aggregate Internet reach among home and work

users of 22.9%, according to Media Metrix reports. They deliver enhanced branded

services and content with a growing emphasis on services that take advantage of

Internet ubiquity and broadband access. NBCi integrates fast-growing and premier

assets such as Snap.com, Xoom.com, NBC.com, VideoSeeker.com and NBC-IN.com and

content from AccessHollywood.com. They combine the NBC media brand and related

content with the complementary portal and navigation services of Snap.com and

community and direct e-commerce services of Xoom.com to deliver a comprehensive,

entertaining and compelling Internet experience to a broad audience. They believe

their core services will provide the foundation for a next-generation media

company whose e-commerce and community orientation will reach a diverse user

base through a variety of interactive media including broadcast and cable

television, radio and the Internet.

They believe that their services create an environment that attracts users and encourages both longer and repeat visits as well as customer loyalty, resulting in a large base of registered members. These services are focused on generating both advertising and e-commerce revenue by allowing advertisers and merchants to reach a broad and segmented audience of Internet users. Their portfolio of content, community and e-commerce services include:

- ENTERTAINMENT SERVICES: free rich media and broadband content,

user-generated content, chat rooms and online greeting cards

- INFORMATION SERVICES: free directory, global resources and information,

local and personalized content and personal finance information

- UTILITY SERVICES: free e-mail, search engine, Web development tools, home

pages, digital user storage and software libraries

- E-COMMERCE SERVICES: business-to-consumer services and

business-to-business tools such as auctions, price comparison shopping

engine, database marketing, shopping directory, digital wallet, business

portal and business directory

They believe their ability to aggregate information about their consumers' interests across these online services, in combination with their ability to coordinate network advertising with NBC, will provide cross-selling and promotional opportunities that distinguish us from most of their competitors in the Internet industry. In addition, they have the ability to target customers with advertising and e-commerce opportunities using demographic data and information on buying habits, services used and lifestyle interests. This information is collected on a permission basis and they use it to assist advertisers in focusing and monitoring the effectiveness of their presentations, as well as to offer relevant e-commerce opportunities. They facilitate these transactions through their direct e-commerce platform and proprietary database management system.