Alloy Online Announces Winner of School Invasion Contest; North Andover Middle School Wins `AlloyDay' off with Epic Records Group artist, Nine Days; Students to Stage Alloy Fashion Show.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 3, 2000

North Andover (Mass.) Middle School teens found a way to skip class that even got the teachers' and principal's seal of approval.

They turned to Alloy Online (www.alloy.com) (NASDAQ:ALOY) for help. The school's students won the leading teen Internet destination's "Alloy Invasion" contest, which means the May 30 curriculum will feature a day of festivities including a musical performance by Epic Records Group artist, "Nine Days," and a fashion show where students will walk the runway sporting the latest Alloy gear.

"We are thrilled with the overwhelming response we've had to this contest," said Matt Diamond, CEO and co-founder of Alloy Online. " We look forward to providing these students with an exciting event in return for their incredible enthusiasm. With such a great reaction to our first `Vote For Your School' promotion we plan to make this an ongoing feature at our Web site."

"Nine Days" will perform songs from their new album, The Madding Crowd, including the hit single "Absolutely (Story of a Girl)," which can be seen on both MTV and VH-1. "The timing is perfect for Nine Days to be associated with this fun-filled celebration", said Lori Lambert, Vice President Marketing and Development for the Epic Records Group. "The band is great live and they will provide the perfect music component for this exciting promotion."

The contest, which ran for four weeks, encouraged Alloy.com visitors to nominate their school and generated responses from more than 176,000 teens and 12,618 schools across the United States. North Andover Middle School, with a little over 1,000 students, won the contest with nearly 16,000 votes. This was due to the efforts of three students who urged the entire student body to vote by hanging banners throughout the halls, creating an e-mail chain and announcing up to the minute tabulations over the loudspeaker. Members of the faculty helped out by allowing students to spend extra time in the computer lab.

"We are very proud and extremely excited to have won the National Alloy contest," said Lou Reste, Principal of North Andover Middle School. "This was a student driven idea and effort from the outset. It certainly illustrates the enthusiasm, tenacity and school spirit that the students have here at NAMS."

In addition to the concert and fashion show, the student body will be setting up booths to encourage student participation in a variety of activities. Alloy and Gateway (TM) have teamed up to donate computers to the school. Alloy will also be giving away exciting prize packages in conjunction with corporations who have all contributed generously to this event, such as Nokia, Tiger Electronics, Dan Electro Guitars, HMV Records and Nintendo. Every student will also receive a goodie bag filled with lots of `freebies', compliments of Alloy and partners such as Cover Girl, Sanrio (makers of the popular "Hello Kitty" products) and Bounty SCA.

About Alloy Online

Alloy Online (NASDAQ:ALOY) is a leading Web site and direct marketer providing community, content, commerce and entertainment to the 70 million teens known as Generation Y. In addition to its unique convergent media model that includes the Alloy.com Web site (www.alloy.com), its e-zine and Alloy print catalog, Alloy has further expanded its media presence through the establishment of Alloy Productions, AlloyBooks and Alloy Entertainment. With a database in excess of 3.5 million and reaching over 10 million teens per month, Alloy offers a unique blend of services which enable teens to shop, interact and explore content on a variety of topics including entertainment, sports, fashion, advice and auctions. Alloy has developed a wide-range of partnerships with premier companies including Kodak, Reebok, Sony, Clairol, Johnson & Johnson, and Penguin Putnam, Inc. On April 14, 2000, Liberty Digital, Inc., an Internet and interactive television investment company controlled by the Liberty Media Group unit of AT&T, acquired a 16.7% stake in Alloy Online. For further information regarding Alloy Online, please visit the company's Web site (www.alloy.com) and click on Investor Info or call the investor information line at 877-ALLOY-IR.