NBC Universal to Acquire iVillage Inc.; Top Women's Online Community to Be Centerpiece of NBCU's Digital Strategy

Business Wire, March 6, 2006

NEW YORK -- NBC Universal and iVillage Inc. (NASDAQ:IVIL) have signed a definitive agreement for NBC to acquire iVillage, one of the nation's most successful online destinations for women. The acquisition was announced today by Bob Wright, Vice Chairman and Executive Officer, General Electric; Chairman and CEO, NBC Universal and Doug McCormick, Chairman and Chief Executive Officer, iVillage Inc. NBC Universal will purchase 100% of the equity of iVillage for $8.50 in cash per common share of the company for a net cost of approximately $600 million. The transaction is expected to close in the second quarter of 2006 pending shareholder and regulatory approvals.

With this acquisition, NBC Universal will engage millions of loyal iVillage users, a community which mirrors a key demographic of the NBC Universal audience - women. Every part of NBC Universal, from television and film to home entertainment will support and drive iVillage forward. From this platform, NBC Universal will chart the next generation of digital content development and enhance user experience.

"As this transaction demonstrates, we are committed to delivering content to consumers through distribution systems both traditional and new," said Wright. "Acquiring iVillage will enable us to bring our programming to a large and passionate online community. We look forward to building on the considerable brand strength iVillage has developed over the past 10 years and to giving our advertising clients new and exciting ways to reach a valuable demographic."

"With this transaction, iVillage solidifies its position as a world class brand," said McCormick. "This milestone is recognition of the contributions by our employees, our partners, and our investors. We are very excited to join the NBC Universal family and to become part of a media company that is unparalleled in its product and its people."

iVillage brings a profitable internet business, with proprietary content and a consistent user base that commands premium advertising pricing. With the addition of iVillage, NBC Universal expects to grow the company's digital revenues to approximately $200MM in 2006, and projects a 20% growth rate going forward. Full year 2005 iVillage.com revenues were up approximately 30% year-over-year, excluding acquisitions. Additionally, NBC Universal expects to realize significant cost synergies by using iVillage capabilities to support existing digital operations.

"iVillage immediately gives us scale and a profitable, established platform to expand our digital efforts, especially in the rapidly growing areas of health and women's interests," said Beth Comstock, President, NBC Universal Digital Media and Market Development. "This is all about creating important new intersections between community, content and commerce. We envision connecting more deeply online, on mobile and on demand with key consumers throughout their various life stages -- from their unique interests to their finances to their health and well-being. We are also looking to create a more customized consumer healthcare experience, working in association with GE Healthcare."

iVillage is a well-established brand and a leading destination for a fast-growing sector of the online audience. According to the Pew Internet & American Life Project, 86% of women ages 18 to 29 were online, compared with 80% of men in the same age group (January to June, 2005). iVillage currently engages over 14 million unique users(1) with rich content channels that tap into the wide span of women's interests, covering everything from 'Health & Well-Being' to 'Entertainment' to 'Beauty & Style.'

"This acquisition allows us to marry our on-air branded content with compelling new interactive functionality," added Jeff Zucker, Chief Executive Officer, NBC Universal Television Group. "From the 'Today Show' to 'Project Runway' to 'The Biggest Loser' to all the health & medical and lifestyles segments we do every day on every one of our owned and operated television stations, we will now be able to create a deeper, richer experience around our content for consumers across all emerging platforms."

Upon completion of the transaction, the iVillage team will report directly to Beth Comstock and continue to be based in New York.

J.P. Morgan Securities Inc. acted as the financial advisor to iVillage. Legal advisors to NBC Universal and iVillage were, respectively, the law firms of Weil, Gotshal & Manges LLP and Orrick, Herrington & Sutcliffe LLP.

Conference Call

Executives from NBC Universal and iVillage will hold a conference call to discuss this announcement with the press today at 10:00 AM (ET). The conference call will be broadcast live on the Internet and will be available on iVillage's Corporate Relations Web site, located at www.ivillage.com/investor, and on Street Events, located at www.streetevents.com. A replay of the conference call will be available on the iVillage Corporate Relations Web site approximately one hour after the call ends on Monday, March 6, 2006 until 11:00 AM (ET) on Monday, March 13, 2006. A transcript of the conference call will be available on the iVillage Corporate Relations Web site thereafter.