January 16, 2003



Annual Revenues Double, Driving GAAP Profitability in 2nd Half

New York, NY - DealTime Ltd., the leading shopping search engine, today reported record revenues for the fourth quarter and calendar year. Revenues for the record-breaking holiday shopping season were more than $11 million and annual revenues were $29 million, exceeding previously announced estimates and doubling for the third consecutive year. DealTime also announced that it was profitable in accordance with generally accepted accounting principles (GAAP) for the second half of the year.

DealTime ranked as the third most popular online shopping site throughout December 2002 according to comScore Media Metrix . Visits to DealTime.com® more than doubled in 2002, and the site ranked as a top 10 Internet shopping destination throughout the year according to Nielsen//NetRatings, attracting more than 10.5 million US unique visitors in December alone.2

"2002 was a break-through year for DealTime," said Dan Ciporin, DealTime's Chairman and CEO. "Visits, customer conversion rates and revenue-per-referral grew dramatically throughout the year, culminating in a tremendous gift-buying season. We were very pleased to be able to provide consumers with the best online shopping experience and our merchants with so great a return on their investment."

Key Milestones Met
During 2002, DealTime achieved the following milestones:

· Doubled user visits, shopping searches and referrals to merchants
· Tripled its merchant base to more than 1,500 online stores, including most online brand leaders.
· Delivered more revenue-per-referral than the largest portal shopping channel and the leading paid search provider, according to comScore Networks3
· Delivered more serious shoppers, person-for-person, than the largest search engines and portal-affiliated shopping channels, according to Nielsen//NetRatings4
· Delivered an extraordinary 13.3 percent conversion rate to sale to merchants on DealTime referrals, according to independent research reported in the Journal at MarketingExperiments.com5
· Released version 3.0 of its proprietary search technology, making it virtually effortless to compare products and merchants online.
· Improved the site user experience by eliminating pop-up and pop-under advertisements

The company expects further growth and profitability in 2003, driven by increasing consumer adoption of online shopping search engines and by DealTime's continued leadership of the category.

"We will realize increasing revenue by continuing to provide consumers with the best possible online shopping experience," continued Mr. Ciporin. "And we will gain market share by continuing to providing merchants with the most targeted and cost-effective means of reaching qualified buyers on the Web."

About DealTime®
DealTime is the world's leading online shopping search engine, reaching millions of shoppers worldwide every month. Through its Web sites, dealtime.com®, dealtime.co.uk and other network sites (including AltaVista, Lycos and Excite Network), shoppers compare products, prices and stores across the Web. For merchants and manufacturers, DealTime delivers qualified, in-market buyers and lower customer-acquisition costs. For traffic aggregators, portals and other partner sites, DealTime provides a powerful search engine and superior shopping tools that enable them to more easily monetize their traffic. For consumers, DealTime supplies product information and an easy way to find the right product at the best price. DealTime Ltd. is a multi-national private company, venture-backed by key strategic and financial partners including Bertelsmann, AOL TimeWarner, Bank of America, Bain Capital, Singapore Telecom and others.
DealTime, DealTime.com and the DealTime logo are registered trademarks of DealTime Ltd.

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Media Contact: Company Contact:
Krista Thomas David Epstein
The Blueshirt Group, for DealTime SVP, Corporate Development
415/217-4964 212/905-8070
krista@blueshirtgroup.com dave@dealtime.com

1 comScore Media Metrix: netScore database December 2002
2 Nielsen/NetRatings shopping destinations report
3 comScore Networks, August 2002
4 Custom research by Nielsen/NetRatings during the quarter ending November 30, 2002
5 Third-party case study conducted by Marketing Experiments Journal during November 2002. See http://www.marketingexperiements.com/archives/dealtime.cfm