xact 10-20

Blue Chip Client Base

Email Marketing Solutions

The OfferingIssuer: Exactis.com

Shares: 3.8 million

Offering Range: $13.00 to $15.00

Ticker/Exchange: XACT / NASDAQ

Underwriters: Thomas Weisel Partners LLC, Perry Boyle

Dain Rauscher Wessels, Mitch Bartlett

Wit Capital Corporation, Jordan Rohan

Expected Pricing: Week of November 15, 1999

E. Thomas Detmer, Jr.

President and Chief Executive Officer

What is Exactis.com?

Investment Highlights

• Tremendous email market opportunity• Superior proprietary technology• Comprehensive suite of solutions • Market share leader in email delivery • Attractive long-term business model• Experienced management team

Combining Internet and Email Growth…

Source: Jupiter Communications Source: Forrester ResearchSource: Electronic Mail & Messaging Systems

28.8% CAGR

1998 2002

543mm

197mm

142.2% CAGR

1997 2002

250B

3B

14.2% CAGR

1998 2002

131mm

77mm

U.S. Web Users Worldwide Email Boxes U.S. SolicitedCommercial Emails

…with Internet-based Direct Marketing

1998 2003

Source: Direct Marketing Association

54.6% CAGR

5.3B

0.6B

Why Email?

Source: Jupiter Communications

Postal MailEmail

Cost Effective $0.01–$0.25 $1.00–$2.00per email per piece

InstantaneousCommunication

Higher Response Rates

2 days 6–8 weeks

5.0%–15.0% 0.5%–5.0%

CustomerEmail

Internet

Response

User

EmailEngine

Database

Content/SchedulingContent

List

Mechanics of Sending EmailClient

AccountManageme

nt

Program Setup

System Web

Interface

Client

AccountManageme

nt

Program Setup

System Web

InterfaceCustomer

Email

Internet

Response

User

EmailEngine

Database

Content/SchedulingContent

List

Reporting

Intelligent queuing and flow control

Email sending

production engine

Scalability

Superior Proprietary TechnologyModular

hardware and

software design

How We Make Money

• Revenue streams based on:– Fees per email message – Hourly engineering fees ($150+)

• Recurring revenue from annual contracts

• Value-added services in development

TargetcastOne-to-one marketing message to many people

Offers and promotions

Encourage purchasing behavior

$15 - $30

Our Services

Broadcast Same message to many people

News and information

Customer retention and loyalty

$3 - $10

Microcast Personalized message to one person

Event-driven communications

Fast, low-cost communication

$5 - $20

Service Objective PurposeContentPrice/

thousand

Challenge: Needed same day delivery of electronic newsletter

Solution:Custom Broadcast using graphically designed and delivered rich HTML format

Email Volume:3.7 million/month

Newsletter Case Study

Challenge: Needed fast electronic transaction notifications

Solution:Designed Microcast using text mail format and custom template

Email Volume:2.5 million/month

Confirmation Case Study

Promotion Case StudyChallenge: Needed fast execution of targeted direct response campaigns

Solution:Designed Broadcast with custom formatting and targeted lists

Email Volume:2.3 million/month

The Exactis.com Value Proposition

Scalable

Comprehensive suite of solutions

Custom tailored solutions

Superior account management

Why We Win

Comprehensive suite of solutions

Custom tailored solutions

Scalable

Blue Chip Client Base

Strategic Client Relationship

• InfoBeat online newsletter• Editorial services and targeted ads• New product development• 3-year agreement through 2001• Send 5.0 million messages per weekday

Ad Servers/Networks

Email Marketing &

Delivery

Email Box

HostingInbound

EmailOpt-in

Email ListsLoyalty

eMarketers

Emarketing Landscape

Critical PathMail.comUSA.Net

BrightwareeGainKana

FlycastLifeMindersNetCreationsYesMail

CybergoldMyPointsNetcentivesWebstakes

AdforceDoubleClickEngageFlycast24/7 Media

Exactis.comDigital ImpactMedia SynergyMessageMediaTumbleweed

Competitive Landscape - Scalability

10.0

7.4

3.6

1.6

1.2

Experian

Exactis.com

MessageMedia

Digital Impact

Media Synergy

Offline World

Online World

Based on company estimates

Average Daily Message Volume(Millions)

