Alloy Catalog to Run First Ever Advertisement; Alloy Online to Promote New Clairol's Herbal Essences Game Via Both Print Catalog and Web Site

Business Wire, Feb 7, 2000

Business &Technology Editors

NEW YORK--(BUSINESS WIRE)--Feb. 7, 2000

In a significant announcement, Alloy Online (NASDAQ: ALOY), a leading Internet destination for the 56 million teens in Generation Y, revealed its spring print catalog featuring a Clairol advertisement. This will not only mark the first time the Alloy catalog will feature a print advertisement, but represents a first in marketing for Clairol's Herbal Essences line, which has never advertised in a mail order catalog or promoted products through other on-line outlets other than herbalessences.com. In addition, the Alloy Web site, www.alloy.com, will build a splash page on its site promoting and ultimately driving teens to the Clairol Herbal Essences Web site, www.herbalessences.com, where they can play the Herbal Essences Totally Organic Garden Web-based game for chance to win a trip to Costa Rica.

&uot;We are thrilled that a reputable brand like Herbal Essences has chosen Alloy to debut its first ever mail order catalog advertisement,&uot; commented Samantha Skey, Vice President, e-commerce and sponsorships, Alloy Online. &uot;This venture clearly demonstrates Clairol's desire to utilize Alloy's unique convergent media model which includes the catalog, e-zine and Web site in order to directly reach millions of teens.&uot;

Debuting this week, Alloy's new catalog and Web site links are an integral part of Clairol's online marketing strategy designed to increase brand awareness among teen girls. The deal also includes a special gift with purchase. The first 5000 visitors to purchase Alloy merchandise will receive an Herbal Essences zipper pull, featuring 'Passion Flower', a key character in the brand's Totally Organic Garden on-line game.

&uot;Clairol is excited to take this step into cyberspace and reach teens where they live, &uot; notes Bill Susetka, President, Clairol US Retail. &uot;And I can think of no better brand than our wildly popular Herbal Essences to lead the way.&uot;

About Alloy Online

Alloy Online is a leading Web site and direct marketer providing community, content, commerce, and entertainment to Generation Y, one of the fastest growing segments of the Internet population. Its convergent media model - which combines its Web site (www.alloy.com), its Alloy Online e-zine and its catalog, Alloy - has a total reach of more than 10 million individuals per month. Together, these components offer a unique blend of services through which teens can interact, share information, explore compelling and relevant content and shop for apparel, accessories, footwear, music, cosmetics and magazine subscriptions. For further information regarding Alloy Online, please visit the company's Web site (www.alloy.com) and click on `Investor Info' or call the investor information line at 877-ALLOY-IR.

This announcement may contain forward-looking statements that involve risks and uncertainties, including statements regarding expanding our presence in a variety of media; creating new revenue opportunities; the successful implementation of our operating and growth strategies, generating increased traffic flows to our Web site; our ability to leverage our Web site, direct marketing and e-mail magazine properties; and our ability to leverage and grow our database. Our actual results could differ materially from those projected in the forward-looking statements and reported results should not be considered an indication of our future performance. Factors that might cause or contribute to such differences include, among others: our expected future losses; our operating and growth strategies may not generate increased traffic flows to our Web site, broaden the appeal of our Web site, or attract additional or repeat traffic to our Web site; we lack experienced management and personnel; we may not be able to adapt as Internet technologies and customer demands continue to evolve.