FAIM and EBAY:
FairMarket, Inc. Signs Exclusive Loyalty Marketing Agreement with eBay
WOBURN, Mass., Apr 23, 2002 (BUSINESS WIRE) -- FairMarket, Inc. (Nasdaq: FAIM), a provider of private label, Internet-based marketing and commerce solutions that incorporate dynamic pricing, announced an exclusive agreement with eBay, the world's online marketplace(TM), to run loyalty marketing programs for third parties.
eBay will offer points-based loyalty marketing programs that enable companies to interact with their customers and the eBay community in a creative and compelling way. Under this unique relationship, eBay will lead the sales and marketing efforts of these programs, which offer the power and flexibility of FairMarket's technology platform, services and expertise. The loyalty programs are designed to drive off-line sales by rewarding consumers for product purchases or other activities. Points can be distributed either on a product's physical packaging, or electronically added to customers' accounts once earned from services such as credit cards, long distance service or air travel. Points are redeemed in online auctions for cool prizes, items or events.
"Our expanded relationship with eBay combines the power and flexibility of our promotional platform with one of the largest and most active communities on the Internet," said Nanda Krish, President and Chief Executive Officer of FairMarket. "We will be working closely with the eBay team to market this service to large national brands that are looking to create unique and effective loyalty programs."
An example of this type of program is the loyalty marketing program that eBay is testing in Erie, PA and Albany, NY with Burger King Corporation using the FairMarket platform. Under the BK REWARDS(SM) loyalty program, when customers at BURGER KING(R) restaurants purchase a medium, large or king size order of hot, crispy French fries, they earn "points" which can then be deposited and used to bid on reward items up for grabs on bkrewards.com. Rewards are divided into three tiers, providing a wide range of items to choose from, including clothing, books and CDs in tier one, to TVs, stereos and DVDs in tier two, to experiential rewards like ski vacations, trips to rock concerts, a day at the spa, and more, in tier three.
"With our BK REWARDS(SM) program, we believe we have found an innovative way to build customer satisfaction and loyalty," said Rick Dow, senior vice president marketing and sales, Burger King Corporation. "We look forward to rolling this program out nationally later this year to give our customers extra value at BURGER KING (R)"
"Loyalty programs are a very powerful way for major consumer brands to interact with eBay's community of 46 million registered users," said Bill Cobb, eBay's senior vice president for global marketing. "Teaming up with FairMarket enables us to extend this unique capability to a wide range of companies looking to develop and reward customer loyalty."
About FairMarket, Inc.
FairMarket provides technology and services that help businesses harness online efficiencies to speed the rate of sales and maximize price margins on excess inventory. FairMarket's customers include Dell, CompUSA and SAM'S CLUB. Headquartered in Woburn, Mass., FairMarket also has offices in the U.K. The company can be reached at 800-531-7871 or on the Web at www.fairmarket.com.
FairMarket is a registered service mark, and the FairMarket logo is a service mark, of FairMarket, Inc. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
This press release contains information about future expectations, plans and prospects of FairMarket, Inc. that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including but not limited to market acceptance of FairMarket's online auction and other e-commerce services; growth of the market for dynamic e-commerce services; the competitive nature of the online markets in which FairMarket operates; economic conditions; FairMarket's ability to generate significant revenue to reach profitability; FairMarket's ability to attract and retain qualified personnel; FairMarket's ability to retain existing customers and to obtain new customers; the operation and capacity of FairMarket's network system infrastructure; FairMarket's ability to expand its operations in its geographic markets and the currency, regulatory and other risks associated with doing business in international markets; FairMarket's limited operating history; and the other risks and uncertainties discussed under the heading "Factors that May Affect Results of Operations and Financial Condition" in FairMarket's Annual Report on Form 10-K for the year ended December 31, 2001 and other reports filed by FairMarket from time to time with the Securities and Exchange Commission. FairMarket assumes no obligation to update any of the information included in this press release.
CONTACT: FairMarket, Inc.
Mark Sutton
mark@fairmarket.com
781-376-5839
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