CMGI’s Rock’n’Rolls with Instant Messaging

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Event Summary

WOBURN, Massachusetts, and DENVER, Colorado February 2000 - iCAST, an online entertainment company, and Tribal Voice, a leading provider of co-branded instant messaging and interactive communications, both majority-owned operating companies of CMGI, Inc. (NASDAQ: CMGI), announced the availability of a preview version of iCASTER, a next-generation multimedia player with integrated online presence detection and interoperable instant messaging - enabling entertainment fans to play, share and communicate around multimedia with one application.

Market Impact

Icast, a CMGI company, has released a beta version 1.0 of iCaster. iCaster is a multimedia software component which allows for Audio and Video capabilities and has integrated Tribal Voice's PowWow Instant Messaging Service. The software is expected to allow millions of users worldwide to communicate via Instant Messaging (IM).

The software is targeted at the booming Internet entertainment industry, and takes the standard multimedia application to the next level, through the integration of Instant Messaging. The IM product will interact with AOL, Microsoft, AT&T, and Tribal Voice users. iCast hopes to build a large Internet based community through the appeal of user generated multimedia in conjunction with mainstream 'Hollywood' media.

Icast is the only entity within the Instant Messaging space to combine messaging with media. We believe competition will be fierce from the joint venture of AOL and Time Warner, which when put together, have the ability to destroy iCaster.

We expect that iCaster will be a hit among home user Netizens during the short term, but will lose considerable client base when competition from AOL/Time Warner begins by the end of the 4th quarter (probability 65%).

User Recommendations

If you love Instant Messaging and are either a music or video fan, will appeal to you.

We recommend waiting for the next release of iCaster to verify that any existing bugs have been resolved prior to installation on your system. Users should enjoy the ability to share music with a dash of Instant Messaging tossed in.

We believe iCaster has the ability to reach 40 million Internet users, which is down from iCast's estimation of 60 million due to AOL's action to disallow iCaster Instant Messaging from linking to AOL's Instant Messenger. However, attracting and retaining 40 million users will take 2-3 years (probability 80%).

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