Business 2.0 Announces 43 Percent Growth in Rate Base of Paid Circulation; Success Fueled By Brand's Appeal To Transformer Audience.

Business Editors

BRISBANE, Calif.--(BUSINESS WIRE)--April 10, 2000

If you are a "transformer," redefining business in the New Economy, what do you read? Business 2.0. And, to meet that demand, Imagine Media's Business Division today announced it would increase its rate base from 210,000 to 300,000 effective with the August 2000 issue. The new rate base represents a 43 percent growth over the publication's previous paid rate base of 210,000 reached in January 2000 and it's the fourth circulation increase since Business 2.0 first launched in July 1998.(a)

"The marked success and increased demand for the Business 2.0 brand among our core Transformer audience is proof that we are resonating with this growing demographic in a meaningful, lasting and credible way," said Michela O'Connor Abrams, president of Imagine Media's Business Division. "The numbers tell us that this group - comprised of individuals with the credibility and creativity to re-invent their companies for a New Economy - is hungry for the insight, ideas and views that we are committed to providing anytime, any place, anywhere and in any form."

The circulation of Business 2.0 is entirely paid, unlike other publications with "controlled" circulation figures that include free and promotional subscriptions as well.

The magazine attributes its most recent rise in paid circulation to factors that include a significant increase in newsstand sales, an exceedingly high rate of subscriber renewals and the effectiveness of direct mail campaigns. As an illustration, the publication's most recent direct mail campaign experienced a 79% increase in response over the prior direct mail initiative.

"The newsstand sales, the rate of subscriber renewals and the response to direct mail all exceeded our expectations and targets," continued O'Connor Abrams. "At a minimum, we expect the current rate of growth to continue - we have forecast paid circulation to be over 350,000 by early 2001."

The circulation figures in themselves do not tell the entire Business 2.0 success story. An emerging new segment of the paid circulation base is comprised of "sponsored" subscriptions. Sponsored subscriptions usually reflect the enthusiasm of a company's top management for a publication - enthusiasm evidenced by the company's purchase of subscriptions for clients, customers and employees.

In addition, paid circulation of Business 2.0 is reflected in a new sector, which also is on the rise. Effective with the August issue, the publication will have over 12,000 copies in upscale hotel rooms/locations throughout the country.

About Business 2.0

Business 2.0 was launched in July 1998 by Imagine Media, Inc., the U.S. subsidiary of The Future Network. Since its inception, circulation at Business 2.0 has grown from 125,000 to a rate base of 210,000 as of January 2000. With the creation of the new operating unit, Imagine Media now has three publishing divisions: Business, Computing and Entertainment. All three enjoyed significant growth in 1999 and are forecasting further strong growth for 2000. Within its first year, Business 2.0 won seven top magazine awards: three 1999 Maggie Awards from Western Publications Association, including Best Overall and new Consumer Publication, and Best Special Interest Consumer Publication. Business 2.0 was also honored as the Best Newcomer by the Computer Press Association and has recently won the Folio: Editorial Excellence Award and two Silver Ozzies for magazine design. This year, the publication has already been named a 2000 National Magazine Awards finalist by the American Society of Magazine Editors (ASME) in the category of General Excellence, and a 2000 Maggie Award finalist in the categories of Best Series of Articles and Best Table of Contents.

About Imagine Media, Inc.

Imagine Media (www.imaginemedia.com) is one of America's fastest-growing publishers of magazines and Websites. Its success is based on the "passion" strategy: creating products that excite tech-savvy consumers. It recently merged into The Future Network plc (www.futurenet.com) the media company founded by Imagine's CEO Chris Anderson in 1985. Based in the San Francisco Bay Area, Imagine Media's publications sell in excess of 1.8 million copies per month. Its market-leading titles include: Business 2.0, Games Business, MacAddict, Maximum PC, Next Generation, Official Sega Dreamcast Magazine, PC Accelerator, PC Gamer, PSM: 100% Independent PlayStation Magazine, and on the Web: the DailyRadar.com, MacDaily Network, the MaximumPC Network. The Future Network (London:FNET), parent of Imagine Media, Inc., has over 1400 employees, 100 monthly magazines, and operations in the United States, the United Kingdom, France, Germany, and Italy.

(a) Business 2.0 has been BPA audited since 1998.