Alloy Acquires Youthstream's Generation-Y Targeted Media and Marketing Services Assets.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 6, 2002

Alloy, Inc. (Nasdaq:ALOY), a Generation Y-focused media, direct marketing and marketing services company, today announced that it has acquired substantially all of Youthstream Media Networks, Inc.'s high school and college targeted marketing and media assets.

This includes over 20,000 out-of-home display media boards in high schools and on college campuses, media placement capabilities in college and high school newspapers, and event marketing services and contracts. Alloy paid $7 million in cash to complete the acquisition.

Matt Diamond, Alloy's Chairman and Chief Executive Officer stated, "The acquired assets add to our already strong out-of-home media, media placement and event marketing business units and will be fully integrated into 360 Youth's current media and marketing services offerings. This strategic acquisition further strengthens 360 Youth's leadership position in assisting the nation's premier brands in reaching the dynamic youth market."

Mr. Diamond concluded, "After a period of integration and satisfying Youthstream's existing contractual obligations, we expect the addition of its high school and college targeted media assets to increase our fiscal 2003 sponsorship revenues by $6 million to $7 million and add approximately $1 million in incremental EBITDA."

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 monetizes 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 (www.alloy.com) and click on "Investor Info". Information on 360 Youth's marketing services can be found at www.360youth.com.

This announcement may contain forward-looking statements that involve risks and uncertainties, including statements regarding our expectations and beliefs regarding our future results or performance. When used in this announcement, the words "anticipate", "believe", "estimate", "expect", "expectation", "project" and "intend" and similar expressions are intended to identify such forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements. Additionally, you should not consider past results to be an indication of our future performance. Factors that might cause or contribute to such differences include, among others, our ability to: increase revenues, generate high margin sponsorship and multiple revenue streams, increase visitors to our Web sites (www.alloy.com, www.ccs.com, and www.danscomp.com) and build customer loyalty; develop our sales and marketing teams and capitalize on these efforts, develop commercial relationships with advertisers and the continued resilience in advertising spending to reach the teen market; manage the risks and challenges associated with integrating newly acquired businesses; and identify and take advantage of strategic, synergistic acquisitions and other revenue opportunities. Other relevant factors include, without limitation: our competition; seasonal sales fluctuations; the uncertain economic and political climate in the United States and throughout the rest of the world and the potential that such climate may deteriorate further; and general economic conditions. For a discussion of certain of the foregoing factors and other risk factors see the "Risk Factors That May Affect Future Results" sections included in our annual report on Form 10-K for the year ended January 31, 2002 and in our quarterly report on Form 10-Q for the period ended April 30, 2002, both of which are on file with the Securities and Exchange Commission. We do not intend to update any of the forward-looking statements after the date of this announcement to conform these statements to actual results or to changes in management's expectations, except as may be required by law.