Coupons.com Rolls Out Online Distribution Service for Local Merchants; New Offering Extends Company's Business-to-Business Solution

Business Wire, Jan 16, 2001

Business Editors/Technology Writers & Retail Reporters

PALO ALTO, Calif.--(BUSINESS WIRE)--Jan. 16, 2001

Coupons Inc., the leading provider of Internet-based technology solutions that enable secure home printing of coupons for businesses and consumers, today announced its new online distribution program for small to medium sized merchants.

Called "Extend Your Reach" - the program allows merchants to offer a secure print-at-home coupon to targeted zip codes for an affordable price point of $10.00 per zip code per month. Merchants will also have the option of accepting offers on wireless devices. The coupons will be distributed to consumers throughout the Coupons Inc.'s network.

"We are pleased to offer local merchants the ability to extend their distribution reach beyond the more costly traditional printed mediums," said Steven R. Boal, president and CEO of Coupons Inc. "By leveraging our technology we can help small and medium sized business owners affordably provide coupons to qualified consumers in targeted regional areas."

Said Meredith Schwartz, editor at Gifts & Decorative Accessories magazine "Electronic couponing programs address a key problem for retailers today by helping businesses drive their Web traffic to increase offline bricks and mortar sales."

This program expands Coupons Inc.'s business-to-business offerings that were first rolled out in September 2000. The offerings provide businesses the ability to use online coupons to drive offline spending and to increase the success of their marketing promotions. Coupons' three programs are based on the technology behind the consumer application (found on the company's site www.coupons.com). Business customers use the programs to deliver coupons directly to their customers from their corporate web sites (Bricks), from online banner ads (AdBricks), and through targeted emails (eBricks).

"We are excited to expand our reach to online customers with a complementary offering to the traditional printed coupons consumers now receive," said Marnie Ives, co-owner of Kron Chocolatier, Great Neck, New York.

The Company expects to offer the program to over 100,000 merchants within the next 60 days via an online e-marketing campaign. Coupons Inc. will also move to strongly build brand presence through promoting the program by providing merchants counter cards and window stickers.

In a move to speed national acceptance of the program, the Company also announced it will hire up to 5000 local and regional sales representatives to sell the program in exclusive territories and will pay an ongoing commission of 20% on the realized sales. Interested parties can apply for authorized sales representative status online at www.coupons.com.

One of the benefits that merchants should expect is an above average redemption rate (typical Coupons Inc. redemption rates average greater than 10%). For more information on the program go to www.coupons.com or contact the company directly at (650) 858-2400.

About Coupons Inc.

Headquartered in Palo Alto, California, Coupons Inc. is the leading provider of Internet-based technology solutions that enable secure home printing of coupons for businesses and consumers. Coupons.com is Coupons Inc.'s industry leading online destination for people seeking coupons. The Coupons.com network of providers includes Valassis Communications, Inc. (NYSE:VCI), the free standing insert giant, which owns a minority interest in the company, and Val-Pak, which provides regionalized promotional offers. The Company's proprietary, patent-pending PASSport technology provides a secure and targeted distribution system for coupons that can be printed a home for in-store redemption, or redeemed electronically when shopping online. Coupons.com advertisers include Lenscrafters, Fingerhut, Choice Hotels, Cooking.com, Linens-n-Things, Disney.com, Mrs. Field's Cookies, Salton, Inc., Very Fine Juices, Honeysuckle White, Netgrocer, PC Flowers & Gifts, Pearle Vision Centers, Petco and Radio Shack. With over 1.7 million unique visitors per month, (PC Data, 3/2000) Coupons.com ranks as one of the fastest growing sites which provide savings for both online and offline shoppers. For more information visit the company web site at www.coupons.com.