Rare Medium Asia Pacific Launches Fuji Xerox E-store.

Business Editors & High-Tech Writers

NEW YORK & SYDNEY, Australia--(BUSINESS WIRE)--Oct. 10, 2000

Rare Medium (Nasdaq:RRRR), a leading Internet strategy and solutions company, has developed and launched a revolutionary new Web site for Fuji Xerox Australia's Document Supplies Division to create a new online store for consumers and B2B customers.

The site enables customers and the general public to purchase a wide range of papers, supplies and print consumables such as transparencies and toner cartridges over the Internet in a sophisticated, interactive and user-friendly environment.

Through direct integration into Fuji Xerox's back office systems, Rare Medium brings to the Internet a real-time ordering solution with high levels of personalization. Customers are able to customize their ordering process as well as receive information on Fuji Xerox's office supply products.

The core system uses IBM's WebSphere(TM) product, a Java(TM)-based application server, providing superior scalability and robustness. A part of the IBM Web Integrator initiative, Rare Medium provides integrated solutions utilizing the full range of IBM technologies.

"Fuji Xerox Australia chose to work with Rare Medium due to its superior understanding of the Internet environment and its competency in the two key areas of Web design and technical integration. Most Web companies in Australia simply do not have strengths in both of these areas," said Terry Gatward, manager, e-business office, Fuji Xerox Australia. "We were particularly impressed with Rare Medium's focus on usability and its expertise in defining the site's information architecture."

Rare Medium also provided essential strategic consulting services for aspects of Fuji Xerox' e-commerce initiative.

"Using our client-focused methodology, we obtained a thorough understanding of Fuji Xerox' business challenge, its Web-based retail vision and the business's current capabilities, allowing us to develop a strategic plan for extending Fuji Xerox Australia's brand and business model to the Web," said Daniel J. Roddy, senior vice president of Rare Medium Asia Pacific "We were able to meet the initial project objectives through our approach of delineating every aspect of the project with a strategic, time-sensitive action plan designed to deliver high value results from the outset."

Rare Medium Asia Pacific is a wholly-owned subsidiary of Rare Medium Group Inc. Rare Medium Sydney's clients are primarily large and medium-sized corporations serviced by a professional team of about 40 employees in Pyrmont, Sydney.

About Rare Medium Group, Inc.

Rare Medium provides end-to-end Internet services and invests in next generation Internet companies. Rare Medium's Internet services include development and authoring of business plans and strategies; strategic, creative and technological consulting for Web initiatives; on-line brand development and management; development of content for broadband and wireless applications; and launch of on-line commerce trading exchanges. Rare Medium incubates, finances and manages private companies and also makes strategic investments in independently managed companies that it believes possess superior Internet-focused business models. Rare Medium leverages its Internet Services expertise to increase the overall success of the companies in its investment portfolio. For more information, visit http://www.raremedium.com.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect Rare Medium Group Inc., and its subsidiaries' business and prospects and cause actual results to differ materially from these forward-looking statements. Among the factors that could cause actual results to differ are Rare Medium's limited operating history; competition; low barriers to entry; reliance on strategic relationships; rapid technological changes; inability to complete transactions on favorable terms and those risks discussed in the company's filings with the SEC.