CoolSavings Launches FreeStyle Rewards(sm) Company Extends Its Online Expertise to Marketers with New Loyalty Program; Provides Consumers More Than Twice the Value of Other Leading Rewards Programs CHICAGO, March 21 /PRNewswire-FirstCall/ -- Leading interactive marketing services provider CoolSavings, Inc. (OTC:CSAV) (BULLETIN BOARD: CSAV) today announced the launch of FreeStyle Rewards(sm), ( http://www.freestylerewards.com/ ) a new consumer rewards program that marks the company's first major initiative in a long-term commitment to providing loyalty marketing solutions for its advertisers. Loyalty and continuity programs comprise a $1.8 billion industry in the United States(1) with more than 75 percent of consumers participating in a points-based loyalty program(2). (Logo: http://www.newscom.com/cgi-bin/prnh/20050203/CGTH021LOGO ) "In adding FreeStyle Rewards to our best-in-class lead generation, coupon and e-mail services, CoolSavings brings seven years of expertise in online marketing to the loyalty and continuity market," said Matthew Moog, president and CEO of CoolSavings. "In this time, we've helped thousands of advertisers engage millions of consumers to achieve their strategic marketing objectives. FreeStyle Rewards provides an opportunity to expand our service to a new and growing group of merchants and shoppers." FreeStyle Rewards offers a unique value proposition to consumers compared to other points-based loyalty programs. The program awards users up to 20 points for every dollar spent at more than 175 participating merchant Web sites. This represents one of the highest average points-to-dollar ratios in the industry. In fact, in a head-to-head comparison with MyPoints, a points-based, online rewards provider, a consumer spending $1,000 at the same 10 randomly chosen online merchants earned more than double the points by using http://www.freestylerewards.com/ compared with the other provider. The dollar value reward for those points was $54.60 with FreeStyle compared with $23.33 with the other provider(3). Additionally, each new FreeStyle Rewards member will receive an introductory bonus of 100 points upon his or her first qualifying purchase of $25.00 or more through June 2005. As another point of differentiation, the FreeStyle Rewards Gift Card is a Debit MasterCard that can be spent like cash at millions of locations across the country and online, giving consumers expansive choice for how they reward themselves. With many other programs, consumers are required to choose a specific merchant's gift card when redeeming their points, limiting choice and flexibility. "With one of the industry's best 'points to dollar' ratios, higher value purchasing power for redemption, and the flexibility to spend rewards at millions of locations, FreeStyle Rewards presents a clear, exciting choice for consumers," added Moog. Consumer demand for cash rewards -- and flexibility in redeeming them -- were the two driving forces in the design of FreeStyle Rewards. In a study of more than 21,000 consumers, CoolSavings found that consumers overwhelmingly prefer to receive cash over merchandise points, and prefer to receive that cash in the form of a debit card, rather than a gift certificate. For participating merchants, FreeStyle Rewards provides a consistent source of motivated, active online shoppers to drive incremental traffic and sales at their retail Web sites. The program will be promoted to millions of active CoolSavings members, as well as through numerous other marketing channels across the Internet. In addition, taking part in the program is easy. Merchants simply join through their affiliate network providers with no technology requirements involved. FreeStyle Rewards is the first new consumer brand from CoolSavings, Inc. since the Company launched the #1 Coupon Site on the Internet(4), coolsavings.com, in 1997. Participating FreeStyle Rewards merchants include Target, Sears, Kohl's, Office Depot, Avon, Lillian Vernon, Cabela's, Wilsons Leather, Lenox, Eddie Bauer and CompUSA. Its Web site address is http://www.freestylerewards.com/ . 1) Colloquy, "Loyalty Trends for the 21st Century", April 2004 2) Gartner, Inc, as reported in E-Commerce Times, February 28, 2004 3) Details of the shopping sample and results comparing FreeStyle Rewards and MyPoints are available on request. 4) comScore Media Metrix, Jan.2000-Feb.2005 About CoolSavings CoolSavings, Inc. is a leading interactive marketing services company that provides best-in-class lead generation, e-mail, coupon and loyalty programs for advertisers, their agencies and publishers. Our unique targeting, optimization and predictive modeling capabilities help to power an extensive marketing network that reaches more than 35 million consumers. In 2005, CoolSavings will serve more than 1 billion offer impressions across our distribution network, generating more than 100 million responses for our advertisers, which include leaders in the consumer packaged goods, retail and direct marketing industries. CoolSavings is a registered trademark and FreeStyle Rewards is a service mark of CoolSavings, Inc. Other product and company names herein may be trademarks of their respective owners. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements under the caption "Business Outlook" and other statements regarding the Company's expectations, beliefs, hopes, intentions, or strategies. Where possible, these forward-looking statements have been identified by use of words such as "project," "forecast," "anticipate," "believe," "will," "expect," and similar expressions. Known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in this press release, may cause our actual results and performance to differ materially from the future results and performance expressed in, or implied by, such forward-looking statements. These risks, uncertainties, and other factors include, without limitation, our ability to secure financing to meet our long-term capital needs, our ability to secure long-term contracts with existing advertisers and attract new advertisers, our ability to add new members, our successful introduction of new services and features, our ability to compete successfully against current and future competitors, our ability to protect our patents, trademarks and proprietary rights, our ability to continue to attract, assimilate and retain highly skilled personnel, our ability to successfully integrate TMS with our existing business, general industry, economic and market conditions and growth rates, the potential for higher actual media costs, and other costs and expenses when compared to our estimated costs and projections. For a discussion of these and other risks, uncertainties and factors which could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements, see "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2003, and our Quarterly Report on Form 10Q for the quarter ended September 30, 2004, both as filed with the SEC. http://www.newscom.com/cgi-bin/prnh/20050203/CGTH021LOGO http://photoarchive.ap.org/ DATASOURCE: CoolSavings, Inc. CONTACT: Melissa Lederer of CoolSavings, Inc., +1-312-224-5153, , or Mary Sawyer of Kupper Parker Communications, +1-314-290-2047, Web site: http://www.coolsavings.com/ http://www.freestylerewards.com/

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