NBC Launches Its First Public Internet Company, NBC Internet, Inc. (NBCi), On NASDAQ

Market Wire, 20050229

NBC today officially launched its first public Internet company bearing its name and branding, NBC Internet, Inc. (NBCi). Bob Wright, President and CEO of NBC and Chairman of NBCi, and Chris Kitze, CEO of NBCi made the announcement after the successful closing of the transactions to form NBCi. NBCi shares begin trading today on The Nasdaq Stock Market(r) under the ticker symbol NBCI.

NBCi also unveiled its flagship Web service, Snap (www.snap.com), which provides a comprehensive online experience to users worldwide via Internet search & directory, community, shopping, e-commerce, multimedia and entertainment services across all bandwidths. NBCi's new Snap is a place for consumers to search for, find and buy virtually anything on the Internet, offering an array of free services for both new and experienced Internet users.

With the closing of this transaction, NBCi's properties rank as the seventh-most visited Web sites and services on the Internet, according to the September 1999 Media Metrix rankings. NBCi was formed out of the combination of the Snap.com Internet portal, the community services and direct e-commerce company XOOM.com and select Internet properties of NBC, including NBC.com, NBC Interactive Neighborhood, AccessHollywood.com VideoSeeker and a 10 percent equity interest in CNBC.com.

NBC / NBCi Integrated Strategy Today's moves are part of an overall strategy designed to keep NBC and NBCi at the forefront of the convergence of traditional media and the Internet, transitioning TV and radio audiences into Internet users, with electronic commerce at the centerpiece of the new strategy. NBCi is NBC's exclusive general Internet portal and broad-based e-commerce and community service.

Wright commented, "With today's launch of NBCi and the Snap site, NBC takes the next step beyond traditional media platforms into the Internet to become an electronic commerce company, enabling our valuable network television advertisers to directly reach consumers. This significant occasion also marks the first time in NBC history that investors have the opportunity to purchase stock in a company that bears the NBC name and logo as part of its identity."

"Backed by the power of the peacock, NBCi today becomes a truly global integrated media company, bringing together the muscle of broadcast and cable television to enable partners to better reach consumers," said Kitze. "Through our extensive partnerships with NBC, Clear Channel Communications, ValueVision International and others, NBCi can uniquely market and distribute services to virtually every Internet household in the country."

NBCi Deal with Clear Channel Communications, Inc. In related news, NBCi announced today a multifaceted promotion and distribution deal with Clear Channel Communications, Inc., under which NBCi's services will be promoted on the media conglomerate's more than 425 radio stations and integrated into the stations' companion Internet properties. Additionally, Clear Channel Chairman and CEO, Lowry Mays, will serve on the board of directors of NBCi. (See related release "NBC Internet, Inc. (NBCi) To Promote and Distribute Services on More Than 425 Clear Channel Communications Radio and Internet Properties," November 30, 1999)

NBCi's agreements with Clear Channel Communications, NBC and others, enable NBCi to tie together opportunities across multiple media platforms - Internet, broadcast, cable and radio - allowing partners to reach and connect with virtually every Internet household in the United States. To do so, NBCi is working with NBC's broadcast, cable and syndicated television properties, ValueVision International's SnapTV cable and Internet home shopping venture and a host of radio and Internet partners.

Snap Flagship Service

NBCi's flagship service, Snap, features both original and aggregated content and services from more than 100 leading Web publishers and showcases a hand-built directory and over 500 topic resource centers. The new Snap also features a service designed for broadband and higher-speed Internet users which spotlights audio, video and other multimedia content. NBCi's Snap is distributed by more than 50 leading Internet service providers, telephone companies and cable providers.

"With Snap as our leading consumer brand, NBCi is best positioned to provide Internet services across emerging Internet devices and broadband delivery platforms, providing users with content and services that take full advantage of audio, video and other rich media capabilities," said Edmond Sanctis, President and COO, NBCi. "Today's announcements give NBCi even greater resources and promotional power in defining the next generation Internet experience."

As part of the transactions to form NBCi, NBCi and NBC have entered into an agreement for NBCi to acquire $405 million in NBC TV Network and cable advertising over the next four years.

Through its complete suite of Internet services - including Snap, XOOM.com, NBC.com, VideoSeeker, Access Hollywood and Interactive Neighborhood - NBCi offers such free Web services as search and navigation, shopping, a directory of Web sites, home page building, downloadable software, message boards and email. NBCi also showcases innovative NBC content, including: select full motion video programming, original extensions of NBC shows that include robust sites for "Saturday Night Live" and "The Tonight Show with Jay Leno," and localized community guides through local NBC owned and affiliated stations and their Web sites.