United Online Signs Multi-Year Distribution Agreement with Musicland

NetZero to be Exclusive Internet Service Offered in Musicland's Sam Goody, Suncoast and Media Play Stores


WOODLAND HILLS, Calif., Oct. 7, 2004 (PRIMEZONE) -- United Online, Inc. (Nasdaq:UNTD), a leading provider of consumer Internet subscription services, today announced it has entered into a multi-year distribution agreement with Musicland Group Inc., one of the nation's leading specialty retailers of music, movies and entertainment-related products. Under the agreement, United Online will offer its value-priced NetZero Platinum and NetZero HiSpeed Internet services in the more than 900 Sam Goody, Suncoast and Media Play stores in the continental United States.

"Forging a partnership with Musicland continues to extend NetZero's footprint within the consumer retail channel," said Brian Woods, executive vice president and chief marketing officer of United Online, Inc. "Musicland's store brands are well-known to consumers who seek the latest in music, movies and entertainment, and present a new and unique group of receptive consumers to reach with our value-priced message."

As the exclusive Internet service, NetZero will be prominently featured and actively marketed in each location through display units, CD stands and signage. In addition, NetZero advertising will be shown on the stores' in-store television network.

"Offering NetZero's Internet services at our stores is part of our continuing strategy to expand our product mix and provide added value to our customers," said Brian Miller, vice president of Marketing for Musicland. "From online gaming to purchasing products, the Internet has become a main source of entertainment, making it a natural extension of our stores' product offerings."

The value-priced NetZero Platinum Internet access service offers unlimited Internet access for only $9.95 per month -- less than half the price of premium-priced standard Internet access services(1). This easy-to-use service also includes Web-based email with 10 MB of email storage, powerful spam and anti-virus protection, reliable connections, compatibility with popular instant messaging programs, and features such as easy access to search engines, news and sports headlines, shopping and financial services.

NetZero HiSpeed offers all the features of the Platinum service along with Web surfing at up to five times the speed of standard dial-up(2). Using next generation technology, NetZero HiSpeed works from any standard phone jack and does not require any new hardware to provide an accelerated dial-up Internet surfing experience. This service, offered at $14.95(1) per month, also includes a pop-up blocker and 25 MB of email storage.

(1) Additional phone and live tech support charges and usage restrictions may apply. References to competitors' pricing and savings amounts based on standard monthly rates for non-accelerated versions of service as of 09/01/04.

(2) NetZero HiSpeed does not increase the transmission speed of files or attachments, including music or video.

About Musicland

Musicland Group Inc. is a leading national specialty retailer of music, movies and games that appeal to trend-conscious, entertainment-focused consumers. The company is expanding and diversifying its key entertainment offerings to satisfy the changing needs of its consumers. Musicland operates more than 900 retail stores and online under the names Sam Goody (samgoody.com), Media Play (mediaplay.com) and Suncoast Motion Picture Company (suncoast.com) in 48 states, Puerto Rico and the Virgin Islands.

About United Online

United Online, Inc. (Nasdaq: UNTD) is a leading provider of Internet subscription services through a number of consumer brands, including NetZero and Juno. The company's standard Internet access services are offered at less than half the standard premium prices of its major competitors and are available in more than 8,000 cities across the United States and in Canada. United Online is headquartered in Woodland Hills, CA, with offices in New York City, San Francisco and Hyderabad, India. For more information about United Online and its Internet access services, please visit www.untd.com.



            

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