Shop At Home Network Announces Marketing Agreement With Yahoo!

Business Wire, May 5, 1999

NASHVILLE, Tenn.--(BUSINESS WIRE)--May 4, 1999--

Shop At Home, Inc. (NASDAQ:SATH), a diversified media company specializing in television and Internet shopping, has entered into a one-year cross-promotional agreement with Yahoo! Inc. (NASDAQ: YHOO), that includes the launch of co-branded auctions and promotions. The agreement is Shop At Home Network's first Internet relationship and will contribute significantly to the Network's promotional plan for its current site www.shopathomeonline.com and www.collectibles.com, which will launch later this year.

Shop At Home President and CEO Kent Lillie said, "We are thrilled about our relationship with Yahoo!. This is a mutually beneficial marketing agreement that allows us to leverage each other's marketing platform to develop unique, co-branded promotions that help drive traffic to our sites. This agreement demonstrates the power of combining traditional media and new media to market products and services. Shop At Home is continuing to seek similar synergistic relationships with industry innovators like Yahoo! in an effort to quickly build market share for collectibles.com and shopathomeonline.com."

"Yahoo! continues to broaden its commerce content to provide users with an online experience that is both entertaining and rewarding," said Grant Winfrey, Director, Brand Management at Yahoo!. "Working together with Shop at Home, we are giving each of our communities more of what they are looking for, great items at the prices they want, when they want to get them."

Highlights of the agreement include plans for Yahoo! and Shop At Home Network to actively advertise each other's services and to launch co-branded promotions. Additionally, Shop At Home has opened a Yahoo!(R) Store and has placed products in Yahoo! Shopping. Shop At Home auctions and store can be found easily on Yahoo! by going to http://shopathome.yahoo.com. Shop At Home Network is also developing the "Totally Yahoo! Hour" segment, featuring Yahoo! merchandise, auction items and items from the Shop At Home Yahoo! Store. The segment will be broadcast on the Shop At Home Network starting in a few months. Additionally, Shop At Home and Yahoo! will co-sponsor celebrity and show host chats on Yahoo! Chat (http://chat.yahoo.com) to be promoted on the Network.

Shop At Home Network and Yahoo! have also agreed to launch the co-branded "One-Dollar Auction" that will be prominently featured on Yahoo! Auctions. The asking prices for all items on the "One-Dollar Auction" will start at $1.00. Shop At Home Network will provide unique collectible merchandise designed to appeal to all sorts of collectors. Examples of the types of items that may be offered through the "One-Dollar Auction" include juke boxes, pinball machines, rare records, movie posters, rare toys, collectible lunch boxes, vintage concert posters, and movie memorabilia. Visitors to the "One Dollar Auction" page will be able to link directly to shopathomeonline.com or the Shop At Home Yahoo! Store.

Shop At Home Network is one of the country's oldest and fastest growing home shopping network. The Company reaches over 60 million full and part-time television households for a portion of each day through its network of over 200 affiliated television, cable and direct broadcast satellite systems, and its owned and operated stations. The Company currently provides online shopping at www.shopathomeonline.com and plans to launch www.collectibles.com later this year.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 - This release contains forward-looking statements within the meaning of Section 27A of Securities act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the statement regarding the expectation of continued revenue and earnings growth. Actual results may differ materially from those identified for a number of reasons as are discussed from time to time in Shop At Home's SEC reports, including but not limited to the registration statement on Forms S-1 filed on January 14, 1998, as amended and reported on Form 10-KA for the year ended June 30, 1998 (Business and Management's Discussion and Analysis of Financial Condition and Results of Operations).