CAFEPRESS INC. (PRSS) IPO

We estimate that we will receive net proceeds from this offering of 
approximately $41.4 million, based on the initial public offering price of 
$19.00 per share, after deducting the underwriting discounts and commissions 
and estimated offering expenses payable by us. We will not receive any 
proceeds from the sale of shares by any selling stockholder. 

The principal purposes for this offering are to increase our working capital, 
create a public market for our common stock and facilitate our access to the 
public capital markets. 

We currently intend to use our proceeds from this offering for general 
corporate purposes, including working capital and capital expenditures. The 
amount and timing of these expenditures will vary depending on a number of 
factors, including competitive and technological developments and the rate
of growth, if any, of our business. In addition, we may use a portion of 
the net proceeds to acquire or invest in complementary businesses, products 
or technologies, including in connection with our proposed acquisition of 
substantially all of the assets of Logo’d Softwear, Inc.; however, we do not 
currently have any understandings or agreements relating to any significant 
acquisitions or investments other than for Logo’d Softwear, Inc. 

As of the date of this prospectus, we have not determined all of the 
anticipated uses for the proceeds of this offering or the amounts that we 
will actually spend on the uses set forth above. The amount and timing of 
actual expenditures may vary significantly depending upon a number of factors,
including the amount of cash generated from our operations, competitive and 
technological developments and the rate of growth, if any, of our business. 
Accordingly, our management will have significant flexibility in applying the 
net proceeds of this offering. Pending use of the net proceeds as described 
above, we intend to invest the net proceeds of this offering in short-term, 
interest-bearing, investment-grade securities.

The market for customized products and services is large, fragmented and
intensely competitive and we expect competition to increase in the future. We 
face competition from a wide range of companies, including the following: 

•     traditional offline printing businesses; 
  
•     e-commerce companies, including large online retailers such as
      Amazon.com and eBay; 
 
•     physical and catalog retailers of personalized merchandise; 
 
•     online providers of unique goods such as Etsy, as well as various other
      private companies offering customized products such as CustomInk,
      Spreadshirt, Threadless or Zazzle; and 
 
•     online providers allowing users to customize goods in specific vertical
      markets, such as VistaPrint for small businesses and Shutterfly for
      photographic products. 
 
We also indirectly compete with Internet portals and shopping search engines 
that are involved in e-commerce or sell products or services either directly 
or in collaboration with other retailers. If more companies begin selling 
customized products, we will face more direct and intense competition. 
Furthermore, to the extent that other companies are able to replicate our 
processes or that advances in print-on-demand technologies reduce any 
technological or other early mover leads we may have, our business, prospects,
financial condition and results of operations could be harmed. 

Some of our current and potential competitors may have significantly greater 
financial, marketing and other resources than us, including significant brand 
recognition, sales volume and customer bases. In addition, other online 
retailers may be acquired by, receive investment from or enter into strategic 
relationships with, well-established and well-financed companies or investors 
which would help enhance their competitive positions. Some of our competitors 
may be able to secure goods and raw materials from suppliers on more favorable
terms, devote greater resources to marketing activities and promotional 
campaigns, adopt more aggressive pricing policies and devote substantially 
more resources to website and system development than us. Increased 
competition may reduce our operating margins, market share and brand 
recognition, or force us to incur losses. We may not be able to compete 
successfully against current and future competitors, and competitive pressures 
may harm our business, prospects, financial condition and results of 
operations. 

We believe the principal competitive factors in our industry include: 

•     favorable brand recognition and trust; 
 
•     technological expertise; 
 
•     quality, breadth and type of the products sold and services offered; 
 
•     ability to source products efficiently and cost effectively; 
 
•     ease of use and convenience; 
 
•     ability to anticipate and quickly adapt to changing customer demands
      and customer service needs; 
 
•     ability to recruit talent; 
 
•     competitive pricing; and 
 
•     effective marketing. 
 
We believe that we compete favorably with respect to each of these factors.