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~~PAGE~~UNITED ~~--------~~STATES SECURITIES ~~PART~~AND IEXCHANGE Item 1. Business.................................................... 2 Item 2. Properties.................................................. 13 Item 3. Legal Proceedings........................................... 13 Item 4. Submission of Matters to a Vote of Security Holders......... 13 PART II Item 5. Market for Our Common Stock and Related Stockholder Matters................................................... 13 Item 6. Selected Consolidated Financial Data........................ 15 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations................................. 16 Item 7A. Quantitative and Qualitative Disclosures About Market Risk...................................................... 37 Item 8. Financial Statements and Supplementary Data................. 37 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.................................. 37 PART III Item 10. Directors and Executive Officers of the Registrant.......... 37 Item 11. Executive Compensation...................................... 37 Item 12. Security Ownership of Certain Beneficial Owners and Management................................................ 37 Item 13. Certain Relationships and Related Transactions.............. 38 PART IV Item 14. ExhibitsCOMMISSION Washington, ~~Financial Statement Schedules, and Reports on Form 8-K~~D.C.~~.....................................................~~ ~~38 SIGNATURES.............................................................. 41~~20549

~~HIGH~~ ~~LOW~~ FORM 10-------- -------- Fiscal Year Ended June 30, 2000 First Quarter (from September 24, 1999)................. $29.125 $25.313 Second Quarter.......................................... $33.938 $19.000 Third Quarter........................................... $35.563 $15.000 Fourth Quarter.......................................... $16.063 $ 5.219K

~~PERIOD~~ FOR ~~FROM~~ANNUAL ~~YEAR~~AND ~~ENDED~~TRANSITION ~~JUNE~~REPORTS ~~30,~~PURSUANT ~~JULY 21, 1997 ------------------------ (INCEPTION) 2000 1999~~ TO ~~JUNE~~SECTIONS ~~30,~~13 ~~1998~~OR ~~----------- ---------- -----------------~~ 15(~~IN THOUSANDS~~d) ~~STATEMENT~~ OF ~~OPERATIONS~~THE ~~DATA:~~SECURITIES ~~Net~~EXCHANGE ~~revenues..........................................~~ACT $OF 55,506 $ 4,634 $ -- Cost of revenues...................................... 63,515 12,426 -- ----------- ---------- ---------- Gross loss............................................ (8,009) (7,792) -- Operating expenses: Sales and marketing................................. 49,376 1,651 -- Product development................................. 9,721 1,018 -- General and administrative.......................... 19,122 3,718 25 Stock-based charges................................. 6,346 1,236 -- Amortization of intangible assets................... 5,525 -- -- ----------- ---------- ---------- Total operating expenses.............................. 90,090 7,623 25 ----------- ---------- ---------- Loss from operations.................................. (98,099) (15,415) (25) ----------- ---------- ---------- Interest and other income, net........................ 6,813 115 -- ----------- ---------- ---------- Net loss.............................................. $ (91,286) $ (15,300) $ (25) =========== ========== ========== Basic and diluted net loss per share.................. $ (1.23) $ (1.42) $ -- ----------- ---------- ---------- Weighted average number of shares used to calculated to calculate basic and diluted net loss per share... 74,123,000 10,792,000 15,000,000 =========== ========== ==========1934

~~JUNE 30, ------------------------------ 2000 1999 1998 -------- -------- --------~~ (INMark ~~THOUSANDS~~One) BALANCE SHEET DATA: Cash, cash equivalents and short-term investments........... $237,865 $24,035 $ 1 Working capital............................................. 234,590 16,097 (23) Total assets................................................ 325,958 47,501 1 Capital leases and notes payable, less current portion...... 10,278 3,527 -- Redeemable convertible preferred stock...................... -- 2,140 -- Stockholders' equity (deficit).............................. 285,734 30,954 (23)

~~PERIOD~~/x/ ~~ENDED~~ANNUAL ~~JUNE~~REPORT ~~30,~~PURSUANT ~~------------------------------------~~TO ~~2000~~SECTION ~~1999~~13 ~~1998~~OR -------- -------- -------- Net revenues................................................ 100% 100% -- Cost of revenues............................................ 114 268 -- ---- ---- --- Gross loss.................................................. 15(14d) ~~(168)~~OF --THE ~~Operating~~SECURITIES ~~expenses:~~EXCHANGE ~~Sales~~ACT ~~and~~OF marketing....................................... 89 36 -- Product development....................................... 18 22 -- General and administrative................................ 34 80 -- Stock-based charges....................................... 11 27 -- Amortization of intangible assets......................... 10 -- -- ---- ---- --- Total operating expenses.................................... 162 165 -- ---- ---- --- Loss from operations........................................ (176) (333) -- Interest and other income, net.............................. 12 3 -- ---- ---- --- Net loss.................................................... (164)% (330)% -- ==== ==== ===1934

~~PAGE~~For ~~--------~~the ~~Schedule~~fiscal ~~II--Valuation~~year onended ~~Qualifying~~June ~~Accounts.......~~30, ~~F-22~~2001

3.1** Certificate of Incorporation of the Registrant. 3.2** Bylaws of the Registrant. 4.1** Specimen common stock certificate. 10.1+ Amendment to the Amended and Restated Start Page Agreement dated as of July 1, 2000 by and between the Registrant and LookSmart, Ltd. 10.2***++ Amended and Restated Start Page Agreement dated as of February 1, 2000 by and between the Registrant and LookSmart, Ltd. 10.3*** The ZeroPort Advertising Agreement dated as of February 5, 2000 by and between the Registrant and idealab! Inc. 10.4*** Employment Agreement dated as of December 1, 1999, by and between the Registrant and Brian Woods. 10.5**++ Adserver License Agreement dated as of August 28, 1998, between the Registrant and NetGravity, as amended. 10.6** Technology Assignment Agreement dated as of September 11, 1998, by and between the Registrant and Impact Software, Inc. 10.7** Form of Stock Restriction Agreement between the Registrant and the founders. 10.8**++ Quotation for Dialinx Services dated December 9, 1998, between the Registrant and GTE Internetworking Incorporated, as amended. 10.9** Master Agreement dated as of October 13, 1998, by and between the Registrant and GTE Internetworking Incorporated. 10.10** Standard Office Lease dated as of March 6, 1999, as amended on March 7, 1999, by and between the Registrant and Westlake Gardens. 10.11** Addendum to Stock Option Agreements.OR

