e-centives Completes Acquisition of Inktomi's Commerce Division

Company Emerges as the Single Source Provider of Direct

Marketing and Distributed Commerce Infrastructure



Apr 02, 2001, 01:00 ET from e-centives, Inc.

    BETHESDA, Md., April 2 /PRNewswire/ -- e-centives, Inc. (SWX: ECEN), a
 leading developer of direct marketing infrastructure software and services,
 today announced that it has completed its acquisition of Inktomi's Commerce
 Division.  e-centives issued 2,551,700 shares of its common stock to Inktomi
 in the transaction, or approximately 14.4 %, of e-centives' outstanding common
 stock, in exchange for the assets of the Commerce Division.  Out of these
 shares, 382,755 shares will be held in escrow and will be released to Inktomi
 upon the achievement of certain performance criteria by the Commerce Division.
 Inktomi also received a warrant to purchase up to 1,860,577 shares of e-
 centives, Inc., which will be exercisable upon the achievement of certain
 additional financial targets for the Commerce Division.
     (Photo: http://www.newscom.com/cgi-bin/prnh/20000404/ECENTLOGO )
     e-centives' new commerce product offerings are designed as a scalable
 platform to provide a comprehensive decision making experience for online
 consumers.  Through the flagship Commerce Engine, consumers can access more
 than 6 million products across 20 categories, enabling them to quickly and
 easily locate products of interest, compare features and pricing, and purchase
 products through participating merchants.  The Commerce Engine integrates many
 aspects of the online commerce process, from expert advice to bargain hunting
 and comparison-shopping.
     Through this acquisition, e-centives further strengthens its position as a
 leading provider of   specialized Internet infrastructure solutions, including
 direct marketing and distributed commerce.  The combined solutions create a
 compelling collection of technologies, content, and services that provide
 Internet users with valuable, personalized tools to make better purchases
 decisions online and offline.  With this transaction, e-centives adds several
 new clients -- including AT&T, NTT, Excite UK, and The Washington Post -- as
 well as a complementary portfolio of products and services to offer existing
 clients.  e-centives also gains an immediate foothold in Europe with newly
 hired European Commerce Division employees. e-centives will operate the
 Commerce Division through newly opened offices in Silicon Valley and in
 London, England, which will be used as the platform for international
 expansion.
     "The acquisition of Inktomi's Commerce Division is one of the key elements
 in the continued extension of our capabilities," said Kamran Amjadi, chairman
 and chief executive officer of e-centives, Inc.  "We can now deliver a more
 comprehensive collection of products and services to our clients worldwide to
 provide valuable content and solutions for their customers.  This acquisition
 also brings additional top-tier talent to e-centives, which will accelerate
 the pace of our technology development and global distribution plans."
     The acquisition underscores e-centives' commitment to be a leading
 worldwide provider of specialized Internet infrastructure solutions.  The
 Commerce Engine provides scalable, turnkey commerce capabilities for companies
 in a broad range of markets including portals, destination sites, retailers,
 banks, credit card services, insurance providers, telecommunications
 providers, and wireless portals.  It is a high-performance application that
 handles the complex challenges of bringing online buyers and sellers together
 and facilitating transactions.
     In connection with this acquisition, e-centives has entered into licensing
 and distribution agreements with Inktomi.  Under the terms of the license
 agreement, Inktomi agreed to license certain technology to e-centives for use
 in the Commerce Division.  Under terms of the distribution agreement, Inktomi
 will distribute the Commerce Division's Omega product -- a unique shopping
 search technology that organizes product data as part of general search
 results.  According to Jupiter communications, nearly 40% of consumers start
 their shopping with a Web search.
     Similarly, e-centives has agreed to distribute Inktomi's Index Connect
 service, which drives Web traffic to its clients' sites via the search engine
 listings served on some of the largest portal operators on the Web.  With this
 relationship, e-centives will enable merchants and other clients to include
 product-related content in Inktomi's general search results.
 
     About e-centives, Inc.
     e-centives, Inc. is a leading developer of Internet direct marketing and
 distributed commerce infrastructure software and services.  The company was
 founded in 1996 and has established relationships with leading companies that
 represent a broad range of markets including Excite, Intuit, AT&T, and Chase
 Manhattan, as well as more than 150 leading brand-name marketers such as
 MarthaStewart.com and Circuit City.  Headquartered in Bethesda, Md., with
 offices in San Francisco, New York, and London, e-centives, Inc. is traded on
 the SWX New Market under the symbol "ECEN."
 
     Under the safe harbor provisions of the Private Securities Litigation
 Reform Act of 1995, e-centives cautions investors that any forward-looking
 statements or projections made by the company, including those that may be
 made in this press release, are based on management's expectations at the time
 they are made, but they are subject to risks and uncertainties that may cause
 actual results to differ materially from those projected.  Specifically, e-
 centives forecasts of revenue growth, membership growth, and EBITDA are
 forward looking in nature, and could differ materially from current
 expectations.  e-centives' future results may be impacted by factors such as
 general economic trends, technological changes, market acceptance of the
 company's services, e-centives ability to grow its partner network and
 membership base, and competitive market pressures.  e-centives' future results
 also may be impacted by other risk factors listed in its prospectus dated
 October 2, 2000 and periodic reports filed with the Securities and Exchange
 Commission.  By making these forward-looking statements, e-centives undertakes
 no obligation or intention to update these statements after the date of this
 release.
 
