WSPI Website Pros (MM)

William Blair & Company initiated research coverage of Website Pros, Inc. (Nasdaq:WSPI) ($9.90), the leading provider of do-it-for-me and do-it-yourself Web services for small and midsize businesses, with an Outperform rating and Aggressive Growth company profile. Analyst Troy Mastin estimated that the company would generate pro forma EPS of $0.79 in fiscal 2008 and $0.99 in fiscal 2009. �Website Pros offers what we consider to be one of the most comprehensive Web service offerings at an attractive price point, averaging $40 per month,� Mastin said. �The company�s success can be attributed to its proprietary work flow model, unique Web site building technology, scale, and reputation, enabling the company to maintain and expand its broad collection of partners and successfully market its proprietary brands directly to SMBs. Penetration remains very low; although Website Pros has more than 263,000 subscribers, there are an estimated 26.8 million small and midsize businesses in the United States, representing a substantial opportunity.� He added: �In addition to a robust industry outlook and expansive market opportunity, we believe Website Pros has significant potential to drive revenue and profitability from its existing customer base in three ways: deepening penetration of its higher-price-point Internet marketing solutions among legacy Website Pros customers, reducing churn, and cross-selling higher-end Website Pros services to the recently acquired Web.com DIY customers. Additional profit growth should also come from the Web.com acquisition in the form of cost synergies of more than $12 million in 2008.� William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months. William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position. William Blair & Company, L.L.C. (www.williamblair.com) is a Chicago-based investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. For important disclosures and information regarding the firm�s rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/Pages/news_story_dept.asp?uid=1346&depID=4 Additional information is available upon request.