10.12** Employment Agreement dated as of March 20, 1999, by and between the Registrant and Frederic A. Randall, Jr. 10.13** Employment Agreement dated as of March 20, 1999, between the Registrant and Mark R. Goldston. 10.14** Stock Pledge Agreement dated as of March 20, 1999 between the Registrant and Mark R. Goldston, as amended. 10.15** Note secured by Stock Pledge Agreement dated March 20, 1999, made by Mark R. Goldston in favor of the Registrant, as amended. 10.16**++ Software License and Service Agreement dated as of April 14, 1999, between the Registrant and Oracle Corporation. 10.17** Employment Agreement dated as of April 17, 1999, by and between the Registrant and Charles S. Hilliard. 10.18** Stock Pledge Agreement dated April 17, 1999, between the Registrant and Charles S. Hilliard. 10.19** Note secured by Stock Pledge Agreement dated April 17, 1999 made by Charles S. Hilliard in favor of the Registrant. 10.20** Amended and Restated Investors' Rights Agreement dated as of May 10, 1999, by and among the Registrant and the investors, officers and founders listed on schedules thereto. 10.21** 1998 Stock Option/~~Stock~~ ~~Issuance Plan. 10.22** 1999 Stock Option~~/~~Stock~~ ~~Issuance~~TRANSITION ~~Plan.~~REPORT 10.23**PURSUANT ~~Form~~TO ofSECTION ~~Indemnification~~13 ~~Agreement~~OR between the Registrant and its directors. 10.24** 1999 Stock Incentive Plan. 10.25** Employee Stock Purchase Plan. 10.26** Form of Indemnification Agreement between the Registrant and its executive officers. 11.1 Statement re computation of earnings per share 15(~~included in Note 11 to the consolidated financial statements filed as part of this Annual Report on Form 10-K~~d). ~~23.1~~OF ~~Consent~~THE ofSECURITIES ~~PricewaterhouseCoopers~~EXCHANGE ~~LLP,~~ACT ~~independent~~OF ~~accountants. 27.1 Financial Data Schedule.~~1934

~~SIGNATURE~~For ~~TITLE~~the ~~DATE~~transition ~~---------~~period ----- ---- /s/ MARK R. GOLDSTON ------------------------------------------- Chairman, Chief Executive September 28, 2000 Mark R. Goldston Officer and Director /s/ RONALD T. BURR ------------------------------------------- President, Chief Technology September 28, 2000 Ronald T. Burr Officer and Director /s/ CHARLES S. HILLIARD Senior Vice President, ------------------------------------------- Finance and Chief Financial September 28, 2000 Charles S. Hilliard Officer /s/ JAMES T. ARMSTRONG ------------------------------------------- Director September 28, 2000 James T. Armstrong /s/ DAVID C. BOHNETT ------------------------------------------- Director September 28, 2000 David C. Bohnett /s/ JENNIFER S. FONSTAD ------------------------------------------- Director September 28, 2000 Jennifer S. Fonstad /s/ BILL GROSS ------------------------------------------- Director September 28, 2000 Bill Gross ------------------------------------------- Director Paul G. Koontzfrom to

~~PAGE~~ ~~--------~~Commission ~~Report~~file ofnumber ~~Independent Accountants........................... F~~000-2 Consolidated Balance Sheets................................. F-3 Consolidated Statements of Operations....................... F-4 Consolidated Statements of Stockholders' Equity (Deficit)... F-5 Consolidated Statements of Cash Flow........................ F-6 Notes to Consolidated Financial Statements.................. F-7 Report of Independent Accountants on Financial Statement Schedule.................................................. F-21 Schedule II--Valuation and Qualifying Accounts.............. F-2227405

~~JUNE 30~~NETZERO, ~~---------------------------- 2000 1999 ------------- ------------ ASSETS Current assets: Cash and cash equivalents~~INC................................. $ 201,512,000 $ 24,035,000 Short-term investments.................................... 36,353,000 -- Restricted cash........................................... 6,982,000 -- Accounts receivable, net of allowance for doubtful accounts of $1,651,000 at June 30, 2000 and $160,000 at June 30, 1999........................................... 15,748,000 2,253,000 Other current assets...................................... 3,941,000 689,000 ------------- ------------ Total current assets.................................... 264,536,000 26,977,000 Property and equipment, net................................. 37,662,000 18,116,000 Restricted cash............................................. 2,692,000 1,789,000 Intangible assets, net...................................... 19,523,000 -- Other assets................................................ 1,545,000 619,000 ------------- ------------ Total assets............................................ $ 325,958,000 $ 47,501,000 ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable.......................................... $ 18,727,000 $ 4,879,000 Accrued liabilities....................................... 2,506,000 1,521,000 Deferred revenue.......................................... 825,000 2,739,000 Current portion of notes payable.......................... 1,641,000 560,000 Current portion of capital leases......................... 6,247,000 1,181,000 ------------- ------------ Total current liabilities................................. 29,946,000 10,880,000 Notes payable less current portion.......................... 2,143,000 1,210,000 Capital leases less current portion......................... 8,135,000 2,317,000 ------------- ------------ Total liabilities......................................... 40,224,000 14,407,000 ------------- ------------ Commitments and contingencies (~~Note~~Exact ~~15)~~Name ~~Redeemable convertible preferred stock, no-par value; 19,231,000 shares authorized; 19,230,000 issued and outstanding at June 30, 1999; liquidation preference and redemption value~~ of ~~$2,140,000;~~Registrant noas ~~shares~~Specified issued or outstanding at June 30, 2000.............................. -- 2,140,000 Stockholders' equity Convertible preferred stock, $0.001 par value; 55,769,000 shares authorized; 45,182,000 shares isued and outstanding at June 30, 1999; liquidation preference of $44,917,000; 10,000,000 shares authorized and no shares issued and outstanding at June 30, 2000................. -- 44,720,000 Common stock, $0.001 par value; 500,000,000 and 150,000,000 shares authorized at June 30, 2000 and 1999, respectively; 116,712,000 and 28,624,000 shares issued and outstanding at June 30, 2000 and 1999, respectively............................................ 118,000 1,352,000 Additional paid-in ~~capital................................~~Its ~~405,847,000 9,019,000 Notes receivable from stockholders........................ (799,000~~Charter) (1,029,000) Deferred stock-based charges.............................. (12,821,000) (7,783,000) Accumulated deficit....................................... (106,611,000) (15,325,000) ------------- ------------ Total stockholders' equity.............................. 285,734,000 30,954,000 ------------- ------------ Total liabilities and stockholders' equity.............. $ 325,958,000 $ 47,501,000 ============= ============

YEAR ENDED JULY 21, 1997 JUNE 30, (INCEPTION) --------------------------- THROUGH 2000 1999 JUNE 30, 1998 ------------ ------------ ------------- Net revenues......................................... $ 55,506,000 $ 4,634,000 -- Cost of revenues (excluding stock-based charges of $357,000 and $60,000 for the years ended June 30, 2000 and 1999, respectively)....................... 63,515,000 12,426,000 -- ------------ ------------ ----------- Gross loss........................................... (8,009,000) (7,792,000) -- ------------ ------------ ----------- Operating expenses: Sales and marketing (excluding stock-based charges of $2,060,000 and $38,000 for the years ended June 30, 2000 and 1999, respectively)............ 49,376,000 1,651,000 -- Product development (excluding stock-based charges of $299,000 for the year ended June 30, 2000).... 9,721,000 1,018,000 -- General and administrative (excluding stock-based charges of $3,630,000 and $1,138,000 for the years ended June 30, 2000 and 1999, respectively).................................... 19,122,000 3,718,000 25,000 Stock-based charges................................ 6,346,000 1,236,000 -- Amortization of intangible assets.................. 5,525,000 -- -- ------------ ------------ ----------- Total operating expenses......................... 90,090,000 7,623,000 25,000 ------------ ------------ ----------- Loss from operations................................. (98,099,000) (15,415,000) (25,000) ------------ ------------ ----------- Interest income...................................... 8,342,000 225,000 -- Interest expense..................................... (1,529,000) (110,000) -- ------------ ------------ ----------- Net loss............................................. $(91,286,000) $(15,300,000) $ (25,000) ============ ============ =========== Basic and diluted net loss per share................. $ (1.23) $ (1.42) $ -- ------------ ------------ ----------- Weighted average number of shares used to calculate basic and diluted net loss per share............... 74,123,000 10,792,000 15,000,000 ============ ============ ===========

