THIS CHRISTMAS WILL NET EUROPEAN RETAILERS 4.1 BILLION EUROS IN ONLINE
SALES, FORRESTER CALCULATES

The UK Will Lead With 1.4 billion Euros, Taking Almost 34% Of All Europe's
Online Spending

AMSTERDAM, Netherlands, 28 November 2001 . . . Despite consumer pessimism,
European online retail spending will grow this holiday season to 160% of
2000, and will total 4.1 billion euros according to a new brief from
Forrester Research B.V. (Nasdaq: FORR). The month of December alone will
see almost 25% of all European online sales for the year. UK consumers will
lead, spending 1.4 billion euros accounting for almost 34% of all online
spending in Europe, and marking a 116% in year-on-year growth.

"Despite the general reluctance to fly, many European consumers will buy a
leisure trip online this December, and travel will total 727 million euros.
Electronics is the next strongest category, and European shoppers will
spend 489 million euros on new PCs and other hardware, and 65 million euros
on consumer electronics like new DVD players," said Jaap Favier, Research
Director at Forrester.

"The number of online Europeans has grown substantially since last
Christmas ? between January and October, 24% more Germans visited the web,
31% more Brits, and 35% more French. But while few of this year's Net
newbies will buy online this Christmas ? only 12% of online users purchase
online in their first 6 months ? as experience rises, inhibitions to shop
drop, and 25% of those with one to two years experience are online shoppers
today. For instance, many of the 34% of UK consumers that had their PC
hooked up to the Net in August 2000, will make their first online purchase
this season."

But Forrester warns Europe's retailers that this is a decisive time for
their online success. With almost 25% of all this year's online consumer
shopping yet to be done in December, Europe's online retailers face a
hectic and critical month, in which they need to get fulfillment right to
win return customers. First-time online buyers have high expectations, and
on-time delivery is crucial, but most online retailers have only tested
their processes with merely half of their December sales volume. To win,
sites must hire and train tens of additional call center staff in the
coming weeks to keep up with demand.

"Also, to make consumers return in the New Year requires more than
faultless fulfillment. Net retailers need to already prepare for follow-up
email campaigns in January, offering value-added customer service and
relevant offers such as insurance to leisure trip buyers and the latest DVD
releases to the purchasers of new players," Favier added. "With such
well-targeted campaigns they will top the average email conversion rate of
15% and maintain high turnover till next Christmas."