Cyberian Outpost and Discover Card Unite to Help Consumers Save on the Web and to Ring in 1999.

KENT, CT--(BUSINESS WIRE)--Dec. 30, 1998--Cyberian Outpost, Inc. (NASDAQ: COOL), a leading global Internet-only retailer of computer hardware, software and peripheral products from its online store Outpost.com http://www.outpost.com today announced an agreement with Discover Card(R) that includes the opportunity to broadcast messages during the New Years holiday season on the top sign at One Times Square in New York City currently occupied by Discover Card.

This agreement continues the aggressive marketing efforts by Cyberian Outpost to build brand awareness and follows its recent daring national advertising campaign that generated substantial interest from both consumers and the media.

In addition, Outpost.com is included as one of the featured merchant's on Discover ShopCenter(sm), a shopping link service that offers special savings and promotions to Discover Cardmembers. Outpost.com receives direct links from Discover ShopCenter and co-branded banners on various sites around the Web. In addition, the agreement provides that Outpost.com's messages appear on One Times Square in New York City for four weeks twice an hour starting from December 14, 1998 through January 14, 1999.

"We're thrilled to offer special benefits to Discover Card's more than 46 million Cardmembers as part of our aggressive branding strategy," said Darryl Peck, President and CEO of Cyberian Outpost. "In addition, we look forward to being part of the festivities as millions of holiday revelers view Times Square this New Year's Eve to see the famed ball drop."

About Cyberian Outpost

A leader in global e-commerce since 1995, Cyberian Outpost, operates an Internet only superstore for computer products from its Web site Outpost.com (http://www.outpost.com/), 24 hours a day, seven days a week. Outpost.com provides consumers and small office purchasers of computer products superior selection, quick and easy search capabilities, and product information on over 140,000 hardware, software, and peripheral products at competitive prices. With a safe and secure credit card payment system, and fast and direct international shipping, Cyberian Outpost offers exceptional value and service to its customers worldwide.

About Discover Financial Services

Discover Financial Services, a business unit of Morgan Stanley Dean Witter & Co., operates the Discover Card brands with more than 46 million card members and the Discover/NOVUS(R) Network. The Network is the largest independent credit card network in the United States with more than three million merchants and cash access locations.