Delaware (State or Other Jurisdiction of Incorporation or Organization)		95-4644384 (I.R.S. Employer Identification No.)
2555 Townsgate Road, Westlake Village, California (Address of Principal Executive Offices)		91361 (Zip Code)

CONVERTIBLE PREFERRED STOCK COMMON STOCK ADDITIONAL NOTES RECEIVABLE ------------------------- ------------------------- PAID-IN FROM SHARES AMOUNT SHARES AMOUNT CAPITAL STOCKHOLDERS ----------- ----------- ----------- ----------- ------------ ---------------- Balance at July 21, 1997 (inception)..................... -- $ -- -- $ -- $ -- $ -- Issuance of common stock.......... -- -- 15,000,000 2,000 -- -- Net loss.......................... -- -- -- -- -- -- ----------- ----------- ----------- ----------- ------------ ---------- Balance at June 30, 1998.......... -- -- 15,000,000 2,000 -- -- Issuance of common stock.......... -- -- 23,000 2,000 -- -- Issuance of Series C convertible preferred stock, net............ 27,077,000 11,512,000 -- -- -- -- Exercise of warrants for Series C convertible preferred stock..... 23,000 10,000 -- -- -- -- Exercise of stock options......... -- -- 6,115,000 319,000 -- -- Exercise of options for a note receivable...................... -- -- 7,486,000 1,029,000 -- (1,029,000) Deferred stock-based charges...... -- -- -- -- 8,952,000 -- Amortization of deferred stock-based compensation........ -- -- -- -- -- -- Charge for issuance of Series A and B options................... -- -- -- -- 67,000 -- Issuance of Series D convertible preferred stock................. 18,082,000 33,198,000 -- -- -- -- Net loss.......................... -- -- -- -- -- -- ----------- ----------- ----------- ----------- ------------ ---------- Balance at June 30, 1999.......... 45,182,000 44,720,000 28,624,000 1,352,000 9,019,000 (1,029,000) Conversion of convertible preferred stock................. (45,182,000) (44,720,000) 45,182,000 44,720,000 -- -- Conversion of redeemable convertible preferred stock..... -- -- 19,230,000 2,140,000 -- -- Reincorporation into Delaware and change in par value of common stock........................... -- -- -- (48,119,000) 48,119,000 -- Issuance of common stock from initial public offering......... -- -- 11,500,000 12,000 169,339,000 -- Issuance of common stock in private placement............... -- -- 11,540,000 12,000 143,934,000 -- Issuance of common stock through employee stock purchase plan.... -- -- 49,000 -- 504,000 -- Exercise of stock options......... -- -- 674,000 1,000 322,000 (7,000) Repurchase of option shares exercised....................... -- -- (1,012,000) (1,000) (22,000) -- Issuance of common stock for acquisition..................... -- -- 925,000 1,000 23,248,000 -- Issuance of warrant for marketing services........................ -- -- -- -- 8,600,000 -- Deferred stock-based charges...... -- -- -- -- 2,784,000 -- Amortization of deferred stock-based compensation........ -- -- -- -- -- -- Payment received on notes receivable from stockholders.... -- -- -- -- -- 300,000 Interest earned on notes receivable from stockholders.... -- -- -- -- -- (63,000) Net loss.......................... -- -- -- -- -- -- ----------- ----------- ----------- ----------- ------------ ---------- Balance at June 30, 2000.......... -- $ -- 116,712,000 $ 118,000 $405,847,000 $ (799,000) =========== =========== =========== =========== ============ ========== DEFERRED TOTAL STOCK-BASED ACCUMULATED STOCKHOLDERSRegistrant's ~~CHARGES~~Telephone ~~DEFICIT EQUITY (DEFICIT) ------------- ------------- ---------------- Balance at July 21~~Number, ~~1997~~Including ~~(inception).....................~~Area $Code: ~~-- $ -- -- Issuance of common stock.......... -- -- 2,000 Net loss.......................... --~~ (~~25,000~~805) ~~(25,000)~~ 418------------ ------------- ------------ Balance at June 30, 1998.......... -- (25,000) (23,000) Issuance of common stock.......... -- -- 2,000 Issuance of Series C convertible preferred stock, net............ -- -- 11,512,000 Exercise of warrants for Series C convertible preferred stock..... -- -- 10,000 Exercise of stock options......... -- -- 319,000 Exercise of options for a note receivable...................... -- -- -- Deferred stock-based charges...... (8,952,000) -- -- Amortization of deferred stock-based compensation........ 1,169,000 -- 1,169,000 Charge for issuance of Series A and B options................... -- -- 67,000 Issuance of Series D convertible preferred stock................. -- -- 33,198,000 Net loss.......................... -- (15,300,000) (15,300,000) ------------ ------------- ------------ Balance at June 30, 1999.......... (7,783,000) (15,325,000) 30,954,000 Conversion of convertible preferred stock................. -- -- -- Conversion of redeemable convertible preferred stock..... -- -- 2,140,000 Reincorporation into Delaware and change in par value of common stock........................... -- -- -- Issuance of common stock from initial public offering......... -- -- 169,351,000 Issuance of common stock in private placement............... -- -- 143,946,000 Issuance of common stock through employee stock purchase plan.... -- -- 504,000 Exercise of stock options......... -- -- 316,000 Repurchase of option shares exercised....................... -- -- (23,000) Issuance of common stock for acquisition..................... -- -- 23,249,000 Issuance of warrant for marketing services........................ (8,600,000) -- -- Deferred stock-based charges...... (2,784,000) -- -- Amortization of deferred stock-based compensation........ 6,346,000 -- 6,346,000 Payment received on notes receivable from stockholders.... -- -- 300,000 Interest earned on notes receivable from stockholders.... -- -- (63,000) Net loss.......................... -- (91,286,000) (91,286,000) ------------ ------------- ------------ Balance at June 30, 2000~~.......... $(12,821,000) $(106,611,000) $285,734,000 ============ ============= ============~~

