Avalon Digital Marketing Systems Reinforces Market Leadership in Direct Digital Communications; New Customer Wins Demonstrate Continued Momentum

Business Wire, Nov 12, 2002

Business Editors/High-Tech Writers

HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Nov. 12, 2002

Avalon Digital Marketing Systems Inc. (Nasdaq:AVLN), a leading provider of digital marketing software and services that enable companies to communicate and sell more effectively and efficiently over the Web and via e-mail, today announced more than 30 new strategic customer wins for the quarter ending Sept. 30, 2002.

In addition to a number of key new customer relationships, including Novell, NEC, Forrester Research, PricewaterhouseCoopers, Mervyn's and Fujitsu, Avalon is continuing to grow through expansion of relationships with existing clients such as BMG, Cendant and the National Basketball Association.

"E-mail is undoubtedly the Internet's `killer app' and one of the most cost effective promotional tools available," said Gordon Kay, director of Team Technologies for the NBA. "Avalon Digital's e-mail technology is enabling us to deliver more compelling content directly to our target audience and fan base, giving them the opportunity to see behind-the-scene footage and keep us top of mind, as well as share their excitement with friends and family."

"Avalon's reputation as a pioneer and leader in the maturing digital marketing space has put us in an enviable position with improved revenues and superior solution-based offerings," explained Jeanniey Mullen, CMO of Avalon Digital Marketing Systems.

"We're experiencing steady growth from repeat business, commitments for larger contracts and are seeing a consistent stream of new customers, which will impact revenues going forward. We anticipate continued momentum as more and more Fortune 1000 firms appear to be shifting their attention and marketing budgets to digital messaging as a cost effective and efficient alternative to more expensive communications channels."

"E-mail continues to become an increasingly important component of our marketing mix," stated Cathy Hoag, VP of integrated marketing at Cendant. "Avalon has equipped us with innovative, scalable technology and extensive e-marketing services and support that go beyond traditional methods, helping us manage digital customer communications for a number of our brands including Howard Johnson, Days Inn, Travelodge and Ramada."

About Avalon Digital Marketing Systems

Avalon Digital Marketing Inc., with headquarters in Southern California and offices in New York, Salt Lake City and Hong Kong, provides digital marketing software and services that enable clients to communicate and sell more effectively and efficiently over the Web and via e-mail.

The company's expertise is centered on three key areas of e-business -- content, commerce and communications. Avalon provides complete digital marketing solutions to large enterprise customers, as well as small business software and products through Avalon Business Direct.

In addition to a growing customer base of more than 10,000 small businesses, Avalon's large enterprise clients include more than 100 leading companies including Ceridian, Johnson & Johnson, Cendant, Avaya and the NBA (National Basketball Association).

Certain statements contained in this news release may be deemed to be forward-looking statements under federal securities laws, and the company intends that such forward-looking statements be subject to the safe-harbor created thereby. Information on additional factors that could affect Avalon Digital Marketing Systems and its financial results is included in the company's annual report on Form 10-K for the year ended Sept. 30, 2001 and its other periodic filings with the Securities and Exchange Commission. Avalon DMS undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.