Internet Appliance Network (IAN) Announces Joint Venture With Virgin Entertainment Group
Partnership Will Provide Customers With the Ultimate Web Experience

New York, NY (December 6, 1999) - Internet Appliance Network (IAN) (internetappliance.net), the first company to turn Web-enabled hardware into marketing solutions, today announced a joint venture with the global music retailer Virgin Entertainment Group. According to the agreement, IAN will supply and distribute thousands of Internet appliances to selected customers of the Virgin Entertainment Group.

IAN has taken Web appliances to the next level by making Internet hardware the most advanced marketing tool available. IAN lets brands provide their customers with a complete Internet experience by being both private portal and Web access provider, instead of relying on traditional banner ads and online promotions. Virgin, and other brand partners to come, will distribute the device to consumers, giving them a PC alternative to surfing, sending and receiving emails, and a way to purchase products online with customized account functionalities - constructing the strongest Web branding and customer retention program ever.

In early 2000, select Virgin customers will get a flat-screen Internet device complete with Virgin branding, called Webplayer™ from Virginconnect™. Virginconnect boasts a fully integrated plug-and-play Internet access platform, 56k/v90 access, a Virgin branded custom interface, complete online shopping ability and Virgin loyalty program benefits. Customers will be able to buy Virgin Megastore Online products with the device and, for additional purchasing convenience, the device will store each customer's billing information with the Qpass e-commerce service for use at any website. A comprehensive customer support program will also make the IAN platform a direct bridge between Virgin and their customers. Bricks and mortar Virgin Megastores retail will set aside space in stores to promote the Virginconnect pervasive computing device.

"Virgin has created one of the strongest brand names worldwide and this partnership illustrates IAN's ability to turn hardware into media," explained Seth Goldstein, founder of IAN. "For the first time, companies have the ability to actively participate in their customers' online experiences, as both access provider and private portal."

"IAN has created a way for Virgin to package our customers' specific interests and preferred information and present it all in one place on the Web," explained Russ Pillar, CEO of Virgin Entertainment. "This service is the perfect way for Virgin to reward our customers, and give them easy access to the products they want."

"The surge of dotcom companies has made it difficult for corporations, large and small, to distinguish themselves on the Web," said Richard Branson, CEO of Virgin. "No other marketing plan can put the brand online and in front of the consumer more clearly. With IAN's help, Virgin once again has proven itself to be the most progressive retailer in its class."

Virgin Entertainment plans to begin distribution of the Webplayer from Virginconnect to preferred customers in the United States in early 2000. These first generation devices are being delivered through a strategic partnership with Boundless Technologies (www.boundless.com), suppliers of media-rich, Internet appliance solutions.

ABOUT INTERNET APPLIANCE NETWORK
IAN (www.internetappliance.net) gives companies an opportunity to actively participate in customers' online experiences, as both access provider and private portal, through consumer branded hardware and marketing services. IAN has also incorporated loyalty program, e-commerce, content links and secure e-wallet functionalities for end-users, serving as a means for consumers to access the Web and ­ within a persistent, active frame ­ a continuous guide to wherever they surf.

IAN is the first company to be incubated by New York's Flatiron Partners. IAN is forming marketing partnerships with selected consumer brands searching for a way to offer customers a turnkey e-commerce solution.

ABOUT VIRGIN ENTERTAINMENT GROUP
Virgin Entertainment Group provides consumers with a range of superior entertainment experiences through a family of integrated Virgin-branded businesses. The "category killer" Virgin Megastores and the Virgin Megastore Online at www.virginmega.com are integral parts of a strategy to get consumers who are looking for music, books, video, software, and other entertainment content what they want, how they want it, when they want it.

Editors: All company/product names and service marks may be trademarks or registered trademarks of their respective companies.

For More Information About IAN
Contact: Nicki Gladney or Mike Prichinello of RLM PR
Tel: 212.741.5106
Email: mike@yeahwhatever.com

For More Information About Virgin Entertainment
Contact: Vicky Nave of Paine & Associates Public Relations
Tel: 310.887.0700
Fax: 301.887.0717

For More Information About Richard Branson
Lori Levin-Hyams, Vice President, Corporate Affairs
Tel: 609.897.7865

 

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"IAN" and (all marks which appear) are service marks of Internet Appliance Network, Inc.