Affiliation Networks Secures $25 Million in Funding to Grow 'Gen Y+' Online Media Company; Leading Company Also Appoints New Members to its Board of Directors.

SAN FRANCISCO--(BUSINESS WIRE)--May 24, 1999--

Affiliation Networks(TM), Inc. ("Affiliation"), the leading online media company for the Internet generation (12-29 year olds who have grown up using the Web), announced it secured $25 million in funding from The Walden Media and Information Technology Fund, Weiss Peck & Greer, Whitman Capital and Worldview Technology Partners. Affiliation will invest the additional capital in marketing, technology, tools and services to expand its current infrastructure of four networks, including ChickClick (www.chickclick.com), IGN.com (www.ign.com), Power Students (www.powerstudents.com) and the Daily Entertainment Network (www.theden.com). In addition, Affiliation announced the appointment of three new members to its board of directors.

With over 4 million unique visitors per month and a reach of over 7 percent of the online population, Affiliation Networks is one of the top 20 web properties worldwide(1). Affiliation creates Web networks focused around the interests of the Internet generation. Networks within Affiliation work with independent Web partners to provide content with a unique, targeted focus. For advertisers trying to reach "Generation Y," Affiliation's networks engage and interest this Web-savvy demographic. Visitors to the networks receive feature stories, news and other information from like-minded individuals in the Web community at large.

"The infusion of new capital to Affiliation Networks will give us the flexibility to grow our current base of loyal users, expand our networks, build new partnerships and expand our e-commerce offerings," said Mark Jung, president and chief executive officer.

Affiliation's new round of investors include:

The Walden Media and Information Technology Fund

Walden's Media and Information Technology (WMIT) Fund is part of The Walden Group of International Venture Funds, which manages over $1 billion in assets in 11 offices worldwide from its headquarters in San Francisco. WMIT invests in new media and internet companies in advertising, e-commerce, entertainment and education, and its strategic investors include America Online (NYSE:AOL), Apollo Group (Nasdaq:APOL), CBT Systems (Nasdaq:CBTSY), Creative Technology (Nasdaq:CREAF), Electronic Arts (Nasdaq:ERTS), Gartner Group (NYSE:IT), New Line Cinema, Times Mirror and the Washington Post/Kaplan (NYSE:WPO).

Weiss Peck & Greer

Weiss, Peck & Greer Venture Partners is a private venture capital partnership based in Menlo Park. The company has managed seven venture funds with $700 million of committed capital, and focuses on early and expansion-stage investments in the areas of e-commerce, Internet content, software and communications. Selected portfolio companies include Adaptec (Nasdaq:ADPT), Ciena (Nasdaq:CIEN), DoubleClick (Nasdaq:DCLK), eHealthinsurance.com, Electronics for Imaging (Nasdaq:EFII), Federal Express (NYSE:FDX), Galileo Technology (Nasdaq:GALT), Informatica Software (Nasdaq:INFA), iOwn.com, Phone.com, Premisys Communications (Nasdaq:PRMS) and Terayon (Nasdaq:TERN).

Whitman Capital

Whitman Capital, Inc. manages a cross-over fund, headquartered in Palo Alto, which invests in Internet and technology companies. Since its founding in 1994, Whitman Capital has invested in high growth, private and public companies including Citrix Systems (Nasdaq:CTXS), Exodus Communications (Nasdaq:EXDS), Legato Systems (Nasdaq:LGTO), Polycom (Nasdaq:PLCM) and Security Dynamics (Nasdaq:SDTI).

Worldview Technology Partners

Worldview is a venture capital firm with a strong record of investing in and building leading information technology companies. Worldview currently manages two funds with $270 million of committed capital. Worldview's investments include Calico Technology, NVIDIA (Nasdaq:NVDA), Assured Access, Redstone and Talkstar.com.

In addition to the recent funding, Affiliation Networks also announced the appointment of Rich LeFurgy, Michael Orsak and Rob Reid to its board of directors, joining current members Chris Anderson and Mark Jung.

"Each of these individuals has an excellent history in the online world, and they really understand the business of the Internet," said Chris Anderson, chairman of the board for Affiliation Networks and president, chief executive officer of Imagine Media. "We are confident that the addition of these key players will add significant value in the growth of Affiliation, which in turn will mean great results for our users, advertisers and partners."

Rich LeFurgy

LeFurgy is co-founder and chairman of the board of directors of the Internet Advertising Bureau, co-founder and chairman of the FAST Forward Steering Committee (a broad-based Internet industry coalition formed to accelerate development of online marketing) and consultant for the Walden Media and Information Technology Group. Previously, LeFurgy acted as vice president of sales and marketing for Starwave Corporation, an online media company co-founded by Paul Allen and acquired by The Walt Disney Company in 1997. Prior to this, LeFurgy was executive vice president, senior partner and a member of the board of directors at NW Ayer & Partners, a leading global advertising agency in New York.

Michael Orsak

Orsak is a general partner and co-founder of Worldview Technology Partners. Orsak has more than ten years of experience investing in leading U.S. information technology companies and currently sits on the board of directors for Upshot, Lightwave Microsystems, Lexiquest and Talkstar.com. Before founding Worldview, Orsak was fund co-manager at JAFCO America where he invested in companies including Tivoli Systems, Ciena, AFC, MMC Networks, Nvidia, Com21, Metacreations and PSI Net.

Robert Reid

Reid is currently CEO of Listen.com, a venture-backed, San Francisco-based Internet company that will soon launch in the online music market. Previously, Reid was a principal at 21st Century Internet Venture Partners, an early-stage venture capital firm based in San Francisco. In 1996, Reid authored Architects of the Web, which chronicles the rise of the Web as a commercial medium and was well received by critics. Reid's first involvement with the Internet came from his experience at Silicon Graphics (SGI), Inc.

About Affiliation Networks(TM), Inc.

Affiliation Networks is the leading online media company for the Internet generation -- the 12-29 year old demographic who has grown up using the Internet. Affiliation consists of content-driven Web networks and their independent partners who contribute up-to-date, unique content focused on specific areas of interest. Affiliation's networks include ChickClick (www.chickclick.com), IGN.com (www.ign.com), Power Students (www.powerstudents.com) and the Daily Entertainment Network (www.theden.com). Combined, Affiliation's four properties reach over four million visitors in its target group of young users. Affiliation, a private company located in San Francisco, CA, can be found at www.affiliation.com. -0-

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