After Just Four Months in Chicago, Kozmo.com Expands Service to the Loop; Fastest City Expansion in Kozmo.com's History; "E-mmediate" Gratification Comes to Chicago's Business Center.

Business Editors

CHICAGO--(BUSINESS WIRE)--July 11, 2000

Expanding service after just four months in Chicago, Kozmo.com today announced it is bringing its Internet-to-door - and now desk - delivery service to workers in the Loop. This represents the fastest city expansion in Kozmo.com's history.

"Chicagoans have quickly incorporated the convenience of Kozmo.com's free, one hour delivery into their busy lives, and we are thrilled to expand our service to time starved workers in the Loop," said John Hughes, General Manager of Kozmo.com Chicago. "Kozmo.com can delivery specialty foods and entertainment items to the office -- and we can eliminate all the frustrating stops commuters make on the way home. We give our customers back the time that would be lost waiting in traffic or long lines."

Kozmo.com's new service area includes the Loop, Greektown, UIC Campus, Streeterville, the Magnificent Mile, Navy Pier, Ukranian Village, Little Italy, Wicker Park, Humboldt Park, River West, Garfield Park, parts of Douglas Park, Columbus Park, the Merchandise Mart, the State of Illinois building, Union Station, Amoco Building, the Sears Tower, Bank of America building and Harris Bank.

Customers can log on to www.kozmo.com, input their zip code and register for free membership. Loop workers can go online and order from a variety of convenience and entertainment items for free, one-hour delivery to their offices or home. Products include video and DVD rentals, CD's, over-the-counter items, books, electronics, snack and specialty foods and convenience items like shampoo and diapers.

VHS and DVD rentals are good for three nights and are due back before noon on the day following the third night. No hassle returns can be made at any of Kozmo.com's more than 60 convenient "drop-boxes" located throughout the delivery area in delis, coffee shops, office buildings and other high-traffic areas, including Bar Louie, Kozys Cyclery & Fitness, Letitzia's Bakery, Briazz, Boudin's Sourdough Bakery. Or for $1.00 more, a Kozmonaut will come and pick it up at your door. Orders can be placed daily between 7 a.m. and midnight, seven days a week, 365 days a year.

Kozmo's Community Involvement

Kozmo.com is an active sponsor of community events including the Chicago Bicycle Federation's Boulevard Lakefront Tour, Friends of the Park's LATE Ride, Mrs. T's Triathlon, and the Chicago Sports & Social Club's Summer Leagues.

Background on Kozmo.com

Kozmo.com was created in 1997 by Joseph Park and Yong Kang who set out to revolutionize Internet shopping with free, "e-mmediate" delivery. Today, Kozmo.com is a leader in on-demand Internet-to-door delivery services. Kozmo.com provides consumers with a unique experience by seamlessly integrating online shopping with personalized delivery. Kozmo.com currently services New York, Boston, Washington, D.C., San Francisco, Seattle, Los Angeles, Chicago, Atlanta, Portland, and Houston with a wide selection of entertainment and convenience products, including electronics, videos, DVDs, games, specialty foods, magazines, books and CDs and over-the-counter items.