such concentration of ownership
may also have the effect of delaying or preventing a change in control of our
company. In addition, sales of significant amounts of shares held by either of
CBS or Pearson or collectively, or the prospect of these sales, could adversely
affect the market price of our common stock.

Our Common Stock Price Is Volatile and Could Fluctuate Significantly

The trading price of our stock has been and may continue to be subject to
wide fluctuations. During the last 52 week period ended September 30, 2002, the
closing sale prices of our common stock on the NASDAQ National Market ranged
from $1.60 to $5.09. On November 1, 2002, the closing sale price was $4.64.  Our
stock price may fluctuate in response to a number of events and factors, such as
quarterly variations in operating results, announcements of technological
innovations or new products and media properties by us or our competitors,
changes in financial estimates and recommendations by securities analysts, the
operating and stock price performance of other companies that investors may deem
comparable, news reports relating to trends in our markets and general economic
conditions. In addition, the stock market in general, and the market prices for
Internet-related companies in particular, have experienced extreme volatility.
These broad market and industry fluctuations may adversely affect the price of
our common stock, regardless of our operating performance.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK

Interest rate sensitivity. The primary objective of our investment
activities is to preserve principal while maximizing the income we receive from
our investments without significantly increasing risk. Some of the securities
that we have invested in may be subject to market risk. This means that a change
in prevailing interest rates may cause the principal amount of the investment to
fluctuate. For example, if we hold a security that was issued with a fixed
interest rate at the then-prevailing rate and the prevailing interest rate later
rises, the principal amount of our investment will probably decline. To minimize
this risk, we maintain our portfolio of cash in money market funds and cash
equivalents.  In general, money market funds and short-term investments are not
subject to market risk because the interest paid on such funds fluctuates with
the prevailing interest rate. As of September 30, 2002, all of our investments
mature in 90 days or less.

Exchange Rate Sensitivity.We consider our exposure to foreign
currency exchange rate fluctuations to be minimal, as we do not have any sales
denominated in foreign currencies. We have not engaged in any hedging
transactions to date.

ITEM 4. CONTROLS AND PROCEDURES

Within the 90-days prior to the filing of this quarterly report,
we carried out an evaluation, under the supervision and with the participation
of our Chief Executive Officer and Chief Financial Officer of the effectiveness
of the design and operation of our disclosure controls and procedures.  Based on
this evaluation, our Chief Executive Officer and Chief Financial Officer
concluded that our disclosure controls and procedures are effective in timely
alerting them to material information required to be included in this quarterly
report.

There have been no significant changes in our internal controls or in other
factors which could significantly affect internal controls subsequent to our
most recent evaluation of our internal controls.

PART II -- OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On and after April 17, 2001, five punitive shareholder class action lawsuits
were filed against us, certain of our current and former officers and directors
(the "Individual Defendants"), and a number of investment banks,
including some of the underwriters of our initial public offering. The lawsuits
were filed in the Southern District of New York.  The complaints have been
consolidated into a single action and a consolidated amended complaint has been
filed.  The lawsuit purports to be a class action filed on behalf of purchasers
of our stock during the period January 15, 1999 through December 6, 2000.
Plaintiffs allege that the underwriter defendants agreed to allocate stock in
the initial public offering to certain investors in exchange for excessive and
undisclosed commissions and agreements by those investors to make additional
purchases of stock in the aftermarket at pre-determined prices. Plaintiffs
allege that the registration statement and prospectus for our initial public
offering was false and misleading in violation of the securities laws because it
did not disclose these arrangements. We and our current and former officers and
directors vigorously deny all allegations of wrongdoing and intend to vigorously
defend the actions.  The action seeks damages in an unspecified amount.  The
action against us is being coordinated with approximately three hundred other
nearly identical actions filed against other companies. On July 15, 2002, the
Company moved to dismiss all claims against it and the Individual Defendants.
The Court has not ruled on this motion.  On October 9, 2002, the Court dismissed
the Individual Defendants from the case without prejudice based upon
Stipulations of Dismissal filed by the plaintiffs and the Individual Defendants.
Due to the inherent uncertainties of litigation, we cannot accurately predict
the ultimate outcome of the litigation. Any unfavorable outcome of this
litigation could have an adverse impact on our business, financial condition,
and results of operations.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

1. Index to Exhibits
2. Reports on Form 8-K

No reports on Form 8-K were filed during the quarter ended September 30,
2002.



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MarketWatch.com, Inc.

SIGNATURES

In accordance with the requirements of the Securities Exchange Act,
the Registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

| |                      
| | ---------------------
| | MarketWatch.com, Inc.
| | (Registrant)         



Dated: November 14, 2002

| |                                              |                  
| | -------------------------------------------- | -----------------
| | By:                                          | /s/ JOAN P. PLATT
| |                                             
| | Joan P. Platt                               
| | Chief Financial Officer                     
| | (Principal Financial and Accounting Officer)

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CERTIFICATION

I, Lawrence S. Kramer, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of MarketWatch.com,
Inc.;

2.	Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterlyreport;

3.	Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.	The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) 	designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

b) 	evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) 	presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

5.	The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

a) 	all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

b) 	any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls;
and

6. 	The registrant's other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  November 14, 2002

/S/ LAWRENCE S. KRAMER

Lawrence S. Kramer

Chief Executive Officer



****

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CERTIFICATION

I, Joan P. Platt, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of MarketWatch.com,
Inc.;

2.	Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterlyreport;

3.	Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.	The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) 	designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

b) 	evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) 	presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

5.	The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

a) 	all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

b) 	any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls;
and

6. 	The registrant's other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  November 14, 2002

/S/ JOAN P. PLATT

Joan P. Platt

Chief Financial Officer

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INDEX TO EXHIBITS

|Exhibit Number | Exhibit Title                                                                                      
|-------------- | ---------------------------------------------------------------------------------------------------
|10.13          | Employment Agreement effective as of  July 1, 2001, between the
Registrant and Lawrence Kramer.    
|10.14          | Employment Agreement effective as of December 1, 2001, between
the Registrant and Kathy Yates.     
|10.15          | Employment Agreement effective as of January 1, 2002, between
the Registrant and Scot McLernon.    
|10.16          | Employment Agreement effective as of January 1, 2002, between
the Registrant and David Callaway.   
|10.17          | Employment Agreement effective as of January 1, 2002, between
the Registrant and Jamie Thingelstad.

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