EXACTTARGET, INC. (ET) IPO

We estimate that the net proceeds to us from the sale of 8,500,000 shares of 
our common stock in this offering will be approximately $147.3 million, based 
on the initial public offering price of $19.00 per share, and after deducting 
underwriting discounts and commissions and estimated offering expenses payable
by us. If the underwriters exercise their option to purchase additional shares
in full, we estimate that our net proceeds will be approximately $169.8 
million. 

The principal purposes of this offering are to create a public market for our 
common stock, obtain additional capital, facilitate our future access to the 
public equity markets, increase awareness of our company among potential 
clients and improve our competitive position. We intend to use the net 
proceeds from this offering primarily for general corporate purposes, such 
as expanding our sales and marketing teams, international operations, product 
development efforts and general and administrative functions, as well as for 
working capital. Additionally, we may choose to expand our business through 
acquisitions of or investments in other businesses, products or technologies, 
using cash or shares of our common stock. However, we have no commitments 
with respect to any such acquisitions or investments at this time. We also
intend to use a portion of the net proceeds to repay our term loan and 
revolving line of credit, of which $6.7 million and $10.0 million, 
respectively, were outstanding as of December 31, 2011, at a weighted average 
interest rate of 5.0% per annum. The term loan and revolving line of credit 
mature on December 1, 2013. 

Pending the use of the proceeds from this offering, we intend to invest the 
proceeds in short-term, interest-bearing, investment-grade instruments, 
certificates of deposit or direct or guaranteed obligations of the U.S. 
government.

The markets for interactive marketing solutions are fragmented, highly 
competitive and rapidly changing. We provide our solutions to a broad array of 
clients, ranging from enterprises to small businesses, while our competitors 
generally focus on either the small business market or the enterprise market. 
Our competitors include Aprimo, Inc. (which was acquired by Teradata 
Corporation in 2011), CheetahMail Inc. (a subsidiary of Experian Group 
Limited), e-Dialog Inc. (a subsidiary of eBay Inc.), Eloqua Limited, Epsilon 
Data Management, LLC (a subsidiary of Alliance Data Systems Corporation), 
Responsys, Inc., Silverpop Systems Inc., StrongMail Systems, Inc., Unica 
Corporation (which was acquired by International Business Machines Corporation 
in 2010) and Yesmail (a division of infoGROUP Inc.). To a lesser degree, we 
compete with a number of email marketing providers focused on the small 
business market. We also face competition from social media marketing 
providers, such as Buddy Media, Inc. and Radian6 Technologies, Inc. (which was 
acquired by salesforce.com, inc. in 2011), and from mobile marketing service 
providers, as well as from in-house solutions that our current and prospective 
clients may develop. 

We believe the principal competitive factors in our market include: 

 o product features, effectiveness, interoperability and reliability; 
 
 o breadth and expertise of sales organization; 
 
 o ability to integrate across interactive marketing channels; 
 
 o platform scalability; 
 
 o pace of innovation and product roadmap; 
 
 o domain expertise in interactive marketing; 
 
 o strength of professional services organization; 
 
 o price of products and services; 
 
 o integration with third-party applications and data sources; 
 
 o return on investment; 
 
 o ease of use; and 
 
 o size and financial stability of operations.  

We believe we currently compete effectively with respect to each of the factors
identified above.