Personalization Solution Enables Improved Care and Feeding
of the Customer Relationship

SEATTLE, Feb. 28 /PRNewswire/ -- Slogging through electronic inboxes packed with mass offers has about as much appeal to most people as opening a mailbox jammed with "You may have already won" offers. To solve this problem, Net Perceptions, Inc. (Nasdaq: NETP), a leader in enterprise-wide personalization software and services, today introduced Net Perceptions for Marketing Campaigns 2.0. Announced at the DMA net.marketing conference in Seattle, the product allows marketers to create and execute individually targeted outbound emails designed to increase profits and improve customer loyalty.

"Merely slapping the customer's name on the email makes it mechanical, not personal," said Jonathan Gaw, International Data Corp research manager, Consumer eCommerce. "To do more than pay lip service to addressing a customer's needs, an email (campaign) first has to understand what that individual wants, and leveraging tools such as collaborative filtering are a big step in that direction."

Net Perceptions for Marketing Campaigns is based on Net Perceptions' collaborative filtering personalization technology that predicts what an individual will value and makes specific recommendations accordingly. The technology analyzes behavior such as click-throughs and purchases, and continually learns with every new interaction. It is the only application that allows email marketers to create individually customized offers for each customer. These messages contain personal, relevant content for each customer that makes them far more likely to be valued rather than discarded or considered SPAM, according to Steve Larsen, Net Perceptions senior vice president.

Gene Alvarez, program director, Electronic Business Strategies META Group, Inc., noted: "When building customer relationships, one must remember that the relationship with the consumer is an invited one, placing the burden of being friendly vs. bothersome on the originator of any email marketing campaign. The critical factor to increasing click throughs, reducing opt outs and enhancing customer loyalty in an email marketing campaign is relevancy."

According to Forrester Research, Inc., the number of commercial emails will increase from 3.5 billion in 1999 to 16.9 billion in 2000 and to 47.5 billion by 2001. "I don't know about you, but the idea of getting 13 times more email than I do now does not make me happy -- which is why we're so excited about this product -- people will only get email they want," observed Larsen.

In addition to individually creating a unique message for each customer, Net Perceptions for Marketing Campaigns Version 2.0 also provides marketers with the ability to:

• Create campaigns that are automatically triggered by events such as a customer placing an order.
• Control the number of emails sent to an individual as well as ensure that customers do not receive repetitive offers.
• Select their preferred method of email delivery -- in-house or outsourced to a service bureau.

"This tool gives marketers more control and greater flexibility," said Jane Westlind, Net Perceptions director, E-commerce Solutions. "You can design a campaign, execute it and have results on its success all in a single day."

Complements New GreenLight Go! Service

Net Perceptions for Marketing Campaigns Version 2.0 is a natural complement to Net Perceptions' new GreenLight Go! service also introduced today at the Seattle DMA conference. GreenLight Go! is an ASP-delivered (Application Service Provider) service that allows the e-tailer to quickly and easily identify their most effective customers and products. This gives marketers the ideal information to determine what customers they want to target and what types of products they want to promote in their Net Perceptions for Marketing Campaigns email initiatives.

"The combination of GreenLight Go! and Net Perceptions for Marketing Campaigns illustrates the logic behind Net Perceptions' KD1 acquisition," observed Bruce Kasanoff, CEO of Accelerating1to1. "Net Perceptions is running hard to enable firms to identify at an individual level what to market, to whom, and then provide the means for acting on that information. The pot of gold at the end of the rainbow is a closed feedback loop that is both responsive to individual customers and more profitable for the enterprise."

About Net Perceptions

Net Perceptions is a leading provider of realtime personalization and precision marketing software solutions for Internet and multi-channel retailers. Our software is designed to help retailers understand customers individually, optimize product assortments, prices and inventories and offer the right product to the right customer at the right price. On February 14, 2000, Net Perceptions completed its acquisition of Knowledge Discovery One (KD1), a provider of advanced data analysis solutions for multi-channel and dot.com retailers. Net Perceptions' customers include many of the world's best-known brands including: Art.com, Bertelsmann, CDNOW, Egghead.com, eToys.com, Fingerhut, Hudson's Bay Company, J.C. Penney, Procter & Gamble, Tower Records and Walgreens. The Company was incorporated in Delaware on July 3, 1996. Our principal executive offices are located at 7901 Flying Cloud Drive, Minneapolis, Minnesota 55344, and we lease offices in our other locations, including San Francisco, California, New York, New York, Austin, Texas, Richardson, Texas, and Berkshire, United Kingdom.

Net Perceptions is a registered trademark of Net Perceptions Inc. GreenLight Go! is a service mark of Net Perceptions. All other trademarks are the property of their respective owners.

This news release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the company's limited operating history, delays in product development, development of the Internet market, changes in product pricing policies, competitive pressures and the risk factors detailed from time to time in the company's periodic reports and registration statements filed with the Securities and Exchange Commission.

SOURCE Net Perceptions, Inc.

CONTACT: Jacqueline Hanson of Net Perceptions, 612-918-1749, or cell, 612-385-3949, or jhanson@netperceptions.com; or Rich Adolph of Waggener Edstrom, 425-637-9097, or richa@wagged.com/