~~YEAR~~ ~~ENDED~~Securities ~~JUNE~~registered ~~30,~~pursuant ~~JULY~~to ~~21,~~Section ~~1997 ---------------------------~~ 12(~~INCEPTION~~b) ~~THROUGH~~of ~~2000~~the ~~1999 JUNE 30, 1998 ------------ ------------ ------------------- Cash flows from operating activities~~Act: ~~Net~~None Securities ~~loss..................................................~~registered ~~$(91,286,000)~~pursuant ~~$(15,300,000) $(25,000) Adjustments~~ to ~~reconcile~~Section net loss to net cash used for operating activities: Depreciation and amortization........................... 9,252,000 633,000 -- Amortization of intangible assets....................... 5,525,000 -- -- Allowance for doubtful accounts......................... 1,491,000 160,000 -- Stock-based charges..................................... 6,346,000 1,236,000 -- Accrued interest--notes receivable from stockholders.... 12(~~63,000~~g) ~~-- -- Loss on disposal~~ of ~~fixed assets........................ -- 98,000 -- Changes in operating assets and liabilities (excluding~~ the ~~effects of acquisition)~~Act: Common ~~Restricted cash....................................... (7~~Stock,~~809,000)~~ ~~(1,789,000) -- Accounts receivable~~$.~~..................................~~001 ~~(14,986,000)~~par value (~~2,413,000)~~Title -- Other assets.......................................... (4,153,000) (1,308,000) -- Accounts payable and accrued expenses................. 14,134,000 6,586,000 24,000 Deferred revenue...................................... (1,915,000) 2,739,000 -- ------------ ------------ -------- Net cash used for operating activities................ (83,464,000) (9,358,000) (1,000) ------------ ------------ -------- Cash flows from investing activities: Purchases of ~~property and equipment....................... (20,756,000~~Class) (13,609,000) -- Purchase of patent rights................................. (1,000,000) -- -- Purchase of short-term investments........................ (43,853,000) -- -- Sale of short-term investments............................ 7,500,000 -- -- Proceeds from sale of fixed assets........................ -- 226,000 -- ------------ ------------ -------- Net cash used for investing activities................ (58,109,000) (13,383,000) -- ------------ ------------ -------- Cash flows from financing activities: Payments on capital leases................................ (2,690,000) (241,000) -- Payments on notes payable................................. (1,484,000) (165,000) -- Proceeds from bridge loan................................. -- 100,000 -- Proceeds from equipment refinancing....................... 5,680,000 -- -- Proceeds from notes payable............................... 3,498,000 -- -- Repayment of notes receivable from stockholders........... 300,000 -- -- Proceeds from exercise of stock options................... 316,000 319,000 -- Net proceeds from issuance of common stock................ 313,430,000 2,000 2,000 Net proceeds from issuance of redeemable convertible preferred stock......................................... -- 2,140,000 -- Net proceeds from issuance of convertible preferred stock................................................... -- 44,620,000 -- ------------ ------------ -------- Net cash provided by financing activities............. 319,050,000 46,775,000 2,000 ------------ ------------ -------- Change in cash and cash equivalents..................... 177,477,000 24,034,000 1,000 Cash and cash equivalents, beginning of period.............. 24,035,000 1,000 -- ------------ ------------ -------- Cash and cash equivalents, end of period.................... $201,512,000 $ 24,035,000 $ 1,000 ------------ ------------ -------- Supplemental disclosure of cash flow activities: Cash paid for interest.................................... $ 1,412,000 $ 110,000 $ -- ============ ============ ======== Supplemental disclosure of non-cash investing and financing activities: Note receivable from stockholders in connection with the exercise of stock options............................... $ -- $ 1,029,000 $ -- Bridge loan repayment in exchange for issuance of convertible preferred stock............................. -- 100,000 -- Equipment obtained under capital leases................... 7,894,000 3,739,000 -- Equipment financed with notes payable..................... -- 1,725,000 -- Accounts payable financed with note payable............... -- 210,000 -- Common stock issued for acquisition....................... 23,249,000 -- -- Issuance of common stock warrant for marketing services... 8,600,000 -- -- Issuance of common stock for patent rights................ 349,000 -- --

~~JUNE~~ Indicate by ~~30,~~check ~~2000~~mark ~~JUNE~~whether ~~30,~~the ~~1999~~registrant: ~~--------------~~(1) has ~~--------------~~filed all reports required to be filed by Section 13 or 15(~~UNAUDITED~~d) ~~Revenues....................................................~~of $the ~~55,506,000~~Securities $Exchange ~~4,634,000~~Act ~~Net~~of ~~loss....................................................~~1934 $during the preceding 12 months (~~96,867,000~~or for such shorter period that the registrant was required to file such reports), $and (~~18,483,000~~2) has ~~Net~~been ~~loss~~subject ~~per~~to ~~share..........................................~~such $filing ~~(1.31)~~requirements $for (1the past 90 days.~~60)~~ Yes /x/ No / /

~~JUNE~~ Indicate by ~~30,~~a ~~2000~~check ~~JUNE~~mark ~~30,~~if ~~1999~~disclosure ~~--------------~~of ~~--------------~~delinquent ~~Computer~~filers ~~software~~pursuant ~~and~~to ~~equipment.............................~~Item ~~$24,541,000~~405 ~~$14,068,000~~of ~~Furniture~~Regulation S-K ~~and~~is ~~fixtures......................................~~not ~~5,679,000~~contained ~~929~~herein,~~000~~ ~~Assets~~and ~~under~~will ~~capital~~not ~~leases.................................~~be 17contained,~~313,000~~ ~~3,739,000~~to ~~-----------~~the ~~-----------~~best of ~~Total.......................................................~~registrant's 47knowledge,~~533,000~~ ~~18,736,000~~in ~~Less:~~definitive ~~accumulated~~proxy ~~depreciation,~~or ~~including~~information ~~accumulated~~statements ~~capital~~incorporated ~~lease~~by ~~amortization~~reference ofin ~~$3,007,000~~Part III ~~and~~of ~~$246,000~~this atForm 10-K ~~June~~or ~~30,~~any ~~2000~~amendment ~~and~~to ~~1999, respectively...................... (9,871,000) (620,000)~~ this Form 10-~~----------~~K / / ~~----------- $37,662,000 $18,116,000 =========== ===========~~

~~JUNE~~ As of 30September 21, ~~2000~~2001, ~~JUNE~~the ~~30,~~aggregate ~~1999~~market ~~--------------~~value of voting stock held by non-~~-------------~~affiliates ~~Goodwill....................................................~~of ~~$14~~the registrant,~~260,000~~ $based --upon ~~Software~~the ~~and~~last ~~technology.....................................~~reported ~~7,000,000~~sales --price ~~Non-compete~~of ~~agreements......................................~~the registrant's ~~2,200,000~~common --stock ~~Other~~on ~~intangible~~such ~~assets.....................................~~date ~~1,588,000~~as --reported ~~-----------~~by ~~----------~~the ~~25,048,000~~Nasdaq --National ~~Less:~~Market ~~accumulated~~was ~~amortization~~approximately $32.~~.............................~~5 million (~~5,525,000)~~calculated --by ~~-----------~~excluding ~~----------~~shares ~~$19,523,000~~owned $beneficially --by ~~===========~~directors ~~==========~~and officers).

