Groupe Casino of France Signs e-Marketing Agreement with InterAct Electronic Marketing, Inc

Business Wire, June 21, 2000

Business Editors/High Tech Writers

CHARLOTTE, N.C.--(BUSINESS WIRE)--June 21, 2000

GEANT Hypermarkets To Pilot In-Store "Web Kiosks" to

Deliver Targeted Offers to Shoppers

InterAct Electronic Marketing Inc. ("InterAct") announced a multi-year agreement with Groupe Casino, Saint Etienne, France to deploy InterAct's proprietary e-marketing technologies in GEANT, the Hypermarket Division of Casino.

Through its wholly owned French subsidiary, InterAct will install NCR supplied in-store multi-media "web kiosks" that will enable GEANT to utilize InterAct's proprietary consumer targeting and multi-media technologies to deliver customized purchase incentives and advertisements for GEANT customers prior to shopping. The agreement includes a multi-store pilot beginning this summer, which, if successful, would be followed by commercial expansion into the remainder of GEANT's 108 Hypermarket stores. In addition to the GEANT chain, Casino -- France's fifth largest grocery retailer -- operates 3500 grocery stores throughout the world, which may be considered for future expansion of the InterAct system.

Utilizing InterAct's proprietary e-marketing technologies, GEANT loyalty card holders will receive, prior to shopping, personalized information and offers based on their historic purchases that are electronically redeemable in discounts on their favorite brands as well as on general merchandise. Linked to GEANT's reward program "Points ciels", the system also enables GEANT customers to check their points balance and receive recipes electronically.

"We are eager to partner with Casino, a highly regarded global food retailer," said Stephen R. Leeolou, Chairman and CEO, InterAct. "Casino is recognized as an innovation leader and they can build on this reputation by being able to utilize InterAct's leading edge e-marketing technologies both in-store and online to grow consumer loyalty, and increase sales and profits."

About InterAct Electronic Marketing, Inc.

Founded in 1993, InterAct Electronic Marketing, Inc. is headquartered in Charlotte, NC, with European operations based in near London. The InterAct e-Marketing Network seamlessly delivers database targeted shopper incentives and advertising impressions via the internet and some 3,000 server-based Multi-Media Terminals in more than 20 retail chains in the United States and Europe. More than 2,500 stores in the U.S. and Europe have installed InterAct's patented technologies with another 4,000 contracted for installation. InterAct's current retail partners represent the potential for marketers to communicate with an estimated 50 million consumers. The company has invested more than $200 million in its technology and business development.

"Safe Harbor" Statement under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended: Except for the historical information presented, the matters disclosed in this release include forward-looking statements. These statements represent the Company's current judgment on the future and are subject to risks and uncertainties that could cause actual results to differ materially. Such factors include, without limitation, the following: (i) the Company's limited operating history, significant losses, accumulated deficit, negative cash flow from operations and expected future losses, (ii) the dependence of the Company on its ability to establish, maintain and expand relationships with manufacturers to promote brands through InterAct e-Marketing ("IEM") and the uncertainty of market acceptance for the IEM, (iii) the uncertainty as to whether the Company will be able to manage its growth effectively, (iv) the early stage of the Company's products and services and technical and other problems that the Company has experienced and may experience, (v) risks related to the Company's substantial leverage and debt service obligations, (vi) the intensely competitive nature of the consumer product and promotional industry, (vii) risks that the Company's rights related to patents, proprietary information and trademarks may not adequately protect its business and (viii) the Company's ability to attract and retain competent management employees. The foregoing and other risks are or may be more specifically described in, and should be read in conjunction with, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations-Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1999 and the Company's other reports and filings with the Securities and Exchange Commission.