Intel And CMG Information Services, Inc. To Collaborate On The Internet

Intel Agrees to Acquire 4.9 Percent Ownership Stake In CMG

ANDOVER, Mass. and SANTA CLARA, Calif., Dec. 8, 1997 - CMG Information Services, Inc. (NASDAQ: CMGI) and Intel today announced that Intel has agreed to purchase a 4.9 percent ownership in CMG, subject to certain customary terms and conditions. Terms of the transaction have not been disclosed. CMG invests in and integrates advanced Internet, interactive media and database management technologies.

The two companies will explore business opportunities on the Internet within CMG's portfolio of majority-owned affiliate companies including ADSmart, Engage Technologies, InfoMation, Planet Direct, Navisite Internet Services and The Password. As an example, the companies will collaborate on Engage Technologies's Internet user profiling technology so that richer, more impactful advertising and web presentation can be targeted at users of the most powerful microprocessors.

"We are excited by Intel's decision to become a strategic investor in CMG. We believe Intel's and CMG's objectives with respect to the Internet to be very complementary", said David Wetherell, CMG president and CEO. "Intel's investment in CMG is a key milestone in our growth as we continue to expand the usefulness of the Internet".

"We welcome the opportunity to collaborate with CMG in making the Internet one of the most effective mediums for delivery of interactive advertising, content and services", said Avram Miller, Intel VP of business development. "CMG has demonstrated great competency in developing new consumer applications which grow the market for personal computing".

About CMG
CMG Information Services, Inc. (NASDAQ: CMGI) (HTTP://WWW.CMGI.COM) invests in and integrates advanced Internet, interactive media and database management technologies. CMG's Internet Group is made up of six majority-owned subsidiary companies including: Planet Direct - a Web based, personal online information service; InfoMation - provides products which, using sophisticated filtering, sharing and publication mechanisms, solve the problem of information overload for corporations; ADSmart - centralized advertising distribution, advertising campaign management and planning for interactive media; Engage Technologies - delivers enterprise-class software systems solutions that assist in creating personalized marketing environments on the Web; and Navisite Internet Services -- provides hosting and Internet server management to companies that depend on the Internet as a critical business tool. CMG also includes SalesLink and CMG Direct as majority-owned subsidiaries.

In addition to the CMG Internet Group, the company's @Ventures investment and development affiliate has significant interests in Lycos, Inc. (NASDAQ: LCOS), blaxxun, Vicinity, GeoCities, Parable LLC, Reel.com, PlanetAll, KOZ, Silknet, Chemdex, Speech Machines and Softway Systems.

Corporate headquarters is located at 100 Brickstone Square Andover, MA 01810. Telephone 978.684.3600. Fax 978.684.3674. Additional information is available on the company's Web site located at http://www.cmgi.com.

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