AudioBase Unveils the New Sound of E-commerce -- macys.com, Gap Inc., iMotors.com, The Company Store and Match.com Use Audio to Help Convert Visitors Into Buyers.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--September 25, 2000

AudioBase announces groundbreaking deals and third-party research

at NRF.com press conference

To address a crucial issue faced by many e-businesses - conversion of visitors into buyers - AudioBase today launched its full service audio e-commerce solution. Industry leaders macys.com, Gap Inc., iMotors, The Company Store (a division of Hanover Direct) and Match.com are the first to embrace the AudioBase e-commerce offering. At a press briefing at NRF.com this morning, AudioBase demonstrated the technology and unveiled the new audio-powered macys.com site, which launches today.

"As a customer service focused company, we wanted to bring a high level of service support to certain key areas of our Web site," said Kent Anderson, president of macys.com. "The team at AudioBase recommended that we use audio cues to improve navigation and provide information difficult to deliver with text and images alone. We aim to increase the number of visitors who navigate our site successfully and become loyal customers." These audio enhancements can be heard today at macys.com.

The AudioBase Solution

A study by The Boston Consulting Group found that the e-commerce order conversion rate was a dismal 1.8 percent. AudioBase believes that intelligent use of sound and voice can help solve this problem. To demonstrate this, today AudioBase made public new research on audio-enabled e-commerce from two studies fielded in September 2000 by Vividence Corporation, the leading authority in Web experience evaluation. Highlights from the evaluation include:

-- In one study of a shopping cart prototype, respondents were over twice as
likely to succeed in the check-out process in the audio version (43.5% audio
versus 20% non-audio). Over three times as many users selected the correct
shipping method in the audio version (28%) versus the non-audio version (8.5%).


-- In another study with iMotors, in an initial review of the site, 25 percent
more respondents on the audio version understood the iMotors value choices -
financing, warranties, trade-in and lower priced pre-configured cars - versus
those on the non-audio version.

-- 65 percent of iMotors' respondents who heard audio agreed that audio makes
the selection and purchase process more convenient.

AudioBase is known for its seamless and efficient streaming audio solution, which allows Web sites to easily deploy audio within its existing content, without requiring the end-user to download or install any plug-ins. The company develops customized audio strategies that address clients' business goals and makes the end user's experience easier and more convenient. AudioBase's patent-pending secure streaming technology reaches 95 percent of all Internet users, over any connection, whether an advanced high-speed network link or a simple 28.8k modem.

The e-commerce world finally has a solution to its long-standing problem - shoppers who do not buy. "Millions of dollars are lost in potential online sales each year, because Internet purchases are abandoned due to users' confusion about the transaction process," explained AudioBase CEO and co-founder David Haynes. "Now, when shoppers visit Web sites using AudioBase technology, they hear a voice guiding them through the process. For the first time, buying over the Internet becomes as easy and convenient as shopping at the mall, but without the crowds."

"E-commerce sites have long been strangely silent," said Ben Elstein, research analyst for The Aberdeen Group. "By blending guiding voices and ambient sound with the shopping process, e-tailers can create a more meaningful and efficient shopping experience - resulting in more sales revenue."

AudioBase Benefits Hailed

iMotors is challenged with selling automobiles to people who may be unaccustomed to making major purchases online. In addition, since iMotors is the first and only company to sell cars without carrying inventory, customers are unfamiliar with this innovative method of selling. To address these issues, AudioBase is developing audio enhancements to clearly explain the choices available as shoppers move through the selection and order processes. Also, a talking tour guide will give visitors a friendly introduction to the site, and simplify the iMotors story.

"Delivering a broad selection of high-quality pre-owned vehicles online requires a strong customer-driven approach," said Beth VanStory, president of iMotors. "We think the multi-sensory communication approach AudioBase provides is much more effective than asking customers to read large amounts of text. By using a human voice to augment the written content, early research results suggest that customers comprehend the process more fully and move through it with greater ease. The result for iMotors is enhanced customer comfort and higher conversion rates."

About AudioBase

The AudioBase solution makes e-commerce businesses more profitable by using audio to drive the conversion of shoppers into buyers. Comprised of voice, music, and sound effects, audio adds a powerful third dimension to Web sites: it aids navigation, encourages interactivity, and fosters the confidence needed to complete transactions. AudioBase's ultra-light, patent-pending Java solution reaches over 95 percent of Internet users and does not require obtrusive plug-ins or cumbersome downloads, so the audio experience is completely seamless and transparent. Dynamically optimized for best quality, AudioBase delivers the best experience to every user. AudioBase creates and delivers end-to-end e-commerce and e-service solutions for industry leaders such as Discovery Health, iMotors, macys.com, Match.com, The Company Store (a division of Hanover Direct) and Gap Inc.

To learn more about AudioBase, please visit us at www.audiobase.com.

About Vividence

Vividence, the leading authority in Web Experience Evaluation, arms the customer-obsessed Web business with a powerful perspective: direct insight into the customer experience. Vividence findings and recommendations help Web businesses make improvements based on what really counts - the customer's true perspective. Vividence is backed by venture capitalists Kleiner Perkins Caufield & Byers, Sequoia Capital and Angel Investors L.P. Clients include more than 100 leading Web businesses such as Microsoft, Nordstrom.com, Alta Vista, Evite.com, drugstore.com, Compaq, Great Plains, Excite@Home, and Lycos.

To learn more about their services, please visit www.vividence.com

All results are based on an evaluation conducted by Vividence. Vividence tracked user activity and collected qualitative feedback as participants engaged in a series of real-life tasks on the sites.