CENTERSPAN COMMUNICATIONS CORPORATION
Before investing in our common stock, you should consider carefully the following factors, as well as the
information contained in the rest of this prospectus and in the documents we incorporate by reference.
AS A RESULT OF THE SALE OF OUR HARDWARE BUSINESS ASSETS, OUR REVENUES
WILL DECLINE SUBSTANTIALLY AND INITIALLY DEPEND PRIMARILY UPON THE SALE
OF TWO PRODUCTS
We have historically derived nearly all of our revenues from the sale of game controller hardware products. In
October 1999, we sold our hardware business assets to Guillemot Corporation, and our product offerings are
currently limited to our Talk n' Play and iConference software products. Revenues from sales of our Talk n' Play
and iConference products, first shipped in January and June 1999, respectively, have been minor to date. As a
result, our revenues will decrease substantially as a result of the sale of the hardware business assets and will
depend primarily upon the sale of our two software products and any additional products we may develop in the
future. Sales of these products may not be substantial.
WE ARE COMPETING IN A NEW MARKET, WHICH MAY NOT DEVELOP OR WHERE WE
MAY FAIL TO GAIN MARKET ACCEPTANCE OF OUR PRODUCTS
The market for Internet community, collaboration and communications products is new and rapidly evolving. As
is common in rapidly evolving markets, demand and market acceptance for recently introduced products are
subject to high levels of uncertainty and risk. If this new market fails to develop, develops more slowly than
expected or becomes saturated with competitors, or our products do not achieve or sustain market acceptance,
it could have a material adverse effect on our business, results of operations, and financial condition.
WE MAY NOT BE ABLE TO DEVELOP ACCEPTABLE NEW PRODUCTS OR
ENHANCEMENTS TO OUR EXISTING PRODUCTS AT THE RATE REQUIRED BY OUR
RAPIDLY CHANGING MARKET, WHICH COULD ADVERSELY AFFECT US
Our future success depen