Alloy Enlists the Spending Power of United States Armed Forces to Give Advertisers Edge in Stalled Economy.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 7, 2003

Advertising Buys Increase by 53-percent

across Alloy's Military Division

Armed Forces Communications (AFC), the military division of 360 Youth, an Alloy Inc. Company (Nasdaq:ALOY), experienced a 53-percent increase in advertising spending for the first four months (February through May) of its fiscal year versus the same period last year. AFC, which represents more than 90-percent of all national advertising in military base newspapers, believes the recent war in Iraq, coupled with a sluggish economy, has retailers and service providers looking to the armed forces and their families to drive incremental sales. In the month of May alone, AFC experienced a 126% increase in ad spending compared to the same period last year. Leaders in the marketing trend include automotive, retail and airline businesses.

AFC has been helping advertisers for more than 15 years reach the 7.3 million people who currently make up the United States military community. The 1991 Gulf War in Iraq was the last time military media buys reached these levels.

"Personnel in the armed forces largely consist of young adults with families, and make up a huge, easily identifiable group with consistent income," said Andy Sawyer, Executive VP of 360 Youth and AFC. "The importance of reaching this community naturally increases during times of war and unrest when the needs of these service men and women and their families may change due to base changes, reassignment, and calls to duty." Adding, "During these intensive times, the necessity to be kept informed daily also makes the newspapers a must-read for personnel.

With an average annual salary of approximately $33,927 (including pay and allowances), U.S. service men and women accounted for $92 billion in pay and allowances last year alone, according to research compiled by Armed Forces Communications(1). In addition, eighty six-percent of these service people read their base newspapers on a regular basis, nearly all have a TV in their household, 76-percent subscribe to cable, and nearly half report using the Internet for one or more hours a day. To meet the requirements of this media-savvy group, AFC offers more military media and promotions vehicles than any other company.

"Kawasaki sees the military market as very important to our success. The men and women of the armed forces' demographic and psychographic profiles are an ideal match for our products", said Mark Homchick, National Marketing Manager, Kawasaki Motors Corp., U.S.A. "Like most motorcycle, ATV and personal watercraft riders, they are a spirited bunch that likes to enjoy life to the fullest, making them a perfect match for Kawasaki's exciting, high performance products and we're proud to have them aboard our vehicles. The military market, with their record of steady employment and stability, offer us an excellent and reliable customer base. AFC's services enable us to reach this important market directly, and seamlessly."

"The men and women of our military are a force...a buying force to be reckoned with," said Sawyer. "We not only have the ability to reach this vast and important community, we know how to do it effectively."

About 360 Youth

360 Youth is the media and marketing arm of Alloy, Inc. (Nasdaq:ALOY - News). As part of Alloy's Media & Marketing Division, 360 Youth integrates the assets and experience of the largest and strongest college and teen marketing companies including the 360 Youth business of Marketsource, CASS Communications, Alloy, MarketPlace Media (All Campus Media & Armed Forces Communications), YouthStream, and others to provide sales and marketing solutions targeting young adults. 360 Youth enables Fortune 500 companies to reach more than 25 million Generation Y consumers each month through a comprehensive mix of programs incorporating proprietary media assets such as school based media boards, high school and college newspapers, Web sites, magazines, and catalogs. For more information on 360 Youth, an Alloy Inc. company, please visit www.360youth.com. For more information on Alloy, Inc., please visit www.alloyinc.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 and click on "Investor Info."