~~JUNE~~ As of 30September 21, ~~2000 JUNE 30~~2001, ~~1999~~there ~~--------------~~were ~~-------------- Accrued payroll and related expenses........................ $2~~125,~~293~~743,~~000~~481 $shares ~~619,000~~of ~~Other~~the ~~accrued~~registrant's ~~liabilities...................................~~common ~~213,000~~stock ~~642,000 Accrued offering expenses~~outstanding.~~..................................~~ ~~-- 260,000 ---------- ---------- $2,506,000 $1,521,000 ========== ==========~~

~~JUNE~~DOCUMENTS ~~30,~~INCORPORATED ~~2000~~BY JUNE 30, 1999 -------------- -------------- Notes payable to vendor, quarterly payments of $198,000, including interest at 15.3% through March 2002, uncollateralized.......................................... $ 1,195,000 $ 1,770,000 Note payable, monthly payments of $108,000, including interest at 13.7% through August 2002, collateralized by certain property and equipment............................ 2,589,000 -- ----------- ----------- 3,784,000 1,770,000 Less: current portion....................................... (1,641,000) (560,000) ----------- ----------- $ 2,143,000 $ 1,210,000 =========== ===========REFERENCE

~~SHARES~~ This Annual ~~------------------------~~Report ~~LIQUIDATION~~on ~~REDEMPTION~~Form 10-K ~~AUTHORIZED~~incorporates ~~OUTSTANDING~~certain ~~AMOUNT~~information ~~AMOUNT~~by ~~----------~~reference ~~-----------~~from ~~-----------~~the ~~----------~~Joint ~~Series~~Proxy AStatement/Prospectus ~~redeemable~~of ~~convertible..............~~United 11Online,~~956,000~~ Inc. ~~11,956,000~~("Proxy Statement/Prospectus") $as ~~1,063,000~~filed ~~$1,063,000~~with ~~Series~~the BSecurities ~~redeemable~~and ~~convertible..............~~Exchange ~~7,275,000~~Commission ~~7,274,000~~on 1August 30,~~077,000~~ ~~1,077,000~~2001 ~~Series~~(pursuant Cto ~~convertible.........................~~Rule 424(b)) ~~27,681,000~~and ~~27,100,000~~Amendment ~~11,646,000 -- Series D convertible~~No.~~........................~~ 2 ~~19,500,000~~to ~~18,082,000~~the ~~33,271,000~~Registration --Statement ~~Undesignated................................. 8,588,000~~ on Form S--4 --of --United ~~----------~~Online, Inc. ~~----------~~of ~~-----------~~which ~~----------~~that ~~75,000,000~~prospectus ~~64,412,000~~is ~~$47,057,000~~a ~~$2,140,000~~part ~~==========~~(Registration ~~==========~~No. 333-63704). ~~=========== ==========~~

~~JULY~~ ~~21,~~ ~~1997 YEAR ENDED (INCEPTION) ------------------------------- THROUGH JUNE 30~~ NETZERO, ~~2000 JUNE 30, 1999 JUNE 30, 1998 -------------- -------------- -------------- Numerator: Net loss~~ INC.~~..........................................~~ FORM $(91,286,000) $(15,300,000) $ (25,000) ------------ ------------ ----------- Denominator: Weighted average common shares..................... 87,941,000 19,401,000 15,000,000 Adjustment for common shares subject to repurchase....................................... (13,818,000) (8,609,000) -- ------------ ------------ ----------- Adjusted weighted average common shares............ 74,123,000 10~~,792,000 15,000,000 ============ ============ =========== Basic and diluted net loss per share................. $ (1.23) $ (1.42) $~~ --K ~~============~~ANNUAL ~~============~~REPORT TABLE ~~===========~~OF CONTENTS

JUNE 30, 2000 JUNE 30, 1999 ------------- ------------- Deferred tax assets: Net operating loss carryforwards................ $ 36,313,000 $ 5,868,000 Other........................................... 1,730,000 125,000 ------------ ----------- Total deferred tax assets....................... 38,043,000 5,993,000 Less: valuation allowance....................... (38,043,000) (5,993,000) ------------ ----------- Net deferred taxes................................ $ -- $ -- ============ ===========

		Page
PART I		1
ITEM 1.	BUSINESS.	1
ITEM 2.	PROPERTIES.	1
ITEM 3.	LEGAL PROCEEDINGS.	1
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.	1
PART II		2
ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.	2
ITEM 6.	SELECTED FINANCIAL DATA.	2
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	2
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	2
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.	2
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.	3
PART III		3
ITEM 10.	DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.	3
ITEM 11.	EXECUTIVE COMPENSATION.	3
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.	3
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.	3
PART IV		4
ITEM 14.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.	4

WEIGHTED AVERAGE NUMBER PRICE EXERCISE OF SHARES PER SHARE PRICE ----------- ------------- -------- Options outstanding at July 21, 1997 (inception)......... -- $ -- $ -- Granted................................................ 4,285,000 .03 .03 ----------- Options outstanding at June 30, 1998..................... 4,285,000 .03 .03 Granted................................................ 13,865,000 .03 - 3.33 .26 Exercised.............................................. (13,601,000) .03 - .87 .10 Canceled............................................... (1,052,000) .03 - .10 .04 ----------- Options outstanding at June 30, 1999..................... 3,497,000 .03 - 3.33 .69 Granted................................................ 7,307,000 1.03 - 35.56 16.40 Exercised.............................................. (674,000) .03 - 3.33 .49 Canceled............................................... (1,559,000) .03 - 34.50 7.64 ----------- Options outstanding at June 30, 2000..................... 8,571,000 $ .03 - 35.56 $12.92 =========== ============= ======i

