-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 MmdYhm36xh0WKQO5rCEmS/BJpUbeB6UlOzUzEng8m3gm4i1BHIiQC9xRpd0kNqy3
 0Qyxqn64iVSJzFlDBX0luw==

<SEC-DOCUMENT>0000935836-04-000111.txt : 20040311
<SEC-HEADER>0000935836-04-000111.hdr.sgml : 20040311
<ACCEPTANCE-DATETIME>20040311181715
ACCESSION NUMBER:		0000935836-04-000111
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040301
FILED AS OF DATE:		20040311

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			PALO ALTO INVESTORS
		CENTRAL INDEX KEY:			0001012084

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26811
		FILM NUMBER:		04663857

	BUSINESS ADDRESS:	
		STREET 1:		431 FLORENCE ST
		STREET 2:		STE 200
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94301

	MAIL ADDRESS:	
		STREET 1:		431 FLORENCE ST
		STREET 2:		STE 200
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94301

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MICRO CAP PARTNERS LP
		CENTRAL INDEX KEY:			0001132158

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26811
		FILM NUMBER:		04663856

	BUSINESS ADDRESS:	
		STREET 1:		470 UNIVERSITY AVENUE
		STREET 2:		470 UNIVERSITY AVENUE
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94301
		BUSINESS PHONE:		650-325-0772

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NEXPRISE INC
		CENTRAL INDEX KEY:			0001047499
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				770465496
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		5950 LA PLACE COURT
		STREET 2:		SUITE 200
		CITY:			CARLSBAD
		STATE:			CA
		ZIP:			92008
		BUSINESS PHONE:		(760) 804-1333

	MAIL ADDRESS:	
		STREET 1:		409 SHERMAN AVE.
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94306

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VENTRO CORP
		DATE OF NAME CHANGE:	20000222

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHEMDEX CORP
		DATE OF NAME CHANGE:	19990510
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>primary_doc.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0201</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2004-03-01</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001047499</issuerCik>
        <issuerName>NEXPRISE INC</issuerName>
        <issuerTradingSymbol>NXPS</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001012084</rptOwnerCik>
            <rptOwnerName>PALO ALTO INVESTORS</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>431 FLORENCE ST</rptOwnerStreet1>
            <rptOwnerStreet2>STE 200</rptOwnerStreet2>
            <rptOwnerCity>PALO ALTO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94301</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001132158</rptOwnerCik>
            <rptOwnerName>MICRO CAP PARTNERS LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1></rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity></rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode></rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>376371</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Notes 1, 2 and 3</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>16981</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The reporting persons (the &quot;Reporting Persons&quot;) are William Leland Edwards, Palo Alto Investors, LLC, a California limited liability company (&quot;PAI LLC&quot;), Palo Alto Investors, a California corporation (&quot;PAI Corp&quot;) and Micro Cap Partners, L.P. (&quot;Micro Cap&quot;), a California limited partnership. The sole manager of PAI LLC is PAI Corp. Mr. Edwards is the President and principal member of PAI LLC and the President and controlling shareholder of PAI Corp. PAI LLC is an investment adviser registered with the Securities and Exchange Commission, and is the investment adviser to, and general partner of, investment limited partnerships, including MicroCap, and the investment adviser to other clients.</footnote>
        <footnote id="F2">Mr. Edwards, PAI LLC and PAI Corp are filing this Form 3 jointly as a group but disclaim membership in a group with any other person. Micro Cap is filing this Form 3 jointly with the other Reporting Persons, but not as a member of a group, and it expressly disclaims membership in a group with any other person. The Reporting Persons, except for Micro Cap, disclaim beneficial ownership of such securities except to the extent of their respective pecuniary interest therein. The filing of this Form 3 on behalf of Micro Cap should not be construed as an admission that it is, and it disclaims that it is, the beneficial owner as defined in Rule 13d-3 under the Exchange Act, of any of the securities covered by this Form 3.</footnote>
        <footnote id="F3">These securities are owned directly by investment advisory client accounts of PAI LLC and investment limited partnerships, including Micro Cap, of which PAI LLC is the general partner and investment adviser. Mr. Edwards and PAI Corp. own these securities indirectly through PAI LLC.</footnote>
    </footnotes>

    <remarks>Footnote 4:  These securities are beneficially owned directly by Mr. Edwards.</remarks>

    <ownerSignature>
        <signatureName>Palo Alto investors</signatureName>
        <signatureDate>2004-03-11</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Palo Alto Investors, LLC</signatureName>
        <signatureDate>2004-03-11</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>William L. Edwards</signatureName>
        <signatureDate>2004-03-11</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Micro Cap Partners, L.P.</signatureName>
        <signatureDate>2004-03-11</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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