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Netcentives Launches Customized Email Marketing Programs

November 16, 2000

SAN FRANCISCO, Nov 16, 2000 /PRNewswire via COMTEX/ — Netcentives Inc. (Nasdaq: NCNT), a leading provider of technology and services for loyalty and direct marketing, today announced it has launched tailored email marketing programs for four clients: 3Com, Nine West Group, Sega, and Silicon Valley Bank. Each program includes highly personalized communications that enable these companies to effectively communicate with customers, employees and partners.

Netcentives foresaw the email marketing trend early on when it acquired Post Communications, Inc. in April 2000. Netcentives continues to grow this business line and added nine new email marketing clients during the third quarter of 2000. Netcentives' clients have had impressive results by using email to deepen key relationships. Clients have seen click-through rates over 30 percent and conversion rates greater than 10 percent. These results speak for themselves, and more and more smart marketers are looking to use email to improve loyalty. According to Jupiter Research, 65 percent of companies are spending between 1 and 5 percent of their marketing budgets on email marketing.

Netcentives chooses to work with companies that have multiple ways to touch customers: brick-and-mortar stores, Web sites and catalogs. The high level of adoption by multi-channel companies reflects Netcentives' strength in working with companies in long-term commitments and providing them with multiple loyalty solutions.

"We continue to expand our customer base of leading companies that are applying our powerful communication platform to drive long term loyalty," said West Shell III, chairman and CEO of Netcentives. "Netcentives is helping these brick-and-mortar brands sustain the growth of both online and offline customers by developing service-based relationships through email."

Sega is using email to communicate with its customers about new products and services, providing product tips and promoting concert tours sponsored by Sega. Soon, Sega will use email marketing to reach out to online and offline customers, engaging in the most comprehensive dialogue possible. Silicon Valley Bank began its email communication program in August, achieving great customer response. The company continues to work with Netcentives in developing plans to increase customer acquisition and retention in its far-reaching customer base.

3Com benefits from Netcentives' email marketing platform by sending a bi-weekly newsletter to approximately one million end users. The newsletters include customized information for various segments of interest, which include "Digital Home," "Small Business" and "Enterprise." Nine West Group is working with Netcentives to develop one-to-one communication about its Easy Spirit and Nine West brand customers. Customers receive targeted emails about new products and promotions, encouraging repeat purchases and ongoing loyalty.

Netcentives' email marketing division provides the marketing strategy, program design, production and technology required to enable companies to communicate with their customers on a personal level. Customized emails with individuals are based on knowledge of the customer, building a relationship rooted in trust and yielding greater results.

About Netcentives Inc.

San Francisco-based Netcentives Inc., a leading provider of loyalty and direct marketing solutions, delivers a broad suite of relationship marketing technology and services including business, consumer and employee loyalty programs, customized email marketing and consulting services. With a global customer base approaching 300 companies and 40 million managed relationships, Netcentives' patented business processes and scalable technology infrastructure provide clients with the power and flexibility to drive enduring customer relationships both online and offline. For more information about Netcentives and its portfolio of relationship marketing solutions, visit or call 415-538-1888.

NOTE: Netcentives, ClickRewards, and ClickMiles are trademarks of Netcentives Inc. Other product and company names herein may be trademarks of their respective owners.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, regarding Netcentives' business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by Netcentives, may cause Netcentives' actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements. The forward-looking statements contained in this press release speak only as of the date hereof and Netcentives expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in Netcentives' expectations or future events.

CONTACT: Wendy Tacquard of Netcentives Inc., 415-615-4410, or

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