~~OPTIONS~~ This ~~EXERCISED~~report ~~OPTIONS~~on ~~OUTSTANDING~~Form 10-K ~~OPTIONS~~contains ~~EXERCISABLE~~forward-looking ~~SUBJECT~~statements TObased ~~REPURCHASE~~on ~~---------------------------------------~~our ~~--------------------~~current ~~----------------------~~expectations, ~~WEIGHTED~~estimates ~~AVERAGE~~and ~~AVERAGE~~projections ~~AVERAGE~~about ~~AVERAGE~~our operations, ~~NUMBER~~industry, ~~REMAINING~~financial ~~EXERCISE~~condition ~~NUMBER~~and ~~EXERCISE~~liquidity. ~~NUMBER~~Words ~~REPURCHASE~~such ~~PRICES~~as OF"anticipates," ~~SHARES~~"expects," ~~CONTRACTUAL~~"intends," ~~LIFE~~"plans," ~~PRICE~~"believes," OF"may," ~~SHARES~~"will," ~~PRICE~~or OFsimilar ~~SHARES~~expressions ~~PRICE~~are ~~------~~intended ~~---------~~to identify forward-~~---------------~~looking ~~--------~~statements. ~~---------~~In ~~--------~~addition, ~~---------~~any ~~----------~~statements $that ~~.03~~refer to ~~1.03 2~~expectations,~~068,000~~ ~~8.85~~projections $or ~~0.73~~other 1characterizations of future events or circumstances,~~448,000~~ $including ~~0.67~~any 6underlying assumptions,~~901,000~~ ~~$0.13~~are forward-looking 3statements.33 toSuch ~~13.75~~statements ~~1,990,000~~are ~~9.26~~not ~~8.95~~guarantees ~~745,000~~of ~~6.65~~future --performance --and ~~14.63~~are subject to ~~19.94~~certain 3risks,~~337,000~~ ~~1.85~~uncertainties ~~19.22~~and ~~68,000~~assumptions ~~19.25~~that --are --difficult ~~20.56~~ to 29predict.13 1Therefore,~~103,000~~ ~~9.08~~our actual ~~22.59~~results ~~185,000~~could ~~23.09~~differ --materially and adversely from those expressed in any forward--looking ~~30.00~~statements toas ~~35.56~~a ~~73,000~~result ~~9.34~~of 32various factors.59 ~~29,000~~We ~~31.25~~undertake --no --obligation ~~---------~~to ~~---------~~revise or update publicly any forward-~~--------~~looking ~~8,571,000~~statements ~~2,475,000~~for 6any reason,~~901,000~~ ~~=========~~except ~~=========~~as ~~=========~~required by law.

~~JULY~~ ~~21,~~ ~~1997~~ PART YEAR ENDED (INCEPTION) ------------------------------ THROUGH JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 1998 -------------- ------------- ------------- Risk-free interest rates............... 6% 5% 6% Expected lives (in years).............. 5 4 4 Dividend yield......................... 0% 0% 0% Expected volatility.................... 85% 0% 0%I

AS ~~REPORTED~~ ITEM ~~PRO FORMA ------------ ------------- Year ended June 20, 2000: Net Loss........................................ $(91,286,000) $(105,365,000) Basic and diluted net loss per share............ (~~1.~~23)~~ (1BUSINESS.42) Year ended June 30, 1999: Net loss........................................ $(15,300,000) $ (15,331,000) Basic and diluted net loss per share............ (1.42) (1.42) Period from July 21, 1997 (inception) through June 30, 1998: Net loss........................................ $ (25,000) $ (25,000) Basic and diluted net loss per share............ -- --

~~QUARTER~~ The ~~ENDED~~information ~~---------------------------------------------------~~set ~~SEPTEMBER~~forth 30under ~~DECEMBER~~the 31caption ~~MARCH~~"NetZero's 31Business" ~~JUNE~~on 30pages 99 -~~------------~~ 109 ~~------------~~of ~~---------~~the ~~--------~~Proxy ~~(IN~~Statement/Prospectus ~~THOUSANDS,~~is ~~EXCEPT~~incorporated herein ~~FOR~~by ~~PER~~this ~~SHARE AMOUNTS) FISCAL 2000 Net revenues~~reference.~~....................................~~ $ 7,720 $ 12,242 $ 16,858 $ 18,686 Gross profit (loss).............................. (4,373) (2,906) (1,601) 871 Loss from operations............................. (14,991) (26,513) (26,624) (29,971) Net loss......................................... $(14,927) $(24,576) $(24,860) $(26,923) Basic and diluted net loss per share............. $ (1.04) $ (0.27) $ (0.27) $ (0.26) FISCAL 1999 Net revenues..................................... $ -- $ 122 $ 781 $ 3,731 Gross loss....................................... (6) (942) (3,198) (3,646) Loss from operations............................. (217) (1,789) (5,125) (8,284) Net loss......................................... $ (217) $ (1,795) $ (5,095) $ (8,193) Basic and diluted net loss per share............. $ (0.02) $ (0.22) $ (0.50) $ (0.72)

~~ADDITIONS~~ ~~------------------------~~ ~~BALANCE~~ ITEM AT CHARGED TO WRITE-OFFS BALANCE AT BEGINNING COSTS AND NET OF END OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF PERIOD EXPENSES RECOVERIES PERIOD -------------------------------------------- ---------- ----------- ---------- ----------- Year ended June 30, 20002.~~...................~~ ~~$ 160,000 $ 1,834,000 $343,000(a) $ 1,651,000 Year ended June 30, 1999~~PROPERTIES.................... $ -- $ 160,000 $ -- $ 160,000 Period from July 21, 1997 (inception) to June 30, 1998.......................... $ -- $ -- $ -- $ -- VALUATION ALLOWANCE FOR DEFERRED TAX ASSETS -------------------------------------------- Year ended June 30, 2000.................... $5,993,000 $32,050,000 $ -- $38,043,000 Year ended June 30, 1999.................... $ 10,000 $ 5,983,000 $ -- $ 5,993,000 Period from July 21, 1997 (inception) to June 30, 1998.......................... $ -- $ 10,000 $ -- $ 10,000

EXHIBIT NO. DOCUMENT ----------- -------- 3.1** Certificate of Incorporation of the Registrant. 3.2** Bylaws of the Registrant. 4.1** Specimen common stock certificate. 10.1+ Amendment to the Amended and Restated Start Page Agreement dated as of July 1, 2000 by and between the Registrant and LookSmart, Ltd. 10.2***++ Amended and Restated Start Page Agreement dated as of February 1, 2000 by and between the Registrant and LookSmart, Ltd. 10.3*** The ~~ZeroPort~~information ~~Advertising~~set ~~Agreement~~forth ~~dated~~under ~~as of February 5, 2000 by and between~~ the ~~Registrant~~caption ~~and~~"NetZero's ~~idealab!~~Business—Facilities" Inc. 10.4*** Employment Agreement dated as of December 1, 1999, by and between the Registrant and Brian Woods. 10.5**++ Adserver License Agreement dated as of August 28, 1998, between the Registrant and NetGravity, as amended. 10.6** Technology Assignment Agreement dated as of September 11, 1998, by and between the Registrant and Impact Software, Inc. 10.7** Form of Stock Restriction Agreement between the Registrant and the founders. 10.8**++ Quotation for Dialinx Services dated December 9, 1998, between the Registrant and GTE Internetworking Incorporated, as amended. 10.9** Master Agreement dated as of October 13, 1998, by and between the Registrant and GTE Internetworking Incorporated. 10.10** Standard Office Lease dated as of March 6, 1999, as amended on ~~March~~page 7,110 ~~1999, by and between the Registrant and Westlake Gardens. 10.11** Addendum to Stock Option Agreements. 10.12** Employment Agreement dated as~~ of ~~March 20, 1999, by and between~~ the ~~Registrant~~Proxy ~~and~~Statement/Prospectus ~~Frederic~~is A.incorporated ~~Randall,~~herein Jr. 10.13** Employment Agreement dated as of March 20, 1999, between the Registrant and Mark R. Goldston. 10.14** Stock Pledge Agreement dated as of March 20, 1999 between the Registrant and Mark R. Goldston, as amended. 10.15** Note secured by this ~~Stock Pledge Agreement dated March 20, 1999, made by Mark R~~reference. Goldston in favor of the Registrant, as amended. 10.16**++ Software License and Service Agreement dated as of April 14, 1999, between the Registrant and Oracle Corporation. 10.17** Employment Agreement dated as of April 17, 1999, by and between the Registrant and Charles S. Hilliard. 10.18** Stock Pledge Agreement dated April 17, 1999, between the Registrant and Charles S. Hilliard. 10.19** Note secured by Stock Pledge Agreement dated April 17, 1999 made by Charles S. Hilliard in favor of the Registrant.

