MINNEAPOLIS--(BUSINESS WIRE)--Sept. 5, 2000--Net Perceptions, Inc (Nasdaq:NETP), a leader in precision merchandising and personalization software, today announced that Kmart Corporation (NYSE:KM) has selected its Commerce Solutions advertising and merchandising analytic solution. The unique software is used by retailers to deliver detailed insights into product sales performance and forecast the profitability of advertising and promotions.

Using Net Perceptions' advertising and merchandising software retailers can see for the first time precisely how advertising dollars are working, and improve their ability to forecast the results of specific ads. This forecasting ability extends not only to the specific products that are advertised, but also shows the carryover effect on non-advertised items as well.

"This win illustrates Net Perceptions' growing reputation as a world-class developer of highly scaleable and sophisticated merchandising solutions designed for the world's largest multi-channel retailers," said Steven Snyder, Net Perceptions president and CEO. "We are the only company that offers technology that helps solve many of retails' toughest, most enduring advertising and merchandising questions.

"Net Perceptions has rapidly evolved from our leadership position in personalization, to helping retailers optimize performance across the entire merchandise lifecycle, from planning and buying to pricing and promotion." About Net Perceptions Commerce Solutions

Net Perceptions Commerce Solutions software helps businesses better understand the relationships between the key aspects of every transaction - customers, products and promotions. Through its unique precision merchandising software, businesses are able to transform available data into profitable action across every point of customer contact, whether through Web sites, stores, call centers, advertising or wireless interaction. Customers include many of the world's best-known brands: Best Buy.com, eToys.com, Fingerhut, J.C. Penney and Walgreens. About Net Perceptions

Net Perceptions is the innovator and preeminent supplier of solutions that allow companies to translate knowledge into profitable business action. Its Commerce Solutions, Network Solutions and Knowledge Solutions products enable clients to capitalize on business information and optimize product assortments, pricing, customer relationships and intellectual capital. The company is based in the U.S. and has offices in six other countries. For more information visit www.netperceptions.com or call 800-466-0711. Net Perceptions and Net Perceptions logo are registered trademarks of Net Perceptions, Inc. 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.

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