Juno signs up 100,000 members in first two months; Nation's first free internet e-mail service reaches milestone

Business Wire, July 2, 1996

NEW YORK--(BUSINESS WIRE)--July 2, 1996--Juno Online Services, L.P. today announced that it created its 100,000th free e-mail account at 10:32 a.m. on Friday, June 28, 1996-just over two months after beginning its controlled nationwide rollout. Juno, which was organized and financed by D.E. Shaw & Co., L.P. and its affiliates, provides free Internet e-mail to anyone who has access to a personal computer running Microsoft Windows and equipped with a modem. Rather than charging its users, Juno has adopted a strategy of deriving revenues from such sources as selectively targetable advertising, interactive online market research, and optional billable services.

"We're excited that the service has grown so quickly," said Juno President Charles Ardai, "and that we've had such overwhelmingly positive feedback from our users. Not only are they using Juno themselves, but they're also bringing their friends, colleagues, and families online." Juno's Chairman, Dr. David E. Shaw, added "We see this as more than just another investment opportunity. We regard the provision of free electronic mail as an important first step toward the national goal of providing universal access to the Internet."

Mark Moraes, Juno's Vice President of Network Development, expressed satisfaction with the system's reliable performance during the initial ramp-up period. "We're already handling over 200,000 e-mail messages a day, and have thus far seen no indication of any problems that would keep us from scaling that up well into the millions." Marketing and Distribution Agreements As part of its effort to reach millions of potential members, Juno recently announced a marketing relationship with Marriott Hotels, Resorts & Suites. The firms' initial activities will include distribution of the Juno software to active members of Marriott's Honored Guests Awards and Marriott Miles Membership programs.

Juno is already conducting joint promotions with Sony Theatres, and is a participant in Budget Rent A Car's "Friends in High Places" program. The firm is also in the process of finalizing agreements with several other major companies who will participate in distributing and promoting the Juno software in addition to advertising over the service.

About D. E. Shaw & Co.

D. E. Shaw & Co., L.P. is a small (about 330 employees) but highly capitalized (with aggregate equity in excess of $700 million) investment banking group with offices in New York, Boston, London, and Tokyo whose activities focus on various aspects of the intersection between technology and finance. The firm was founded in 1988 by Dr. David E. Shaw, who was formerly a professor in the Computer Science Department at Columbia University. Dr. Shaw was appointed by President Clinton in 1994 to the President's Committee of Advisors on Science and Technology, in which capacity he serves as chairman of the Panel on Educational Technology. Over the past two years, D.E. Shaw & Co. has begun to invest in start-up and early-stage ventures within industries its management believes are likely to be fundamentally transformed by the use of computers. -0-

To request a free copy of the Juno software, call 1-800-654-JUNO or send e-mail to "signup@juno.com".

CONTACT: Dominique Marchand OR Amy Conefrey

Juno Online Services, L.P. Rourke & Company

212-478-0800 617-267-0042, Ext. 303

marchand@juno.com aconefrey@juno.com