Netzero and Global Sports Team Up to Offer Free Internet Service
WESTLAKE VILLAGE, CALIFORNIA, and KING OF PRUSSIA, PENNSYLVANIA NETZERO, INC. (NASDAQ: NZRO), a leading provider of free Internet services, and GLOBAL SPORTS, INC. (NASDAQ: GSPT), a leading developer and operator of e-commerce sporting goods businesses, today announced the formation of a strategic alliance. Under this agreement, NetZero will create five customized, free ISP services that are uniquely branded for certain Global Sports retail partners. The retail partners include Dunhams Sports, MC Sports, Oshman’s Sporting Goods, Sport Chalet, and The Athlete’s Foot.
Each of the distinct custom-branded ISPs will feature significant advertising and integration of the particular retailer’s e-commerce brand, including prominent logos that link directly to that retailer’s Web site as well as twelve text links leading to different parts of the retailer’s Web site. Through the alliance, these retailers brands become points of entry to the Internet for sporting goods consumers, creating valuable brand awareness for these retail partners Web sites. Furthermore, the deal between NetZero and Global Sports provides significant advertising for Global Sports partners Web sites and has the potential to increase sales for Global Sports.
The retailers in the program will be aggressively promoting the new ISP in their stores via point-of-purchase displays, in-store signage, window displays, and print advertising, such as integration in weekly newspaper circulars. In the aggregate, the five retail partners have approximately 750 retail locations nationwide and attract more than 100 million visitors per year. The in-store displays will feature free CD-ROMs, through which consumers can initially access the free Internet service. Global Sports will also be promoting the free Internet services through these retailers e-commerce Web sites, which Global Sports develops and operates. The program is expected to rollout in the third quarter of this year.
Mark R. Goldston, Chairman and CEO of NetZero, said, These retailers are some of the biggest players in the sporting goods industry. This new alliance, the first major initiative of our new NetZero custom-branded unit, will open up a new and valuable audience for NetZeros free Internet access service. In addition, by creating distinct custom-branded ISPs for each of the retailers in the program, the retailers are able to stay top-of-mind with consumers even after they leave their stores.
Michael G. Rubin, Chairman and CEO of Global Sports, commented on the alliance with NetZero, stating, This deal with NetZero allows Global Sports to provide these retail partners with an exciting consumer benefit and an innovative branding opportunity. These retailers are now able to offer their customers a valuable premium for shopping with them. Moreover, the free custom-branded ISP service now makes it even easier for sporting goods consumers to access their favorite sporting goods retailers over the Internet.
The alliance between NetZero and Global Sports broadens both parties commitment to sports. NetZero has proven its dedication to serving sports fans through its title sponsorship of all NBA on NBC National Basketball Association telecasts, branded “NetZero @ the Half,” and through its partnership with Pagan Racing and the entrance of the new Team NetZero driven by Richie Hearn at the Indianapolis 500. Through this alliance with Global Sports, NetZero is enabling consumers across the country to access the Internet while staying connected to their favorite sport. Global Sports is affirming its interest in reaching sports enthusiasts by offering them access to a valuable Internet service through their favorite sporting goods store and via a partner with a deep interest in serving sports fans.
About NetZero
NetZero, Inc. is a leading provider of advertising and commerce-supported Internet access offering a broad range of interactive marketing, research and measurement solutions. NetZero offers consumers free access to the Internet, free e-mail and customizable navigation tools that provide “speed dial” to key sites on the Internet.
Through proprietary technologies, NetZero offers advertisers unique targeting capabilities through numerous online advertising and sponsorship channels. The company’s CyberTarget division offers marketers and advertisers mass-scale, online market research and measurement services. NetZero is a Cisco Powered Network, providing its access services to more than 4 million registered users in 3,000 cities across the United States. More information about the company is available at www.netzero.net.
About Global Sports
Global Sports, Inc. (NASDAQ: GSPT) (www.globalsports.com) is a leading developer and operator of e-commerce sporting goods businesses. Global Sports develops and operates the e-commerce sporting goods businesses of specialty retailers, general merchandisers, Internet companies, and media companies under exclusive long-term agreements. The Company’s current partners include BlueLight.com (www.bluelight.com)—the exclusive e-commerce partner for Kmart, Broadband Sports (www.broadbandsports.com) and its AthletesDirect subsidiary (www.athletesdirect.com) Dunham’s Sports (www.dunhamssports.com), Healtheon/WebMD (http://store.webmd.com), MC Sports (http://www.mcsports.com), Oshman’s Sporting Goods (www.oshmans.com), Sport Chalet (www.sportchalet.com), The Athlete’s Foot (www.theathletesfoot.com) and The Sports Authority (www/thesportsauthority.com).
This announcement may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, NetZero’s ability to develop, market and sell new products and services; its unproven business model and limited operating history; the company’s ability to grow its user base, generate advertising revenues and decrease telecommunications costs; the effects of competition for users and advertisers; the loss of key customers; technological problems or developments; and governmental regulation. More information about potential factors that could affect the company’s business and financial results is included in the company’s Form 10-Q and other filings with the Securities and Exchange Commission including (without limitation) information under the captions “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors.” NetZero, Defenders of the Free World, the NetZero logo, zCast and The ZeroPort are trademarks of NetZero, Inc. All other names are trademarks and/or registered trademarks of their respective owners.
Statements about Global Sports’ outlook and all other statements in this release other than historical facts are forward-looking statements. Since these statements involve risks and uncertainties, they are subject to change at any time and Global Sports actual results may differ materially from expected results. Many Global Sports forward-looking statements are based upon certain assumptions, and there are inherent difficulties in predicting certain important factors that could impact these assumptions. These factors, as and when applicable, are discussed in Global Sports filings with the SEC.
Contact:
Global Sports Contact:
Dana Stein Grosser
Director of Corporate Communications
(610) 491-7000
grosserd@globalsports.com
Netzero Contact:
Liz Gengl
Vice President, Public Relations
(805) 418-2076
egengl@corp.netzero.net
