NPD AND MEDIA METRIX E-VISORY REPORT SHOWS THREE OUT OF FOUR PET OWNERS AWARE OF ONLINE PET STORES

Now Marketers Face Challenge of Moving Consumers from Awareness to Shopping and Buying

PORT WASHINGTON, NEW YORK, June 19, 2000 - According to a new e-Visory Report released by leading marketing information provider The NPD Group, Inc. and Media Metrix (NASDAQ: MMXI), 75% of pet owners who access the Internet are aware of online pet stores, up from 55% in September 1999. Twenty-seven percent have shopped at an online pet store, while 14% made an actual purchase at an online pet store.

The study confirms that almost three times as many pet owners become aware of online pet stores from television advertising compared to last year, while fewer are learning about sites from surfing the Web. Though television advertising in the category is growing, consumers are still more likely to find out about pet e-tailers from some online source, such as clicking on a banner ad or direct link from another site.

"Our study confirms that big advertising budgets, such as the one featuring the Pets.com 'Sock Puppet,' have had an impact on the industry. Now that consumers are aware of their sites, marketers' next big challenge will be to draw them in to shop, convert them into buyers, and make it a profitable transaction," commented NPD New Media Vice President Carol Neithercut.

The good news for marketers is that while category penetration is still low, customer satisfaction is high. Among the 14% who have purchased, a whopping 97% of them are satisfied with their buying experience. More than two-thirds reported being very satisfied (68%), up from just over one-half in September of 1999 (53%).

Also boding well for the industry, the majority of consumers who have shopped at pet store sites said they are likely to shop again in the next three months (59%), and half would make a purchase sometime in the future (49%). Not surprisingly, those consumers who are very satisfied with their buying experiences at online pet stores in general are much more likely to make a purchase in the future than those who have not.

Media Metrix reported that Petsmart.com had the highest number of unique visitors among pet store sites* in March of 2000. Petsmart.com is the online extension of the leading offline specialty pet store chain in the nation. Petsmart.com's advantage comes from tapping into the tremendous buying power of its parent company. Like Petsmart.com, other top pet store sites have the support of strong alliances. Petopia.com is backed by the offline retailer Petco, while Pets.com is supported by Internet e-tailing giant, Amazon.com.

For more information or to purchase the e-Visory Report, contact Stacy Miller at (516) 625-2360, or by e-mail at stacy_miller@npd.com.

The NPD data presented in the e-Visory Report were compiled by NPD Online Research from 2,084 surveys completed and submitted in May 2000 by members of NPD's Online Panel, individuals prerecruited to participate in surveys.