CoolSavings Announces 33.6% Gain in Cust. Response

Magnify.com, a leading provider of services that predict customer preferences and intentions in real time, and coolsavings.com inc, a leading provider of e-marketing services used by online and offline advertisers to build one-to-one customer relationships, announced that in a recent pilot program, CoolSavings members who received targeted savings incentives based on Magnify.com's Intelligent Customer Profile service responded 33.6 percent more than a control group. As a result, CoolSavings has signed a one-year contract to employ Magnify.com's service to help further personalize various promotional incentive solutions that the company offers to its more than 9.4 million registered members.

Data Analysis for Targeted Recommendations and Increased Sales

CoolSavings incorporated Magnify.com's Intelligent Customer Profile service into the CoolSavings architecture to analyze vast amounts of data to provide targeted promotional incentive recommendations for a test group of CoolSavings' members. During the program, CoolSavings saw an impressive 33.6 percent higher conversion response to the personalized offers recommended by Magnify.com's service than those members who did not receive offers based on the service.

"The Magnify model helps to provide additional personalization capabilities for CoolSavings' promotional incentive infrastructure by incorporating another level of sophisticated data-mining that's able to evaluate in-depth information about the consumer experience," said Steven M. Golden, chairman and CEO of CoolSavings. "Based on the tremendous response rate we experienced in our preliminary pilot program, CoolSavings plans to use Magnify.com's service for the next year to help enhance personalized e-marketing programs for our advertisers that target the right offers to the right recipients and ultimately drive increased customer retention and greater ROI."

"Magnify's Intelligent Customer Profile service enables CoolSavings to reach a new level of personalization for its e-mails services and Web site by dynamically targeting content for each individual member," said Tony Glaves, president of Magnify.com. "Our service creates personalized target lists by evaluating CoolSavings' more than 9.4 million members in their database according to their likelihood to respond to each available offer. When you can more precisely target the right people with the right offer, response rates and sales increase."

Benefits for Everyone

Magnify's Intelligent Customer Profile service brings benefits for CoolSavings and its two primary audiences: its advertisers and its members. The advertisers benefit because their promotional offers go to those CoolSavings members who are most likely to be interested in what they are offering, resulting in more efficient e-marketing programs. CoolSavings' members benefit by receiving offers that best meet their demographics, shopping habits and interests.

"Magnify's service helps CoolSavings in two ways: it recommends which customers to send specific offers, so advertisers reach their best targets, and it evaluates the kinds of offers each customer should receive, so customers get what they want," noted Golden. "It's a win-win solution for both advertisers and consumers."

About CoolSavings

Launched in February 1997, CoolSavings is a provider of e-marketing solutions used by offline and online advertisers to build one-to-one customer relationships. The Company's advertisers include national and local brick-and-mortar retailers, online merchants, consumer packaged goods manufacturers and leading service providers. CoolSavings has built a total infrastructure solution that delivers multiple incentive and promotional strategies, including targeted coupons and e-mail, loyalty points, category newsletters, rebates, savings notices, samples, gift certificates and trial offers. The Company is committed to providing retailers with effective online marketing solutions that foster personal relationships with consumers. Today, with more than 9.4 million registered members and 7.9 million registered households,(1) CoolSavings is rated the No. 1 coupon Web site and the No. 1 incentive Web site in the July 2000 Media Metrix report. The company is also rated the No. 1 coupon Web site in a NPD Group March 2000 survey. CoolSavings is located in Chicago. For more information, call 312-224-5000 or visit the company's Web site at www.coolsavings.com.

(1) More than one person in a household can be registered as a CoolSavings member.

About Magnify.com

Magnify.com is a leading provider of services that predict customer preferences and intentions in real time. Its Intelligent Customer Profile service solves e-business site-specific business problems through an analysis of terabytes of customers' historical data combined with real-time clickstream data. Magnify's experts and innovative, next-generation technology then combine to accurately predict customers' preferences and intentions and give e-businesses real-time recommendations.

The service, which deploys in weeks as opposed to months, provides targeted, real-time recommendations and behavioral predictions based on individuals - not on generalized groups of people. Companies then may take those recommendations and predictions and apply them to their most appropriate platforms, including e-mail, e-commerce, advertisements, list selections, etc. The result is increased sales, profitability and overall customer loyalty.

Based in Mountain View, Calif., Magnify.com is a business unit of Magnify Inc. Founded in 1995 by company Chairman Robert Grossman, Ph.D., Magnify Inc is a privately-held, venture-backed company headquartered in Chicago. The company serves a range of Fortune 500 and Internet clients, including Allstate Insurance, U.S. Department of Defense, CoolSavings and Yesmail. For more information about Magnify.com, call 650-528-5100, e-mail info@magnify.com, or visit the company's Web site at www.magnify.com.

Contact Gibson Communications for Magnify, Glynis Gibson, 773-278-7700, glynis@gibsoncommunications.com or CoolSavings, Melissa Rabin, 312-224-5000, melissa@coolsavings.com.