MINNEAPOLIS--(BUSINESS WIRE)--April 10, 2001--

Retail Revelations(TM) Software Directly Impacts Guitar Center's

Increased Direct Response Division 2000 Annual Revenue

Net Perceptions, Inc. (Nasdaq:NETP) today announced that Guitar Center (Nasdaq:GTRC), the nation's leading retailer of music gear, and its wholly owned subsidiary, Musician's Friend, have attributed Net Perceptions Retail Revelations(TM) technology with helping to increase e-commerce and catalog sales by 60% in 2000.

Since the first quarter of 2000, Guitar Center's direct response division, Musician's Friend, which is the largest direct response retailer in the U.S. musical instruments industry, has exclusively used Net Perceptions real-time, 1-to-1-personalization technology on its Web site (www.musiciansfriend.com).

"Last year, catalog sales increased 32 percent while Internet sales increased by 170 percent," said Eric Meadows, director of Internet, Musician's Friend. "Net Perceptions clearly played a role in helping deliver that uplift. Net Perceptions helped us generate a substantial increase on items per order year-over-year."

Guitar Center directly cited Net Perceptions as a major contributor to the increased revenues of its direct response channel in the company's annual report on form 10-K filed with the Securities and Exchange Commission on March 15, 2001.

"Net Perceptions just keeps getting better. We've been able to implement several enhancements, including using data on the items customers return, to refine and increase the exactness of the recommendations. No other product even competed with Net Perceptions functionality," concluded Meadows.

As musicians ranging in capability from beginner to seasoned professional navigate Musician's Friend online, placing items in their shopping carts, Net Perceptions offers additional product suggestions. The recommendations are based on insight into the individual's personal product and music tastes combined with established business rules that leverage knowledge about product relationships, profit margins, overstock conditions and more. In addition, the Musician's Friend merchandising staff uses Net Perceptions recommendations to help determine which of the more than 20,000 products available via musiciansfriend.com should be featured in their catalogs.

"Customer satisfaction is at the forefront of everything we do," said Steve VanTassel, Net Perceptions, senior vice president, Products. "Helping Musician's Friend meet their business objectives across multiple channels is a great example of the return on investment and measurable value we are providing our retail customers."

About Guitar Center and Musician's Friend

Guitar Center is the nation's leading retailer of guitars, amplifiers, percussion instruments, keyboards and pro-audio and recording equipment. The company presently operates 83 stores in 44 major markets and four stores in secondary markets across the United States. Guitar Center is also the largest direct response retailer of musical instruments in the U.S. through its wholly owned subsidiary, Musician's Friend, Inc. Currently, Musician's Friend offers more than 20,000 products in its mail order catalogs and on its Web site, musiciansfriend.com. Products offered include guitars, basses, keyboards, percussion, amps, as well as recording, mixing, lighting, and DJ gear. More information on Guitar Center and Musician's Friend can be found by visiting the companies' Web sites.

About Net Perceptions

Net Perceptions is a leading provider of precision merchandising and personalization infrastructure software that allows companies to translate insight into profitable business action. Its products integrate and analyze information about customers, products and promotional activity, enabling companies to improve their marketing, merchandising and advertising effectiveness. Customers include market leaders such as Best Buy, GUS, J.C. Penney, Kmart and Tesco. For more information visit http://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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