iParty Corp. Announces Strategic Alliance With the Largest Direct Marketer of Party Supplies in the Nation

Business Wire, July 9, 1999

NEW YORK--(BUSINESS WIRE)--July 9, 1999--

iParty Corp. (OTC BB: IPTY), the premier Internet party-goods source announced today a product fulfillment partnership with Taymark, the nations largest direct marketer of party supplies. This alliance strengthens iParty's current business model. Under the terms of the agreement, iParty will utilize Taymark's inventory, order tracking, and fulfillment systems to deliver electronically ordered merchandise directly to the consumer. Specific financial details of the transaction were not disclosed.

Headquartered in New York City and located at http://www.iParty.com, iParty is the Internet-based source of party goods, party-related services, personalized celebrity greetings, and party planning advice and information. From children's birthday parties to weddings, from Super Bowl parties to Halloween, iParty uses the Internet to bring convenience, selection and party ideas to consumers, allowing them to create fabulous parties. iParty is the ultimate resource for party givers to exchange ideas about parties, select themes, make comprehensive plans, and purchase all of the goods and services for a successful event.

Under the new arrangement, Taymark, which has 31 years of direct marketing experience, will assume iParty's current inventory into a state-of-the-art 243,000 square foot facility located in White Bear Lake, MN. iParty will be able to integrate Taymark's 32,500 SKU's into the Company's existing Internet party goods storefront. Taymark will provide iParty with 1-800 number customer service through their professional call center. Taymark's call center will also process phone orders from start to finish. Stock orders placed before noon will be shipped to customers within forty-eight hours. All iParty orders will be shipped as distinct branded orders with iParty promotional inserts and labeling. The initial term of the agreement is through December 31, 2002 with an option to renew. "Taymark is the most established party-goods catalog company with the highest volume in the United States whose partnership will allow iParty to improve its online operations, including customer service," said Sal Perisano, iParty Chief Executive Officer. "This relationship, in which Taymark will actually own equity in iParty, is consistent with our business model, in that iParty will not own its own inventory, and will benefit from the capability of the industry leader in this area." Perisano also co-founded The Big Party, a national chain of 51 party superstores in 1992.

Taymark's President, Paul Griffiths said, "This is a strategic opportunity for Taymark to broaden its revenue base by aligning itself with the Internet company that is clearly jumping ahead of the pack in this industry. We are delighted to partner with Sal Perisano and his excellent management team at iParty." Certain information included in this news release (as well as information included in oral statements or other written statements made or to be made by iParty) contains statements that are forward-looking, such as statements relating to anticipated future revenues of the company and the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of iParty.