DIGS Inc., soon to be iVideoNow Inc., Selected by Dollarstore.com for Major MultiMedia Marketing Campaign

Business Wire, May 31, 2000

Business Editors

ENCINO, Calif.--(BUSINESS WIRE)--May 31, 2000

Company Will Supply Full Array of Services to Support e-Commerce

Business Innovator including Internet-Video, CD-ROM Products

DIGS Inc. (OTCBB:DIGS), a supplier of multimedia and Internet communications solutions for corporations, today announced that it has reached an agreement to supply The Dollarstore.com Inc. with the entire range of its multimedia services.

These will include its flagship iVideoNow(TM) video on-demand application, a complete promotional package with CD-ROM and companion brochure, along with related design, production and technical services.

(Note: As previously announced, DIGS expects to complete changing its name to iVideoNow(TM), Inc., and trading symbol to VNOW, within the next few weeks.)

The far-reaching program targets dual objectives: enhancing site functionality, customer appeal and sales performance with the addition of the unique iVideoNow(TM) application; and expanding traffic, visibility and strategic relationships for the e-commerce innovator using the latest digital communication tools.

Based in Costa Mesa, Calif., Dollarstore.com Inc. was the pioneering e-commerce business devoted to discount shopping. The portal Web site www.dollarstore.com offers convenience, selection and low prices to consumers via five related Web sites.

The contract calls for the launch of the company's iVideoNow (TM) video screening player on the www.dollarstore.com site to showcase featured merchandise and services.

As part of the marketing effort, DIGS Inc. (iVideoNow(TM) Inc.) will immediately begin development and production of a complete multimedia CD-ROM dynamically presenting Dollarstore.com's full range of resources for buying and selling discount general merchandise online. The promotional package will include a companion print brochure to be designed and produced by DIGS' DXF design subsidiary.

Peter Dunn, president and chief executive officer of DIGS (iVideoNow(TM) Inc.), called the agreement "a significant forward step" for his company.

"Dollarstore.com is our first client to contract for the full range of our services, and we believe this is an ideal opportunity to support the success of a growth-oriented Web innovator and at the same time showcase our capabilities. Our unique iVideoNow(TM) video application is expected to premier on the site this summer. Its powerful video on-demand capabilities will be used to increase customer appeal and drive sales."

Rex Mehta, Dollarstore.com Inc.'s founder and president, stated that his company has "ramped up for extremely rapid growth." Dollarstore.com, Inc.'s stated goal is to gain one million buyers by the end of 2000 and thereby become a top ten Internet shopping site.

"We believe our relationship with the iVideoNow(TM) Inc. team will support our strategic marketing objectives for increased visibility, growth and site merchandising. As a pioneering e-commerce business, we were looking for cutting edge digital solutions, which is what they are bringing to the table," Mehta said.

For more than a year, DIGS (iVideoNow(TM) Inc.) has been working to develop the iVideoNow(TM) multi-window video playback application and the related iVNDS(TM) delivery system. The unique iVideoNow product offers viewers considerable flexibility as to what they view and at what quality. Users may screen up to thirty-six videos in the player's preview windows.

The proprietary four-star quality system allows the viewer to select the quality level they wish for full screen viewing. The iVideoNow clock feature detects the speed of the user's connection, computes the download time needed for each quality level based on the length of the video and displays the information to the user.

The company sees broad marketing uses for its video player in many industries including entertainment (film, television and music), retail and travel, as well as in company intranets for internal communications.

The Dollarstore.com Inc. family of five discount shopping sites allows consumers, wholesalers, surplus dealers, auction lovers and store owners to conveniently evaluate, buy or sell small and large quantities of general merchandise secured through the corporation's worldwide network of manufacturers and distributors.

The five discount sites are as follows: dollarstore.com, the virtual retail store; dollarmerchandise.com, the wholesale trade's brokerage; dollarsurplus.com, the closeout merchandise site; dollaronsale.com, the virtual online large quantity auction; and mydollarstore.com, the physical retail store buying service.

DIGS Inc. (iVideoNow(TM) Inc.) designs and develops complete multimedia and Internet communications solutions for corporations. Its Digital Corporate Profiles (DCP) subsidiary provides public companies with powerful communications tools including unique CD-ROMs designed for investor relations, marketing, environmental health and safety reporting and employee outreach. The company serves such leading companies as Intimate Brands Inc., parent of Victoria's Secret; The Limited; The Cheesecake Factory; Del Webb Corp.; Mikohn Gaming Corp.; and ARCO (Atlantic Richfield). The DXF Design Inc. subsidiary provides a complete range of Internet, CD-ROM and print design services.