CyberShop.com Launches Grove Street Ventures, Inc., an Internet Incubator.

Business/High-Tech Editors

JERSEY CITY, NJ--(BUSINESS WIRE)--Feb. 10, 2000

E-Commerce Pioneer Plans to Exit Two Existing E-tailing Sites to Focus Resources on Grove Street Ventures, Inc.

CyberShop.com, Inc. (Nasdaq National Market: &uot;CYSP&uot;) announced today that it will launch one of the first publicly traded Internet incubators through Grove Street Ventures, Inc. CyberShop.com will provide Grove Street Ventures with management resources, equipment, facilities and financial resources, including initial seed capital, to attract and develop start-up Internet companies. The operations of Tools for Living, a leading online and direct response company, that has provided CyberShop substantial revenues, will continue as a separate division within the Company. In order to dedicate sufficient resources to its Internet incubator operations, the Company will close the e-tailing sites CyberShop.com and electronics.net and sell the retail assets of these operations.

Grove Street Ventures aims to identify and invest in attractive early stage Internet companies and accelerate their development and product launches, while mitigating many of the pitfalls experienced by startups. The Company will make available its considerable resources including management, marketing, financing (including early stage seed capital), physical infrastructure, accounting and human resource systems, and its extensive experience in business development. In return for these resources and funding, Grove Street Ventures will receive a substantial equity position in identified companies. Grove Street Ventures has already been presented with a number of potential opportunities and is currently reviewing these proposals.

Through the launch of Grove Street Ventures and the closing of its two e-tailing sites, the Company believes that it has identified a long-term strategy for maximizing shareholder value. &uot;CyberShop was one of the first e-tailers to enter the market and helped pave the way for the e-commerce revolution,&uot; said Jeffrey Tauber, Chairman and CEO. &uot;Over the past few months, we have carefully analyzed the competitive e-tailing environment and the emerging Internet landscape. We were impressed by the success of firms such as CMGI (Nasdaq: CMGI) and Internet Capital Group (Nasdaq: ICGE) and believe our strengths could be leveraged similarly. After exploring a number of strategic alternatives, we saw the incredible opportunity in our new Internet incubator strategy and came to the conclusion that it is in the best interest of our shareholders to focus our business on this sector while retaining only our most profitable existing operations. Since the launch of CyberShop in a basement five years ago through the IPO process and beyond, we have been a pioneer in the e-commerce marketplace and have accumulated a wealth of expertise and relationships that will be an invaluable asset as we pursue our Internet incubator strategy. Our goal for Grove Street Ventures is to use this experience, along with our financial capital and management resources, to ensure the success of our network of companies.&uot;

Grove Street Ventures will be headquartered in CyberShop's offices in Jersey City, New Jersey, a state-of-the-art modular facility featuring the latest Internet systems and web technology. The location will also provide Grove Street Ventures with access to Jersey City's burgeoning Internet marketplace and the resources of Silicon Alley. Although Grove Street Ventures will have a national and global reach, it will be one of the few publicly traded companies with incubator activities centered in the greater Silicon Alley region.

Grove Street Ventures will be headed by Jeffrey Tauber who will serve as Chairman and Chief Executive Officer. The Company will retain a select number of the senior management of CyberShop and will be actively searching for leading Internet and investment banking talent to round out the Grove Street Ventures team. Grove Street Ventures is in the process of finalizing an advisory board comprised of outstanding Internet and business executives who will help in locating and reviewing proposed ventures, as well as lend their expertise in facilitating the growth of Grove Street Ventures' network of companies. Grove Street Ventures also intends to enter into strategic alliances with other entities that fund Internet companies, typically later stage and strategic investors, so that each may benefit from its respective strengths.

&uot;Grove Street Ventures will be uniquely positioned because of the broad partnerships we have developed from our experience with CyberShop,&uot; stated Tauber. &uot;We will be able to take advantage of the relationships we have forged with some of the web's leading players such as AOL, Microsoft (Nasdaq: MSFT) and Yahoo! (Nasdaq: YHOO) as well as many prominent Internet venture capital firms.&uot; In order to reflect its new focus, CyberShop.com, Inc anticipates changing its name and Nasdaq trading symbol in the near future. Grove Street Ventures' web site will be located at www.grovestreetventures.com.

Any questions from consumers should be directed to [e-mail] or [e-mail]

Safe Harbor 

This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, the Company's limited operating history, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, competition, risks associated with system development and operation risks, management of potential growth and risks of new business areas, and strategic alliances.