 

SOURCE e-centives, Inc.
    BETHESDA, Md., April 2 /PRNewswire/ -- e-centives, Inc. (SWX: ECEN), a
 leading developer of direct marketing infrastructure software and services,
 today announced that it has completed its acquisition of Inktomi's Commerce
 Division.  e-centives issued 2,551,700 shares of its common stock to Inktomi
 in the transaction, or approximately 14.4 %, of e-centives' outstanding common
 stock, in exchange for the assets of the Commerce Division.  Out of these
 shares, 382,755 shares will be held in escrow and will be released to Inktomi
 upon the achievement of certain performance criteria by the Commerce Division.
 Inktomi also received a warrant to purchase up to 1,860,577 shares of e-
 centives, Inc., which will be exercisable upon the achievement of certain
 additional financial targets for the Commerce Division.
     (Photo: http://www.newscom.com/cgi-bin/prnh/20000404/ECENTLOGO )
     e-centives' new commerce product offerings are designed as a scalable
 platform to provide a comprehensive decision making experience for online
 consumers.  Through the flagship Commerce Engine, consumers can access more
 than 6 million products across 20 categories, enabling them to quickly and
 easily locate products of interest, compare features and pricing, and purchase
 products through participating merchants.  The Commerce Engine integrates many
 aspects of the online commerce process, from expert advice to bargain hunting
 and comparison-shopping.
     Through this acquisition, e-centives further strengthens its position as a
 leading provider of   specialized Internet infrastructure solutions, including
 direct marketing and distributed commerce.  The combined solutions create a
 compelling collection of technologies, content, and services that provide
 Internet users with valuable, personalized tools to make better purchases
 decisions online and offline.  With this transaction, e-centives adds several
 new clients -- including AT&T, NTT, Excite UK, and The Washington Post -- as
 well as a complementary portfolio of products and services to offer existing
 clients.  e-centives also gains an immediate foothold in Europe with newly
 hired European Commerce Division employees. e-centives will operate the
 Commerce Division through newly opened offices in Silicon Valley and in
 London, England, which will be used as the platform for international
 expansion.
     "The acquisition of Inktomi's Commerce Division is one of the key elements
 in the continued extension of our capabilities," said Kamran Amjadi, chairman
 and chief executive officer of e-centives, Inc.  "We can now deliver a more
 comprehensive collection of products and services to our clients worldwide to
 provide valuable content and solutions for their customers.  This acquisition
 also brings additional top-tier talent to e-centives, which will accelerate
 the pace of our technology development and global distribution plans."
     The acquisition underscores e-centives' commitment to be a leading
 worldwide provider of specialized Internet infrastructure solutions.  The
 Commerce Engine provides scalable, turnkey commerce capabilities for companies
 in a broad range of markets including portals, destination sites, retailers,
 banks, credit card services, insurance providers, telecommunications
 providers, and wireless portals.  It is a high-performance application that
 handles the complex challenges of bringing online buyers and sellers together
 and facilitating transactions.
     In connection with this acquisition, e-centives has entered into licensing
 and distribution agreements with Inktomi.  Under the terms of the license
 agreement, Inktomi agreed to license certain technology to e-centives for use
 in the Commerce Division.  Under terms of the distribution agreement, Inktomi
 will distribute the Commerce Division's Omega product -- a unique shopping
 search technology that organizes product data as part of general search
 results.  According to Jupiter communications, nearly 40% of consumers start
 their shopping with a Web search.
     Similarly, e-centives has agreed to distribute Inktomi's Index Connect
 service, which drives Web traffic to its clients' sites via the search engine
 listings served on some of the largest portal operators on the Web.  With this
 relationship, e-centives will enable merchants and other clients to include
 product-related content in Inktomi's general search results.
 
     About e-centives, Inc.
     e-centives, Inc. is a leading developer of Internet direct marketing and
 distributed commerce infrastructure software and services.  The company was
 founded in 1996 and has established relationships with leading companies that
 represent a broad range of markets including Excite, Intuit, AT&T, and Chase
 Manhattan, as well as more than 150 leading brand-name marketers such as
 MarthaStewart.com and Circuit City.  Headquartered in Bethesda, Md., with
 offices in San Francisco, New York, and London, e-centives, Inc. is traded on
 the SWX New Market under the symbol "ECEN."
 
     Under the safe harbor provisions of the Private Securities Litigation
 Reform Act of 1995, e-centives cautions investors that any forward-looking
 statements or projections made by the company, including those that may be
 made in this press release, are based on management's expectations at the time
 they are made, but they are subject to risks and uncertainties that may cause
 actual results to differ materially from those projected.  Specifically, e-
 centives forecasts of revenue growth, membership growth, and EBITDA are
 forward looking in nature, and could differ materially from current
 expectations.  e-centives' future results may be impacted by factors such as
 general economic trends, technological changes, market acceptance of the
 company's services, e-centives ability to grow its partner network and
 membership base, and competitive market pressures.  e-centives' future results
 also may be impacted by other risk factors listed in its prospectus dated
 October 2, 2000 and periodic reports filed with the Securities and Exchange
 Commission.  By making these forward-looking statements, e-centives undertakes
 no obligation or intention to update these statements after the date of this
 release.
 
 SOURCE  e-centives, Inc.