AMP is Agency of the Year: PROMO.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 8, 2004

Industry-Leading Growth, Standout Campaigns Earn AMP Industry

Recognition as Top Promotions Agency

AMP Agency, the promotions business of media and marketing services leader Alloy, Inc. (Nasdaq:ALOYE), won Agency of the Year honors from PROMO Magazine's PROMO 100 list of the BEST PROMOTIONAL AGENCIES. The win underscored a remarkable period for AMP, as it grew dramatically over two years, during adverse economic conditions for the industry. The agency managed expansion through strategic acquisition and strong organic growth, while eliciting high honors from PROMO for innovative campaigns, and praise for its creativity, execution, and overall service from leading brands in diverse segments.

For the past 11 years, PROMO Magazine has ranked the top 100 marketing promotional agencies, and is considered the Gold Standard of recognition among promotion professionals. Agencies were ranked in the PROMO 100 using three criteria: 2003 net revenue, net-revenue growth from 2001 to 2003, and campaign work.

To set the Top 25 ranking, PROMO's editors also considered recent account wins and losses; industry awards; management stability; average length of service with clients and agency-of-record status; and breadth of marketing services. PROMO senior editor Betsy Spethman simplifies it: "In all, we look for results including sales figures and other quantifiable campaign metrics, for bright ideas, for a distinctive fit to the brand. AMP stood out in all those areas."

Expanded Horizons

Spun-off from sister agency 360 Youth in 2001, AMP broadened its horizons and in relatively short time has achieved success and increased visibility among full-service agencies. "We greatly appreciate PROMO's recognition, and are moved by the acknowledgements from our clients," said AMP's CEO, Gary Colen. "This award marks an important transition for AMP, as we strive to reach new audiences with outstanding creative work and exemplary execution. Our mission has always been to grow, not just in the number and quality of our clients, but in our overall competencies, capabilities, and service, so we deliver the best product, the best experience, and the most accurate measurable results in the industry. The PROMO award is another indicator that we're on the right track, but this is only the beginning of the journey - the best is yet to come."

Managing Growth

Of the top 25 firms that submitted verifiable revenue data, AMP's revenue growth and increase in 2-year billings ranked first. However, key to AMP winning top honors was delivery of consistently effective campaigns, managed with strict attention to detail. PROMO praised AMP's handling of DTour Live as an example of fine execution. Simon Malls signed AMP last year to handle DTour, a major market mall tour with music, fashion and games for teens. Of AMP's performance, Simon Brand Ventures assistant VP Laurel Sibert said, "They're one of the finest execution agencies I've worked with -- very buttoned up." Heidi Korte, Volkswagen's leader of promotions and product placement, also acknowledged AMP's dedication to service, commenting, "We have a deep appreciation for their knowledge of the college target, and great respect for their capabilities." AMP has handled Volkswagen of America's Major Motion Picture Show campus tour since 2000 and also managed their Music Education Tour.

The Trickle-Up Effect

Success comes on the heels of consistent recognition for Alloy companies, including AMP and sister agency 360 YOUTH, specializing in proprietary media and marketing services geared to the youth market. Ad Age recently ranked Alloy as among the WORLD'S TOP 25 MARKETING AGENCIES, and number five on their list of TOP 100 MARKETING SERVICES AGENCIES. Ad Age rankings for the Top 50 Marketing Services Companies by discipline recognized 360 Youth as the #12 Direct Marketing Agency and #33 Interactive Agency, and AMP the #4 Sales Promotion Agency, marking a jump across all three categories from the 2003 rankings and solidifying Alloy's premier position in the media and marketing services arena. "The company is making strides across the board", noted Derek White, Alloy EVP and General Manager of Media & Marketing Businesses, who oversees both AMP and 360 Youth, along with Alloy's American Multicultural Marketing unit. "This award reflects on the high goals we've set for Alloy companies, and the diverse resources we bring to bear on all of our client engagements. We have truly synthesized the marketing process, making it more efficient, effective, and valuable for the wide array of companies we service."

Additionally, AMP received recognition for stellar campaign work for the success of the yearlong "Bringing It Home" tour, which earned them PROMO's PRO Award for 2003's Best Mobile Marketing Program. The "Bringing it Home" tour for Hewlett-Packard showcased at nearly 600 events in more than 300 cities across North America including the Indianapolis 500, Boston Marathon, and Kentucky Derby. "AMP created an award winning campaign that generated significant return on investment for HP - with impressive incremental consumer sales and a huge reach with more than 100 million impressions," Bob Major, event marketing manager, HP Imaging and Printing Group, said at the time.

It is a trend that Alloy CEO Matt Diamond welcomes, and expects. "It is a testament to AMP management that they have sustained exceptional growth while simultaneously putting the best products out there and innovating on the highest level." "This is what we're going for at Alloy - out-of-the-box thinking, detailed planning, and flawless execution in all of our businesses. I'm proud to say that the AMP folks don't just say it; they live it and deliver it, every day for their clients. They continue to raise the bar for the company and the industry, and that's exactly what we expect from them."

About AMP

Alloy Marketing & Promotion (AMP), is the promotional marketing business of Alloy, Inc. (Nasdaq:ALOY - News). As part of Alloy's Media & Marketing Division, AMP integrates the assets and experience of established promotion agencies and marketing services companies including the College Promotion and Marketing assets purchased from MarketSource Corporation, Triple Dot Communications, Y-Access, and Target Marketing & Promotions (TMP) to deliver effective, customized promotions. AMP's proprietary four-step Brand AMPLification process identifies a brand's essence and leverages key identifiers through a host of proven, high-impact tactics such as mobile marketing, buzz squads, integrated media promotions, co-branding, sampling, events, research, interactive design, and customer acquisition. Headquartered in Boston with offices in New York, Chicago, New Jersey, and Los Angeles, AMP clients include Diageo, Hasbro, AT&T Wireless, New Balance and Proctor & Gamble, among others. For more information on AMP, an Alloy Inc. company, please visit www.ampagency.com.

About Alloy

Alloy, Inc. is a media, direct marketing and marketing services company targeting Generation Y, a key demographic segment comprising the more than 60 million boys and girls in the United States between the ages of 10 and 24. Alloy's convergent media model uses a wide range of media assets to reach more than 25 million Generation Y consumers each month. Through Alloy's 360 Youth media and marketing services unit, marketers can connect with the Generation Y audience through a host of advertising and marketing programs incorporating Alloy's media and marketing assets such as direct mail catalogs, magazines, college and high school newspapers, Web sites, school-based media boards, college guides, and sponsored on- and off-campus events. Alloy generates revenue from its broad reach in the Generation Y community by providing marketers advertising and marketing services through 360 Youth and by selling apparel, accessories, footwear, room furnishings and action sports equipment directly to the youth market through catalogs, Web sites and magazines. For further information regarding Alloy, please visit our Web site at www.alloyinc.com.