Engage To Expand Global Reach Through Acquisition of Leading Canadian Internet Advertising Network — Gallop & Gallop's Virtual Billboard Network to become Engage Canada

Business Wire, May 26, 2000

Business Editors

ANDOVER, Mass.--(BUSINESS WIRE)--May 26, 2000

Engage, Inc. (Nasdaq: ENGA), the leading provider of next generation online marketing solutions and a majority-owned operating company of CMGI, Inc., today announced a definitive agreement to purchase substantially all of the assets of Virtual Billboard Network (VBN), one of the largest Canadian-owned Internet advertising networks, through the issuance of Engage stock valued at approximately $5 million (US). Representing over 150 web sites and delivering over 30 million ad impressions each month, VBN provides Engage with a strong foothold into the rapidly growing Canadian marketplace and enhances Engage's media properties. Upon completion of the acquisition, which is expected by early-June, the business of VBN will become Engage Canada, accelerating Engage's global expansion strategy. In addition, Tom Rothfels, former chief executive officer of VBN, will become general manager of Engage Canada.

As part of the acquisition, VBN's staff of 13 will be retained in its entirety, with Engage maintaining its current operations in Toronto. VBN's extensive network of over 150 Canadian sites will be rolled into Engage Media(TM), a new division of Engage that provides marketers with one resource to seamlessly develop and manage online campaigns that meet demanding marketing goals and objectives. Engage Canada's sales team will have the opportunity to represent products and services from all Engage divisions, including Engage Media, Engage Business Media, Engage Enabling Technologies, AdKnowledge and I/PRO. Additionally, VBN's network will be integrated with the powerful Engage Knowledge database of over 52 million behavioral-based anonymous profiles, thus further expanding the breadth and depth of Engage's anonymous profile database.

Paul Schaut, Engage President and Chief Executive Officer, commented, "Our acquisition of VBN demonstrates Engage's commitment to global expansion, and marks the first step in penetrating the Canadian online marketing space. According to a 1999 Ernst & Young and IAB Canada survey, Canadian online publishers received approximately $55.5 million in ad revenues, with this number expected to reach $109 million in 2000. As an Engage strategic partner, VBN has a track record of delivering comprehensive and effective online advertising campaigns for its customers and has established strong relationships with a growing number of Canadian marketers, web publishers and media buyers. We intend to leverage these relationships to broaden the scope of our media network, generate cross-selling opportunities and build a leading presence in Canada."

As a well-known and respected advertising player, VBN is one of the largest Canadian-owned Internet advertising media companies. Leveraging the expertise of parent organization, Gallop & Gallop Advertising Inc., VBN has been successfully providing one-stop online media buying solutions for its affiliates and customers for almost four years.

"VBN's past relationship with Engage is the natural foundation for our evolution into Engage Canada," said Thomas M. Rothfels, President & CEO of VBN. "This is a great opportunity for the company and all of our employees. We're extremely excited about bringing our expertise in Canadian online advertising to help propel Engage's international expansion plans."

About Virtual Billboard Network:

Virtual Billboard Network is a division of Gallop & Gallop Advertising Inc. Founded in 1983 Gallop & Gallop, one of Canada's best-known media services companies, boasts VBN-one of the largest Canadian-owned Internet advertising networks. With over 150 participating web sites and a strategic alliance with U.S based Engage Media, VBN delivers targeted, measurable and cost-effective online ad campaigns for a variety of major national and multi-national clients. Utilizing state-of-the-art ad targeting, delivery, measurement and auditing systems, VBN delivers the most comprehensive and effective online advertising campaigns available. Gallop & Gallop will operate its other media properties out of new premises.

About Engage(R):

Engage, Inc. (Nasdaq: ENGA) is the leading provider of next generation online marketing solutions and a majority-owned operating company of CMGI, Inc. Based in Andover, Mass., Engage helps marketers target online audiences and convert them into loyal customers. Engage has European headquarters in London and offices worldwide. For more information on Engage, please visit www.engage.com

About CMGI and CMGI @Ventures:

With more than 70 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest, most diverse network of Internet companies in the world, including both CMGI operating companies and synergistic investments made through its venture capital affiliate, CMGI @Ventures. CMGI leverages the technologies, content and market reach of its extended family of companies to foster rapid growth and industry leadership across its network and the larger Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI.