MSGi Subsidiary Metro Direct Signs A&E Television Networks

Business Wire, Jan 7, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--January 7, 2000

Marketing Services Group, Inc. (Nasdaq: MSGI), an Internet and integrated marketing services industry leader, today announced that its subsidiary Metro Direct has been retained by A&E Television Networks (AETN) for customer acquisition services. Terms of the deal were not disclosed.

Metro Direct will prepare AETN subscriber acquisition campaigns for more than fifty cable systems, encompassing over one million households. These leads will be processed at Metro's data center in New York. As part of this process, a geo-demographic lifestyle coding will be appended to each record, classifying each AETN prospect household into specific lifestyle segments. Finally, using information generated from a proprietary computer model, AETN will be able to select those individuals most likely to respond to their ongoing prospect campaigns for The History Channel, The Biography Channel, and History Channel International.

Jeremy Barbera, Chairman and CEO of MSGi stated, "Metro Direct has been the clear leader in entertainment marketing for more than a decade and this new engagement will forge the way for a long-term relationship with A&E Television Networks, adding to our extensive roster of blue-chip entertainment accounts. We have made significant headway in our efforts to strategically expand into the media and cable industries and are very pleased to have earned the confidence of AETN."

About A&E Television Networks

A&E Television Networks, a joint venture of The Hearst Corporation, ABC, Inc. and NBC, is an award-winning, international media company offering consumers a diverse communications environment including television programming, magazine publishing, web sites, music and home videos, as well as supporting nationwide initiatives. Television programming consists of four networks in the United States: A&E Network, The Biography Channel, The History Channel, and History Channel International; and one international network marketed by AETN International. AETN Enterprises is the new business arm of the company.

About Metro Direct

Metro Direct integrates strategy, information and the most advanced database marketing and data processing technology to offer clients comprehensive direct marketing solutions. Metro's versatility allows it to cater to multiple industries including entertainment, financial services, fundraising, retail, and business-to-business. Services include database development, data processing, list brokerage and maintenance, predictive modeling, lead generation, consulting and campaign strategy.

About MSGi

Marketing Services Group, Inc. is a leader in the Internet and integrated marketing services industries. MSGi's revenues have grown from $16 million in fiscal 1996 to in excess of $100 million on an annualized basis. GE Capital is the owner of an 18 percent stockholder position in MSGi and CMGI is the owner of a 10 percent stockholder position in MSGi.

MSGi is organized into two business divisions: The Internet Group and The Direct Group. The Internet Group's mission is to acquire, invest in and incubate Internet companies. Its preliminary focus is on WiredEmpire, and its Marketing Agent technology. MSGi plans to expand into other strategic areas. The Internet Group provides Internet marketing, e-commerce applications, Web development and hosting, online ad sales and consulting. The Direct Group provides strategic planning, direct marketing, database marketing, telemarketing, telefundraising, media planning and buying. Through this business segment, MSGi will continue to grow by leveraging the synergies it has across all its companies in marketing, technology, and capabilities.

Thousands of clients worldwide are provided services by MSGi, which has offices throughout the United States and in London. Corporate headquarters are located at 333 Seventh Ave., New York, NY 10001. Telephone: 917-339-7100. Additional information is available on the company's Website: http://www.msginet.com.

Matters discussed in this release include forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ are stated in the company's reports to the Securities and Exchange Commission including its 10-Q for the period ended September 30, 1999 and the annual report on Form 10- K for the year ended June 30, 1999.