Estyle Inc. Secures $25 Million in Fourth-Round Funding; Company Adds PRIMEDIA Inc. to List of Investors; New Funding Further Establishes its Leadership Position

Business Wire, Nov 13, 2000

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Nov. 13, 2000

estyle Inc. (www.babystyle.com and www.kidstyle.com), a multi-channel lifestyle retailer serving the shopping needs of women at key stages of their lives, announced the closing of its $25-million fourth round of funding with new investor PRIMEDIA Inc. (NYSE:PRM) joining estyle's prior investors, which include Vulcan Ventures, Maveron LLC, Goldman Sachs, Global Retail Partners, Oak Investment Partners, Arts Alliance, Venture Strategy Partners and Zone Ventures.

To date, estyle has raised $85 million in funding and the additional funds will be used to further broaden and extend the estyle brand. With this closing, estyle clearly differentiates itself with a proven multi-channel strategy enhanced by private label merchandise.

"This round is further validation of our multi-channel business model and is a clear vote of confidence for estyle as we expand our offering and continue to service the more than $100 billion baby, children and women's market," said Laurie McCartney, CEO and Founder of estyle Inc. "We've clearly established ourselves as a leader among online retailers by implementing a long-term, multi-channel business strategy that includes extending the estyle brand through business partnerships with companies like PRIMEDIA and other exclusive relationships."

Since its inception in 1998, estyle.com has expanded its services to target the growing online female audience by providing women with lifestyle-based e-commerce solutions for themselves and their families. Through its direct relationships with more than 500 vendors, estyle.com has successfully assembled a prestigious roster of brands for consumers.

Earlier this year, the company introduced a collection of private label fashions for women, kids and babies, making estyle one of the few online retailers to have in-house designers creating private label lines exclusively for the company.

"estyle is a very promising e-commerce company and represents an important strategic partnership for Primedia's American Baby Group," said Tom Rogers, Chairman and CEO of Primedia. "We are pleased to support the company's future vision and growth strategy."

PRIMEDIA's participation in this round of financing includes targeted advertising and promotional opportunities through the American Baby Group, including print magazines, television, online, sampling programs, direct mail and consumer fairs. In addition, PRIMEDIA will provide content from the American Baby Group, print advertising in New York and Chicago magazines and cash.

About estyle Inc.

estyle Inc. is a multi-channel lifestyle retailer serving the shopping needs of women at key stages of their lives. The company's flagship Web site, www.babystyle.com, offers a one-stop shopping solution for new and expectant parents from pregnancy through the baby's first two years.

With a comprehensive gift registry and extensive selection of both gifts and basics, babystyle.com offers the best assortment of maternity and baby clothes, nursery furnishings, baby gear and infant developmental products.

estyle's second site, www.kidstyle.com, provides the most convenient and unique shopping solution for parents, grandparents, and friends of children ages 2-10 by offering an unmatched selection of kids' clothes, fashions for children's rooms, distinctive toys, great gifts, and a gift registry.

In addition to the broadest selection of both exclusive and popular brands, all estyle sites feature unique private label merchandise which includes maternity, baby and kids clothing basics and gifting ideas.

The company's brands extend to multiple channels including catalogs and traditional brick and mortar outlets. estyle.com will continue to roll out leading commerce sites geared towards today's busy women.

To date, estyle has raised over $85 million with investments from leading investors in the retail, branding and Internet sectors, including Zone Ventures, the Southern California affiliate of Draper Fisher Jurvetson, Microsoft Co-Founder Paul Allen's Vulcan Ventures, Maveron, Goldman Sachs, Oak Investment Partners, Global Retail Partners, Primedia, Arts Alliance, luxury products company Chanel and Venture Strategy Partners.

Other partners include Cindy Crawford, who is a board member, editorial contributor and strategic advisor to the company, as well as Weider Publications, publisher of Fit Pregnancy Magazine.

About Primedia

PRIMEDIA Inc., with 1999 sales of $1.7 billion, is a targeted media company with print, video, and Internet businesses focused on consumer and business-to-business audiences. The company publishes more than 220 magazines, and owns and operates approximately 300 Web sites and other Internet properties. PRIMEDIA's stock symbol is NYSE:PRM.