~~EXHIBIT~~ ~~NO.~~ ~~DOCUMENT~~ ITEM ~~----------- -------- 10~~3.20** ~~Amended~~LEGAL ~~and Restated Investors' Rights Agreement dated as of May 10, 1999, by and among the Registrant and the investors, officers and founders listed on schedules thereto~~PROCEEDINGS. 10.21** 1998 Stock Option/Stock Issuance Plan. 10.22** 1999 Stock Option/Stock Issuance Plan. 10.23** Form of Indemnification Agreement between the Registrant and its directors. 10.24** 1999 Stock Incentive Plan. 10.25** Employee Stock Purchase Plan. 10.26** Form of Indemnification Agreement between the Registrant and its executive officers. 11.1 Statement re computation of earnings per share (included in Note 11 to the consolidated financial statements filed as part of this Annual Report on Form 10-K). 23.1 Consent of PricewaterhouseCoopers LLP, independent accountants. 27.1 Financial Data Schedule.

The information set forth under the caption "NetZero's Business—Legal Proceedings" on pages 110 - 111 of the Proxy Statement/Prospectus is incorporated herein by this reference.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

No matters were submitted to a vote of NetZero's security holders during the quarter ended June 30, 2001.

PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

Price Range for NetZero Common Stock

NetZero has been quoted on the Nasdaq National Market under the symbol "NZRO" since September 23, 1999. The following table sets forth the high and low closing sales prices per share of common stock:

		High		Low
Fiscal Year Ended June 30, 2001
	Fourth Quarter	$	1.270	$	0.500
	Third Quarter		1.719		0.500
	Second Quarter		2.469		0.719
	First Quarter		7.938		2.125
Fiscal Year Ended June 30, 2000
	Fourth Quarter	$	16.063	$	5.219
	Third Quarter		35.563		15.000
	Second Quarter		33.938		19.000
	First Quarter (since September 24, 1999)		29.125		25.313

On September 21, 2001, the last reported sales price of NetZero common stock was $0.38 and there were 659 stockholders of record.

Dividend Policy

The information set forth under the caption "NetZero's Business—Dividend Policy" on page 111 of the Proxy Statement/Prospectus is incorporated herein by this reference.

ITEM 6. SELECTED FINANCIAL DATA.

The information set forth under the captions "NetZero's Selected Financial Data" on page 65 and "NetZero's Selected Financial Data—Significant Trends" on page 66 of the Proxy Statement/Prospectus is incorporated herein by this reference.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The information set forth under the caption "NetZero's Management's Discussion and Analysis of Financial Condition and Results of Operations" on pages 67 - 80 of the Proxy Statement/Prospectus is incorporated herein by this reference. The information set forth under the caption "Risk Factors" on pages 12 - 25 of the Proxy Statement/Prospectus is also incorporated herein by this reference; such information sets forth the risks of the combined businesses of NetZero and Juno Online Services, Inc. ("Juno") after the close of the merger agreement by and among NetZero, Juno, United Online, Inc., NZ Acquisition Corp. and JO Acquisition Corp. which closed on September 25, 2001 immediately prior to the filing of this report on Form 10-K.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The information set forth under the caption "NetZero's Management's Discussion and Analysis of Financial Condition and Results of Operations—Quantitative and Qualitative Disclosure About Market Risk" on page 80 of the Proxy Statement/Prospectus is incorporated herein by this reference.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

NetZero's financial statements are set forth on pages F-12 through F-37 of the Proxy Statement/Prospectus and are incorporated herein by this reference. NetZero's supplementary financial information is set forth under the caption "NetZero's Selected Financial Data—Quarterly Financial Data (unaudited)" on page 66 of the Proxy Statement/Prospectus and is incorporated herein by this reference.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

Not applicable.

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

The information set forth under the caption "NetZero's Management" on pages 125 - 127 of the Proxy Statement/Prospectus is incorporated herein by this reference.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires that our executive officers and directors, and persons who own more than 10 percent of a registered class of our equity securities, file reports of ownership and changes in ownership (Forms 3, 4 and 5) with the Securities and Exchange Commission. Executive officers, directors and greater-than-ten-percent holders are required to furnish us with copies of all of the forms that they file. Based solely on our review of these reports or written representations from certain reporting persons, we believe that during the 2001 fiscal year, all filing requirements applicable to our officers, directors, greater-than-ten-percent beneficial owners and other persons subject to section 16(a) of the Exchange Act were complied with, except that Michael Mathieu filed a late Form 3 upon becoming a Section 16 officer in November 2000.

ITEM 11. EXECUTIVE COMPENSATION.

The information set forth under the caption "NetZero's Management" on pages 128 - 132 of the Proxy Statement/Prospectus is incorporated herein by this reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

The information set forth under the caption "NetZero's Principal Stockholders" on pages 133 - 134 of the Proxy Statement/Prospectus is incorporated herein by this reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

The information set forth under the caption "NetZero's Management—Management Indebtedness" on pages 131 - 132 of the Proxy Statement/Prospectus is incorporated herein by this reference.

PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

(a) 1. Financial Statements. The following financial statements of NetZero are incorporated herein by this reference from the Proxy Statement/Prospectus beginning on the pages referenced below:

		Page
Report of Independent Accountants		F-12
Consolidated Balance Sheets		F-13
Consolidated Statements of Operations and Comprehensive Loss		F-14
Consolidated Statements of Stockholders' Equity (Deficit)		F-15
Consolidated Statements of Cash Flow		F-16
Notes to Consolidated Financial Statements		F-17

2. Financial Statement Schedules. The following financial statement schedule of NetZero is incorporated herein by this reference from the pages of the Amendment No. 2 to Registration Statement on Form S-4 of United Online (Registration No. 333-63704) filed with the Securities and Exchange Commission on August 24, 2001, beginning on the pages referenced below:


	Report of Independent Accountants on Financial Statement Schedule		II-3
	Schedule II—Valuation and Qualifying Accounts		II-4

All other schedules have been omitted because they are not required or the required information is included in NetZero's consolidated financial statements and notes thereto.

