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MessageMedia Acquires Revnet Systems, Inc.

HomeTransactionsMessageMedia Acquires Revnet Systems, Inc.

Acquisition the Latest Step In MessageMedia’s Consolidation Strategy

BOULDER, COLO – July 27, 1999 — MessageMedia Inc. (NASDAQ: MESG), a leading provider of e-mail-based customer relationship management and direct marketing services, announced today that it has acquired Revnet Systems, Inc. of Huntsville, AL. The transaction is to be accounted for as a purchase. Based on Monday’s closing price, the company will issue approximately 4 million shares of MessageMedia common stock for 100 percent of the outstanding interests in Revnet Systems.

Revnet Systems (http://www.revnet.com ), established in 1994, is a leading developer and supplier of advanced e-mail marketing software and services. Its suite of database-enabled e-mail list management products and services is used by hundreds of organizations in 35 countries worldwide for the high-speed delivery of targeted, personalized e-mail.

“The Revnet Systems acquisition is integral to our consolidation strategy,” said Larry Jones, president and CEO of MessageMedia. “By adding Revnet’s impressive client base and world-class suite of database-enabled e-mail list management software and services to the MessageMedia portfolio we are expanding our product and service offerings in a rapidly growing market, and gaining an additional roster of attractive clients.”

Stuart Obermann, president and CEO of Revnet, will take on a new role as vice president of commercial software products for MessageMedia. He will be responsible for the continuing development and enhancement of MessageMedia’s robust suite of software products.

About Revnet Systems

Revnet Systems specializes in direct e-mail marketing software. Revnet’s suite of products includes UnityMail for personalized, targeted marketing at the enterprise level, GroupMaster for easy-to-use, web-enabled e-mail lists, and MailKing for personalized e-mail from a desktop PC. UnityMail is used by EDS, Mirage Resorts, Biztravel.com, Universal Studios, the Wall Street Journal, Staples, Ingram Micro, 3M and similar organizations for e-mail communications. Revnet’s e-mail outsourcing service, Revnet Express, provides remote access to the UnityMail backend and is used by over 175 companies, including CNBC, Sony Entertainment, BancBoston Robertson Stephens, NBC.com, Carnegie Hall, New Line Cinema, the New York Yankees and others.

Revnet is represented in this transaction by Legacy Capital Fund, Inc. a New Orleans based investment banking firm.

About MessageMedia Inc.

MessageMedia (NASDAQ: MESG) is a leading provider of e-mail-based customer relationship management and direct marketing services. The Company offers a comprehensive suite of outsource messaging services for information delivery, e-commerce services, permission-based direct marketing and ongoing customer communications using industry standard Internet protocols. MessageMedia’s customer portfolio includes clients from the financial services, publishing, direct marketing, retailing and electronic commerce industries. Clients include E*TRADE, Reader. s Digest, GeoCities, Intuit, CMP Media, Yahoo!, Barclays Bank and Bertelsmann.

SOFTBANK and its affiliates own approximately 49% of the outstanding common stock of MessageMedia Inc. Pequot Capital Management, a Connecticut-based research-intensive investment firm with more than $5 billion in assets under management, is also a major investor in MessageMedia.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act. With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties. These risk factors include, but are not limited to, the integration of a new senior management team, MessageMedia’s limited operating history, the integration of recent acquisitions, risks associated with pending and future acquisitions, the anticipated fluctuations in operating results, the uncertain acceptance of new services being offered, and undeveloped and rapidly changing market and other factors detailed in MessageMedia’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1998 and its most recent Quarterly Report on Form 10-Q. All companies and product names are trademarks of their respective owners. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. MessageMedia undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.