Engage Media Announces New Incentive Programs That Enable Marketers to Drive Response and Brand Loyalty.

Business and High-Tech Editors

Jupiter Online Advertising Forum

NEW YORK--(BUSINESS WIRE)--Aug. 16, 2000

Relationships With Yclip and iQ.COM Allow Advertisers to Leverage

Online Incentive Programs to Achieve Marketing Objectives

Engage Media, a division of Engage, Inc. (Nasdaq: ENGA), today unveiled a new initiative to deliver seamlessly integrated online media and incentive programs, enabling advertisers to build customer loyalty and drive traffic to both Web sites and brick and mortar stores. These programs offer Engage Media's advertisers another opportunity to reach, retain and build solid relationships with their customers.

Engage Media will work with Yclip and iQ.COM(TM) to help merchants build relationships with online consumers. Through its alliance with Yclip, an Austin, Texas-based online incentives marketing infrastructure and information services company, Engage Media will enable virtual and traditional merchants to deliver discounted offers through its suite of online advertising solutions. With iQ.COM, the leading eMarketing infrastructure provider with publish once, distribute everywhere incentive and loyalty options, Engage will provide clients with the ability to increase customer retention though online incentive programs such as sweepstakes, digital coupons and surveys for both traditional and online advertisers.

"Engage Media's new incentive programs will provide advertisers with a great opportunity for cross-media marketing and the ability to integrate offline efforts with proven online advertising solutions," said Lyn Chitow Oakes, president, Engage Media. "The programs are designed to serve as the ultimate resource to help marketers reach and retain customers, and then continue to grow relationships with those customers."

By clicking on banner ads, consumers will be able to opt in to receive promotional offers at traditional, retail outlets. Then, when they make the purchase with their pre-registered credit card, the participating retail outlet will ensure they receive a rebate on their next credit card statement. These paperless coupon campaigns will run across both the Engage Media Advertising and Email Networks.

Jupiter Communications estimates that more than 68 percent of consumers who shop online complete their purchases at offline stores.(a) Therefore, the opportunity to reach and provide customers with online incentives to make offline purchases presents advertisers with the potential for highly successful, cross-media marketing campaigns. This type of offering is unique because it benefits both offline merchants and consumers. The alliance between Engage Media and Yclip marks the first time traditional, offline merchants will be able to track their online advertising expenditures and match this with offline transactional revenue, helping them justify their online advertising dollars. In addition, the growing number of people who turn to the Internet before making major purchases will benefit because they will not have to print and keep track of online coupons when they shop. Instead, the discounts will be credited directly to their credit card account. Consumers will also be able to view a record of their paperless coupons on the Yclip site.

"Engage Media's industry-leading profiling and optimization techniques combined with Yclip's couponing make it easier for consumers to take advantage of online discount offers," said Luis Gonzalez, chairman and chief executive officer of Yclip. "Since consumers no longer need to clip coupons from the paper or download them from the Internet, we're helping merchants turn consumer's credit cards into value cards."

Engage Media will utilize iQ.COM's Open Loyalty Platform(TM) to create, manage and track customers' incentive marketing campaigns in real time. The alliance extends Engage Media's ability to develop integrated campaigns that generate customer interaction for the offline and online worlds by providing marketers with the ability to implement sweepstakes, surveys, coupons and other types of promotional and incentive programs that are designed to spur both offline and online sales. Through these services, Engage Media customers will be able to increase their chances of customer acquisition and simultaneously, enhance customer relationships.

"This alliance will offer advertisers the tools necessary to create great incentive programs that will help attract and retain customers," said Richard Mandeberg, president and chief executive officer of iQ.COM. "Our relationship with Engage Media represents another step toward giving marketers what iQ.COM has always specialized in: creating top-notch solutions that provide the best means possible of increasing consumer response."

Yclip and iQ.COM are strongly committed to maintaining consumers' privacy online and never sell, exchange, release or disclose any customer information to third parties, giving consumers the opportunity to have an enhanced online experience without compromising their privacy.

Engage has always been at the forefront of respecting consumers' concerns regarding online privacy and is a member of several leading privacy organizations, including the Network Advertising Initiative and the Online Privacy Alliance, and has pledged to follow Fair Information Practices developed by the Federal Trade Commission to ensure that the division maintains its protection of consumer privacy. Engage will not receive any personally identifiable data from either company.

(a) As reported by Jupiter Communications, May 2000

About Engage Media

Engage Media, a division of Engage, provides the industry's broadest array of seamlessly integrated online media programs in order to help marketers achieve their branding, reach and response objectives. As the originators of optimization and profiling techniques, Engage Media can optimize within and between these multiple media programs, providing marketers with the unique ability to identify and target their audience and maximize their ROI. On a monthly basis, Engage Media reaches over 40 million unique visitors and delivers over 7 billion impressions for advertisers such as AltaVista and Office.com. Engage Media also delivers new revenue streams to leading publisher partners such as Entrepreneur Magazine and US News Online. Engage Media is headquartered in San Francisco, California. For more information on Engage Media, please visit http://www.engage.com/media or call [phone] or 877-U-ENGAGE.

About Engage(R)

Engage, Inc. (Nasdaq: ENGA), a results-oriented online marketing company and a majority owned operating company of CMGI, Inc., provides marketers with media, analysis and technology solutions. Engage's five business divisions, Engage AdKnowledge, Engage Business Media, Engage Enabling Technologies, Engage I/PRO, and Engage Media, combine innovative technology and marketing expertise to help online marketers maximize ROI. Based in Andover, Massachusetts, Engage has European headquarters in London and offices worldwide. For more information on Engage and its divisions please call 877-U-ENGAGE or visit http://www.engage.com.

Engage is a registered trademark of Engage, Inc. All other products and services mentioned are trademarks or service marks of their respective owners.

Engage Statement Under the Private Securities Litigation Reform

Act

This press release includes forward-looking information. All statements other than statements of historical fact, including without limitation, those with respect to Engage's objectives, plans and strategies set forth herein are forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties which could cause Engage's future results of operations to differ materially from those anticipated, and other risks detailed in Engage's 1999 Annual Report on Form 10-K and from time to time in Engage's other reports filed with the SEC.