3. Exhibits.

2.1(1	)	Agreement and Plan of Merger, dated as of June 7, 2001, by and among the Registrant, Juno Online Services, Inc. ("Juno"), United Online, Inc. ("United Online, Inc."), NZ Acquisition Corp. and JO Acquisition Corp.
3.1(2	)	Certificate of Incorporation of the Registrant.
3.2(2	)	Bylaws of the Registrant.
4.1(2	)	Specimen common stock certificate.
10.1(3	)	The ZeroPort Advertising Agreement dated as of February 5, 2000 by and between the Registrant and idealab! Inc.
10.2(3	)	Employment Agreement dated as of December 1, 1999, by and between the Registrant and Brian Woods, as amended.
10.3(2	)	Standard Office Lease dated as of March 6, 1999, as amended on March 7, 1999, by and between the Registrant and Westlake Gardens.
10.4(2	)	Addendum to Stock Option Agreements.
10.5(2	)	Employment Agreement dated as of March 20, 1999, by and between the Registrant and Frederic A. Randall, Jr.
10.6(2	)	Employment Agreement dated as of March 20, 1999, between the Registrant and Mark R. Goldston.
10.7(2	)	Stock Pledge Agreement dated as of March 20, 1999, between the Registrant and Mark R. Goldston, as amended.
10.8(2	)	Note Secured by Stock Pledge Agreement dated March 20, 1999, made by Mark R. Goldston in favor of the Registrant, as amended.
10.9(2	)	Software License and Services Agreement dated as of April 14, 1999, between the Registrant and Oracle Corporation.
10.10(2	)	Employment Agreement dated as of April 17, 1999, by and between the Registrant and Charles S. Hilliard.
10.11(2	)	Stock Pledge Agreement dated April 17, 1999, between the Registrant and Charles S. Hilliard.
10.12(2	)	Note Secured by Stock Pledge Agreement dated April 17, 1999, made by Charles S. Hilliard in favor of the Registrant.
10.13(2	)	Amended and Restated Investors' Rights Agreement dated as of May 10, 1999, by and among the Registrant and the investors, officers and founders listed on schedules thereto.
10.14(2	)	1998 Stock Option/Stock Issuance Plan.
10.15(2	)	1999 Stock Option/Stock Issuance Plan.
10.16(2	)	Form of Indemnification Agreement between the Registrant and its directors.
10.17(2	)	1999 Stock Incentive Plan.
10.18(2	)	1999 Employee Stock Purchase Plan.
10.19(2	)	Form of Indemnification Agreement between the Registrant and its executive officers.
10.20(4	)	Amendment to Employment Agreement dated as of February 9, 2001 by and between the Registrant and Mark R. Goldston.
10.21(4	)	Amendment to Employment Agreement dated as of February 9, 2001 by and between the Registrant and Charles S. Hilliard.

10.22(4	)	Amendment to Employment Agreement dated as of February 9, 2001 by and between the Registrant and Frederic A. Randall, Jr.
10.23(4	)	Amendment to Employment Agreement dated as of February 9, 2001 by and between the Registrant and Brian Woods.
10.24(4	)	Amendment to Stock Restriction Agreement dated as of April 8, 1999 by and between the Registrant and Ronald T. Burr.
10.25(4	)	Second Amendment to Stock Restriction Agreement dated as of February 9, 2001 by and between the Registrant and Ronald T. Burr.
10.26(5	)	NetZero, Inc. 2001 Non-Executive Stock Incentive Plan.
10.27(6	)	Form of Voting Agreement between Juno and each of the Registrant's directors and three of the Registrant's executive officers.
11.1		Statement re computation of net loss (included in Note 12 to the consolidated financial statements filed as part of the Proxy Statement/Prospectus which is filed as an exhibit hereto).
23.1		Consent of PricewaterhouseCoopers LLP.
99.1		Proxy Statement/Prospectus of United Online filed with the Securities and Exchange Commission on August 30, 2001 (pursuant to Rule 424(b) as part of Registration No. 333-63704).
99.2		Pages II-3 and II-4 to Amendment No. 2 to Registration Statement on Form S-4 of United Online, Inc. (Registration No. 333-63704) including the Financial Statement Schedule referenced in Item 14(a)(2).

(1): Included as Annex A to the Proxy Statement/Prospectus of United Online incorporated herein by reference and attached hereto as exhibit 99.1.
(2): Incorporated by reference from the exhibits to the Registrant's Registration Statement on Form S-1 and all amendments thereto (File No. 333-82827).
(3): Incorporated by reference herein to the Form 10-Q and all amendments thereto filed with the Securities and Exchange Commission on May 15, 2000.
(4): Incorporated by reference herein to the Form 10-Q filed with the Securities and Exchange Commission on May 15, 2001.
(5): Incorporated by reference herein to the Form S-8 filed with the Securities and Exchange Commission on May 24, 2001 (File No. 333-61534).
(6): Incorporated by reference herein from the exhibits to the Form 8-K filed by Juno with the Securities and Exchange Commission on June 12, 2001 (File No. 003-26009).
†: Confidential treatment has been requested for certain confidential portions of this exhibit pursuant to Rule 24b-2 under the Securities and Exchange Act, as amended. In accordance with Rule 24b-2, these confidential portions have been omitted from this exhibit and filed separately with the Securities and Exchange Commission.

(b) Reports on Form 8-K. A Form 8-K (Item 5) was filed on June 8, 2001 reporting the Registrant's agreement to merge with Juno.

(d) Financial Statement Schedules. The financial statement schedule required by Regulation S-X and Item 8 of this form is listed in Item 14(a)(2) of this Form 10-K.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Westlake Village, State of California, on September 25, 2001. NETZERO, INC.

		NETZERO, INC.
		By:
			/s/ MARK R. GOLDSTON Mark R. Goldston Chairman of the Board, Chief Executive Officer and President

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Mark R. Goldston, Frederic A. Randall, Jr. and Charles S. Hilliard, as his or her attorneys-in-fact, each with the power of substitution, for him or her in any and all capacities, to sign any amendment to this Annual Report on Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or substitutes may do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities and on the dates indicated:

Name	Title	Date

/s/ MARK R. GOLDSTON Mark R. Goldston	Chairman, Chief Executive Officer and President (Principal Executive Officer)	September 25, 2001
/s/ CHARLES S. HILLIARD Charles S. Hilliard	Senior Vice President, Finance and Chief Financial Officer (Principal Financial and Accounting Officer)	September 25, 2001
/s/ JAMES T. ARMSTRONG James T. Armstrong	Director	September 25, 2001
/s/ ROBERT BERGLASS Robert Berglass	Director	September 25, 2001
/s/ JENNIFER S. FONSTAD Jennifer S. Fonstad	Director	September 25, 2001
/s/ DENNIS HOLT Dennis Holt	Director	September 25, 2001

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FORM 10-K
NETZERO, INC. FORM 10-K ANNUAL REPORT TABLE OF CONTENTS
PART I
ITEM 1. BUSINESS.
ITEM 2. PROPERTIES.
ITEM 3. LEGAL PROCEEDINGS.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
ITEM 6. SELECTED FINANCIAL DATA.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
ITEM 11. EXECUTIVE COMPENSATION.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
SIGNATURES

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