CMGI Clarifies Strong Cash Position, Reaffirms Path for Growth and Profitability.

Business/Technology Editors

ANDOVER, Mass.--(BUSINESS WIRE)--Oct. 6, 2000

CMGI Reiterates it Has No Plans to Sell Shares in its NaviSite and

Engage Operating Subsidiaries

CMGI, Inc. (Nasdaq:CMGI), in response to contradictory reports regarding the Company's cash position, today clarified its strong liquidity position. On September 21, 2000, CMGI issued its fourth quarter earnings for the fiscal year ended July 31, 2000. As reported, CMGI's consolidated cash position at July 31, 2000 was $654.2 million, supported by available-for-sale securities of $1.6 billion. Available-for-sale securities primarily consists of common stock investments carried at fair market value based upon quoted market prices. The majority of these securities can be sold at any time and have frequently been used by CMGI as a source of cash to support its rapid growth and continuing operations over the past several years.

On September 21, 2000, CMGI also reported that its operating cash burn rate, or the amount of cash spent to support continuing operations of subsidiaries that are funded by CMGI, is expected to total approximately $63 million per month through November 2000. Management anticipates that operating cash burn rate will decline significantly over the next six months due to reduced expenses, realized synergies and efficiencies within its operating companies, and intra-company mergers. Management also expects to spend approximately $10 million per month for the foreseeable future on strategic investment activities through its affiliated venture capital arm, CMGI @Ventures.

"At our current cash burn rate, which we plan to reduce over the next six months, we currently have enough cash and cash equivalents to support our ongoing operations and investment requirements for approximately two years," stated David Wetherell, CMGI's Chairman and CEO. "This does not take into account the potential for future liquidity events within CMGI @Ventures' holdings, which can add significantly to our sources of available cash. Even through the recent softening of the IPO market, we have benefited from liquidity events such as the sale of eGroups to Yahoo!, and the sale of Half.com to eBay. In addition, the revenues from our majority-owned subsidiaries are steadily growing - on average more than 20% quarter over quarter for the past five quarters - and we have announced that five of our six segments are expected to be profitable on an EBITDA basis by the end of this fiscal year."

The Company's available-for-sale securities do not include shares of CMGI's publicly-held operating subsidiaries, Engage and NaviSite. In the future, the Company will also have access to securities of other companies that are not currently considered "available-for-sale" due to effective lock-up provisions. As of October 5, 2000, CMGI's total public holdings were valued at approximately $4.2 billion.

About CMGI and CMGI @Ventures

CMGI, Inc. (Nasdaq:CMGI), a leading global Internet operating and development company, represents a network of 70 established and emerging companies, including both CMGI operating businesses and synergistic investments made through its venture capital affiliate, CMGI @Ventures. Companies in the CMGI network span a range of vertical market segments including search and portals; infrastructure and enabling technologies; e-business and fulfillment; interactive marketing; and Internet professional services. CMGI leverages the technologies, content and market reach of its extended network to foster rapid growth and industry leadership across the Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI.

CMGI's majority-owned operating companies include Engage (Nasdaq:ENGA), NaviSite (Nasdaq:NAVI), 1stUp.com, Activate, AdForce, AltaVista, CMGion, CMGI Solutions, Equilibrium, ExchangePath, iCAST, MyWay.com, NaviPath, SalesLink, uBid.com, and yesmail.com. CMGI @Ventures has ownership interests in 54 companies, including Lycos, Inc. (Nasdaq:LCOS), Critical Path (Nasdaq:CPTH), MotherNature.com (Nasdaq:MTHR), Ventro (Nasdaq:VNTR) and Vicinity (Nasdaq:VCNT).

CMGI's corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810. CMGI @Ventures has offices there, as well as at 3000 Alpine Road, Menlo Park, CA 94028. For additional information, see http://www.cmgi.com and http://www.ventures.com.

This release contains forward-looking statements which address a variety of subjects including, for example, CMGI's expected cash burn rate, CMGI's expected ability to reduce its cash burn rate, the sufficiency of CMGI's cash and cash equivalents to support future operations and investment requirements, expected liquidity events in the future, and the expected operating results and profitability of CMGI's segments. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: CMGI's success is dependent upon its ability to integrate its operating companies in accordance with its segment strategy; CMGI's success, including its ability to decrease its cash burn rate, improve its cash position and revenue run rate and reach profitability, depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of CMGI's and its operating companies' web sites and the Internet in general; CMGI may experience difficulties integrating technologies, operations and personnel of recent acquisitions; and increased competition and technological changes in the markets in which CMGI competes. For a detailed discussion of cautionary statements that may affect CMGI's future results of operations and financial results, please refer to CMGI's filings with the Securities and Exchange Commission, including CMGI's most recent Quarterly Report on Form 10-Q.