CyberShop Inks Merchant Agreement for Microsoft's MSN Shopping.

egift.com and electronics.net Sites Secure Anchor and Tenant

Positions In E-Commerce Alliance on MSN 

CyberShop International, Inc. (Nasdaq: CYSP), today announced that it has signed an agreement with Microsoft's (Nasdaq: MSFT) MSN Shopping to establish anchor and tenant positions for www.egift.com, the ultimate online gift-giving site, and www.electronics.net, "the biggest electronics store everywhere," on the MSN Shopping channel, http://shopping.msn.com.

The agreement secures egift a highly visible anchor position in the Gifts and Gadgets department on the MSN Shopping channel and electronics.net, a tenant position in the Electronics department, and provides both sites direct access to the broad reach of MSN. In addition, both sites will have text placements, special promotions and advertising banners throughout The Microsoft Network of sites. This places egift and electronics.net among other prominent online retailers including Amazon.com (Nasdaq: AMZN), Toys R Us (NYSE: TOYS), OfficeMax Online (NYSE: OMX), Cyberian Outpost (Nasdaq: COOL), K-Tel Express (Nasdaq: KTEL) and Music Boulevard (Nasdaq: NTKI) who have established similar placements in the MSN Shopping channel.

"The timing couldn't be better for us to expand our relationship with MSN," said Chairman and CEO Jeff Tauber. "We were actively looking to develop additional marketing deals for our new sites and given MSN's expanded Shopping channel and the upcoming holiday season, we felt there was a great opportunity. Whether you're looking for Furby or other hard-to-find, unique gifts, this relationship will give MSN customers direct access to our great assortment of over 500 gifts at egift.com. Additionally, MSN customers can shop at electronics.net for the hottest electronics brands including JVC, Panasonic, AIWA, Bose and RCA at the best prices."

"CyberShop is looking to expand their customer base, building a presence with their two new online retail sites for Gifts and Electronics," added Deborah Levinger, Microsoft's Business Manager. "The merchandising and targeting capabilities of MSN Shopping, combined with the broad reach of MSN will help CyberShop achieve their marketing and revenue goals."

About CyberShop

CyberShop, a leading online retailer, can be found on the World Wide Web at http://www.cybershop.com and on America Online in their Shopping channel or by using keyword 'cybershop.' egift can be found on the World Wide Web at http://www.egift.com and on America Online, on their Shopping Channel and in their 'Quick Gifts' area or by using the keyword 'egift.' electronics.net can be found on the World Wide Web at http://www.electronics.net.