Net Perceptions Announces GroupLens for Active Channels Plus its Award-winning Recommendation Engine is Now Available for Windows NT.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 1, 1997--

Microsoft Channel Partners Now Able to Personalize Content to

Individual Subscribers

Broadening its role as the leading provider of personalization tools, Net Perceptions today announced GroupLens for Active Channels, delivering Microsoft's channel providers with an unsurpassed method for supplying the most relevant content to each user.

By accurately providing the most personally compelling content to each user, channel partners using GroupLens for Active Channels will strengthen their brands and prevent channel hopping.

Designed specifically to leverage the potential benefits of push technology, GroupLens for Active Channels gathers previously unavailable data from each Internet Explorer 4.0 user that views channel content. It then supplies channel providers with suggestions on appropriate additional content users would enjoy based on their preferences, as well as what content to stop sending.

By knowing exactly what information users would prefer to receive, channel providers are able to filter out unwanted content, saving bandwidth and customers' hard disk space. The more often the customer uses the push site, the more personalized the content becomes, increasing the customer's loyalty and use of the channel.

"GroupLens for Active Channels gives Microsoft's channel providers the power to deliver the most relevant content to their users by recommending channel content specifically tailored to each individual subscriber," said Kevin Unangst, product manager for Internet Explorer. "Microsoft has been quick to maximize the enormous advantages offered by push technology. Partnering with organizations who provide supporting products, such as Net Perceptions, is a further commitment to our channel providers."

Microsoft Internet Explorer 4.0 First Client-side Application to Fully Integrate with Net Perceptions GroupLens Recommendation Engine Version 2.1 Personalization Support

Microsoft's Internet Explorer 4.0 is the first client-side product on the market to closely integrate with GroupLens' server-side software. Microsoft's Internet Explorer 4.0, when coupled with GroupLens, speeds the registration process and allows online businesses to quickly begin personalizing content for each individual, while each individual maintains control over their privacy. Any site using GroupLens will be able to automatically accept demographic information contained in not only in Microsoft's Internet Explorer 4.0, but in any P3 compliant client.

P3, the "Platform for Privacy Preferences" is the official World Wide Web standard for privacy and profiling on the Internet. Net Perceptions, Inc. began accelerating industry acceptance of P3 by showing leadership in support of the Open Profiling Standard proposal to the P3 group and by launching the industry's first OPS-ready product at the Summer Internet World Show in July of this year.

The GroupLens Recommendation Engine 2.1 serves as the vehicle for utilizing personal profiles to better enhance a user's Web experience with the greatest measure of privacy. At the same time, Net Perceptions also announced its partnership with VeriSign, Inc. to allow authenticated Digital IDs to be recognized by the GroupLens Recommendation Engine. Microsoft was an early contributor to and backer of the Platform for Privacy Preferences (P3) architecture, and is now delivering support for P3 in Internet Explorer 4.0. This open standard is now supported by more than 100 companies.

GroupLens Recommendation Engine now runs on Windows NT 

Net Perceptions also announced the GroupLens Recommendation Engine for Windows NT, which includes a new ActiveX API. This offers sites with NT servers the enormous benefits associated with personalization engine technology in a package that cleanly integrates into the Microsoft environment.

"The announcement of GroupLens for the Windows NT server platform combines the strength of the NT platform with the versatility of a recommendation engine, adding a wider spectrum of opportunity to a growing number of sites," said Unangst.

"These announcements represent a direction we have been moving in for several months," said Steven Snyder, president of Net Perceptions. "Having long been a proponent of making it easy for users to get the content they want, we applaud Microsoft for establishing standards that support development and generate the huge momentum surrounding Active Channels in Internet Explorer 4.0. These two announcements from Net Perceptions echo that support."

Snyder went on to say, "Net Perceptions has always been tightly integrated with Microsoft solutions, initially supporting Microsoft SQL Server, and now Internet Explorer 4.0, ActiveX and Windows NT. We will also be integrating with the rich services offered by Site Server to provide our customers a powerful, integrated solution." GroupLens for Active Channels and the NT version are shipping in October. Interested parties should contact Net Perceptions at 800/466-0711.

About The GroupLens Recommendation Engine

The GroupLens Recommendation Engine, recently awarded "Best of Class" at the Internet Commerce Expo '97 and coolest product at Web Innovations, is a vital part of any customer oriented online business. Working behind the scenes, GroupLens helps online businesses foster 1-to-1 customer relationships by tailoring Web sites to deliver specific and meaningful content based on the preferences of each user.

The leading product for high quality implementations, GroupLens' technically superior approach harnesses the collective knowledge of a site's customers to make predictions for each individual. It learns more and more about each customer over time, resulting in increasingly valuable personalized service.

An industrial strength tool designed specifically for the needs of high-volume, commercial web sites, GroupLens integrates seamlessly into any online business. It features an open distributed architecture and clear, well-documented APIs.

The product's high performance, speed and scalability are unparalleled, delivering millions of transactions with exceptionally high throughput. This allows Net Perceptions' customers, some of the largest and most used online businesses today, serve thousands of their customers simultaneously, with response time in the milliseconds. GroupLens' patent-pending Adaptive Prediction technology lets sites generate the highest quality recommendations.

About Net Perceptions

Net Perceptions, Inc., the leading developer of personalization tools, was incorporated in July 1996. Founders of Net Perceptions include the original team of University of Minnesota researchers who pioneered the concepts and applications of collaborative filtering with the GroupLens project and lead programmers from supercomputer maker, Cray Research .

Customers who have selected Net Perceptions' technology for 1-to-1 marketing include such market leaders as Amazon.com, E!Online, iVillage, N2K, Planet Direct, the SABRE Group, Spree.com and Starwave. Net Perceptions has received financial backing from Hummer Winblad, St. Paul Venture Capital Inc., and Paul Allen's investment group, Vulcan Ventures, Inc. Net Perceptions can be reached by calling 800/466-0711 or on the World Wide Web at www.netperceptions.com

About Microsoft

Founded in 1975, Microsoft (NASDAQ:MSFT) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use; each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft and Active Channel are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

CONTACT: Alexander Communications, Inc.

Matt Vandeberg, 415/923-1660

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