myShape™ Announces Closing of Series B Round of Funding Led by Draper Fisher Jurvetson

Business Wire, July 16, 2007

myShape Changes the Way Women Shop Online, Giving Women their Own Personal Shop, Where Everything Fits and Flatters

PASADENA, Calif. -- myShape[TM] (www.myshape.com) announced today the closing of their Series B round of funding led by Draper Fisher Jurvetson (DFJ), a leading venture capital firm with a global presence. With the aspiration of transforming online apparel shopping for all busy women, myShape offers each woman her own personal shop with an assortment of clothing that fits and flatters her. With a myShape Personal Shop, each member has a great selection of outfits, styles, and sizes that MATCHES her profile; fits her measurements; flatters her body shape and reflects her personal fashion choices. Shoppers at myShape buy more, return less and are more satisfied with their clothing purchases because they fit their shape and look great.

"We invested in myShape because the personal shop offers consumers a breakthrough shopping experience that will transform online shopping and retail economics," said Emily Melton, Director at DFJ and Board Member of myShape, Inc. "myShape is an online company that offers every woman the opportunity to enter a virtual store where everything will fit, flatter and look good. myShape learns from their shoppers - their likes and dislikes, and in turn, offers the best choices through an ongoing matching system - akin to what Amazon has accomplished, but with fashion. This is more than what the fashion industry tells you or even a friend; imagine your own virtual personal shopper that will offer only clothes that are right for you."

"With DFJ as the lead investor in our Series B funding, we are ready to build myShape globally," said myShape CEO, Louise Wannier. "By inventing the personal shop which displays the assortment of clothes for each woman that fit and flatter their individual profile, we are making online shopping convenient and enabling the consumer to shop with confidence! There are millions of women who are currently frustrated with shopping and want the convenience of shopping online. myShape is very pleased to have demonstrated that the personal shop improves the fundamental online metrics significantly. myShape's online returns are less than half the industry average and conversion, and average order are 50 percent ahead of the industry averages. At myShape, we have understood that Shape is important and that to have clothes fit well, it isn't just about measurements, it is about body proportion and how the clothes balance to flatter your figure; myShape offers consumers the delight of discovering outfits that flatter."

As part of their continuing growth, myShape is proud to welcome several high-profile leaders to their board of directors. Joining myShape's new board is Phil Schlein, retail industry veteran and key investor in online innovators such as iVillage. Schlein is a venture partner with U.S. Venture Partners and comes from a distinguished retail background that was capped with an 11-year tenure as C.E.O. of Macy's West. "Until now, the actual shopping experience has gotten in the way of shopping online both for the customer and the retail industry," notes Schlein. "With the creation of the Personal Shop, myShape moves online shopping to an entirely new level of personalization. The result is that the major hurdles the retail industry has faced in the e-commerce arena are solved - that is the ability to match the customer's profile based on their shape, style and fit preferences to the appropriate merchandise - and that is what makes up each woman's Personal Shop!"

Also joining the myShape board are DFJ Director Emily Melton; Chairman Emeritus of the Tech Coast Angels investment group David Berkus; and Peter D. Whitford, former President Worldwide - The Disney Store and former Chairman and CEO of The Wet Seal, Inc.

According to Women's Wear Daily (WWD) on May 14, 2007, "Apparel sales moved into the top online spot for the first time in 2006, overtaking computers. Web sales of apparel, accessories, and footwear reached $18.3 billion in 2006, and are expected to grow to $22.1 billion this year."

Market research firm NPD surveyed 47,000 women and found 47 percent "hated" to try on clothes and 53 percent find it hard to find clothes that fit. In fact, $28 billion a year of merchandise is returned to stores because of poor fit, according to Stores.org. Women purchase over $120 billion of clothing nationally each year, often settling for clothes that are ill-fitting and rarely worn because there is no standardization in women's sizes. Depending on the manufacturer or designer, the same woman may fit well in a size four in one designer to a size six or eight in another designer.

Together, the patented Personal Shop and integrated ShapeMatch computer system effectively eliminate the "fit-based" return, offering a new wave of personalization and filtering clothing selections that will greatly increase women's confidence in online apparel shopping. Apparel sold by myShape is priced competitively with major department stores and leading specialty retailers. Given a free shipping and returns policy, myShape has broken through the preferences barrier to purchasing apparel online. The online retailer is dramatically improving retail metrics including 50 percent greater average order and less than half of the returns of other online apparel retailers.