Alloy Raises Fourth Quarter Revenues and Earnings Guidance.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 29, 2002

Alloy, Inc. (Nasdaq:ALOY), a media, direct marketing and marketing services company targeting Generation Y, today raised financial guidance for its fiscal fourth quarter ending January 31, 2002.

Matt Diamond, Alloy's Chairman and Chief Executive Officer stated, "We are pleased to lift the financial guidance we provided in our third quarter earnings call. We are raising our fiscal 2001 fourth quarter merchandise revenue range to $46 million to $47 million and our fiscal 2001 fourth quarter sponsorship and advertising revenue range to $17 million to $18 million. We are also raising our expected range of earnings before income taxes, stock-based compensation, and amortization of goodwill and acquired intangible assets from $6.4 million to $6.6 million, to $6.6 million to $6.8 million."

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" 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: achieve full year pro forma profitability this fiscal year; 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; 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 these and other risk factors see the Risk Factors section of our annual report on Form 10-K and Form 10-K/A for the year ended January 31, 2001 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 required by law.