MINNEAPOLIS--(BUSINESS WIRE)--Jan. 10, 2002--Net Perceptions, Inc. (Nasdaq:NETP), a pioneer in the development of Intelligent Demand Generation(TM), today announced that Lowe's Cos. Inc. (NYSE:LOW) has selected Net Perceptions(R) Advertising Advisor(TM) solution to enhance the efficiency and performance of its print circular advertising programs.

The nation's 14th largest retailer, Lowe's is in the midst of an aggressive expansion effort that includes opening approximately 123 new stores in 2002. The company's rapid growth requires it to communicate with new customers across the country through advertising circulars that are relevant to people in markets from Connecticut to California and from Maine to Hawaii.

"As Lowe's moves forward with our expansion plans, we need to optimize our promotional print advertising to encourage customers to visit the stores often and make purchases for their home improvement projects," said John Mitchell, vice president of merchandising and marketing systems at Lowe's. "Net Perceptions Advertising Advisor is designed to address our needs as we continue to grow."

Lowe's selected Net Perceptions Advertising Advisor because it provides a standard set of analytic tools to determine the best combination of products to be advertised in a given market.

"We're very excited to see our relationship expand significantly with a world-class company like Lowe's," said Don Peterson, president and CEO of Net Perceptions. "Partnering with them on this significant effort illustrates Net Perceptions' success in building on existing relationships within our blue chip customer base. Clearly, Lowe's recognizes the benefits our solutions deliver in helping them better serve their customers and more intelligently generate demand for their products."

Lowe's has worked with Net Perceptions since 1998, using its Business Intelligence Engine (formerly known as Retail Discovery Suite), which provides insight into customer buying habits and ways to more effectively market to the company's best customers.

About Net Perceptions Advertising Advisor

Net Perceptions Advertising Advisor analyzes detailed information about all transactions across a retailer's operation to assess the overall impact of newspaper circular advertising on total product sales, market basket size, margin mix and store traffic. Advertising Advisor's advanced technology enables merchants to spend less time on analytical activities while substantially increasing the yield on their circular advertising investment. Since its introduction in April 2000, Net Perceptions Advertising Advisor has enjoyed deployment among such top-50 U.S. retailers as Eckerd Inc., Kmart Corp. and J.C. Penney Company Inc., in addition to Lowe's.

About Lowe's

With 2000 sales of $18.8 billion, Lowe's Cos. Inc. is the 14th largest retailer in the United States as well as the 34th largest retailer worldwide. Headquartered in Wilkesboro, N.C., Lowe's and its 100,000 associates are Improving Home Improvement at more than 740 stores in 42 states. More information can be found by visiting or shopping lowes.com.

About Net Perceptions

Net Perceptions provides Intelligent Demand Generation(TM) solutions that drive demand, build loyalty, grow revenue and increase profitability. Its Retail Revelations suite of software and services measurably improves merchandising, marketing and advertising effectiveness by providing actionable insight into product, promotion and customer interactions. Founded in 1996, Net Perceptions is headquartered in Minneapolis and has offices throughout the United States and in Europe. Customers include market leaders such as Brylane, GUS (Great Universal Stores), J.C. Penney, Kmart and Tesco. More information can be found at ../../ or by calling 800/466-0711.

Net Perceptions and the 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 filings with the U.S. Securities and Exchange Commission.