Exactis.com MessageMedia Digital Impact Media Synergy TumbleweedNews &

information

Email ad serving

Primary service

Event-drivencommunications

Competitive Landscape - Services

Targetedmarketing

Secure delivery Web

In developmentSecondary service

Growth Strategies• Broaden suite of email services: Targetcast• Extend industry-leading technologies• Increase direct and indirect sales efforts• Develop and leverage strategic relationships• Acquire new businesses and technologies

Targetcast

• Targeted email marketing solution • Audience targeting, campaign

management and response analysis• Perpetual software license

Planned Services and Features

SecureEmail

•Encrypted email messages

•Send confidential information

•Lower costs than postal mail

*Service currently provided to InfoBeat

Features BenefitService

Ad Serving* •Banner ads within email messages

•Generate revenue for client

Customcast* •Customized by consumer

•Relevant content likely to be read

Targetcast•Targeted

one-to-one marketing

•Cheaper, faster, better than traditional methods

Price/thousand

$15 - $30

$15 - $30

$1 - $3

$5 - $20

Management Team

E. Thomas Detmer, Jr. 21 Experian, Metromail, President and Chief Executive Officer NDL/Polk

Kenneth Edwards 17 Experian, Metromail, Chief Financial Officer CT Publications

Cynthia Brown 18 Anova Partners, System One VP Engineering Tandem, Data General

Michael Rosol 16 XVT Software, Datasonix VP Sales

Gregory Schneider 14 Hewlett-Packard VP Marketing & Business Development

Name & Title Experience Years

Kenneth Edwards

Chief Financial Officer

Financial Highlights

• Rapid revenue growth• Recurring revenue streams• Sony Music/InfoBeat• Strong balance sheet• Attractive long-term business model

Email Messages Sent

213256 276

318360

439505

Q1 '98 Q2 '98 Q3 '98 Q4 '98 Q1 '99 Q2 '99 Q3 '99

Includes all InfoBeat messages

(Millions)

Quarterly Revenue Growth

0.050.10

0.300.37

0.50

0.84

1.00

Q1 '98 Q2 '98 Q3 '98 Q4 '98 Q1 '99 Q2 '99 Q3 '99

1.261.41

1.58

Q1 '99 Q2 '99 Q3 '99

Revenue excluding Sony($ Millions)

Sony/InfoBeat Revenue ($ Millions)

Pro Forma Balance Sheet

Cash $557 $9,381 $54,692

Working capital (453) 8,371 53,682

Total assets 6,793 15,617 60,928

Deferred revenue 5,890 5,890 5,890

Total debt 979 979 979

Stockholder’s equity(17,791) (17,791) 55,068

June 30, 1999Actuals

After Series EOffering

AfterIPO

Pro-forma Balances($ Thousands)

Long-term Business Model

Gross Margin 87.6% 88-90%Operating Expenses:

Marketing & Sales 29.5% 25-28%Research, Development and Engineering 96.5% 16-18%General & Administrative 36.0% 10-12%Depreciation/Amortization 16.8% 10-12%

Operating Margin/(Loss) (91.2%) 20-25%

Q2 1999Actuals

Long-termGoals

Why Exactis.com?

• Tremendous email market opportunity• Superior proprietary technology• Comprehensive suite of solutions • Market share leader in email delivery• Attractive long-term business model• Experienced management team

Email Marketing Solutions

Marketing and Technology Process•Strategy•Addresses•Content

•Email Production and Delivery

•Subscription Management

•Reporting — Open Mail, Click Through, Bounced Mail

•Segmenting•Cell Testing —

Offer/Audience