News and Press Releases:

On-line Interactive Recommendation Engine Receives $2.5 Million First Round
Venture Strategy leads Series A Financing

CHICAGO, IL / SAN FRANCISCO, CA January 24, 2000 - Recommender, Inc., a business to business to consumer (B2B2C) company that creates natural language based interactive recommendation systems for on-line Web-sites, closed on a $2.5 Million first round of financing.

Venture Strategy, a prominent early stage Silicon Valley venture capital fund, led the round of financing. Venture Strategy's investment represents the first investment out of it's second fund, VS-2, targeted to be a $100+ million fund. WR Hambrecht + Co. and Arch Development Corporation, the technology transfer arm of the University of Chicago, also participated in the round. Anthony Conrad, a partner at Venture Strategy and WR Hambrecht + Co's Bob Hambrecht will serve on Recommender, Inc.'s Board of Directors. Jeffrey Barth, CEO and President Recommender, will also serve on the Board of Directors.

Recommender, Inc.'s technology creates natural language based interactive recommendation systems that enable consumer companies to maximize Website customer acquisition and retention through an interactive on-line virtual salesperson. The core technology, called Find-Me Systems, was developed in the artificial intelligence and computer science labs of the University of Chicago and Northwestern University.

"We view B2B2C as a segment offering tremendous near term value. Similar to companies such as opt-in permission marketing (Post Communications) and collaborative filtering engines (Net Perceptions), Recommender, Inc. combines a strong base technology with marketing intelligence to drive business to consumer customer acquisition and retention efficiencies," said Anthony Conrad, Partner of Venture Strategy.

Venture Strategy foresees the business-to-business (B2B) and B2B2C business models as playing an integral role in the Internet marketplace. Venture Strategy plans on investing VS-2 in B2B and B2B2C companies that aim to help business to consumer (B2C) companies improve marketing efficiency, like Recommender, Inc.

Venture Strategy's VS-2 fund is geared towards developing long-term capital appreciation through equity investments in emerging companies that are at the nexus of technology and brand. Venture Strategy's first fund, VS-1 portfolio includes investments in companies such as Flooz.com, Post Communications, ShoppingList, UAccess and Chipshot.com. Venture Strategy has co-invested with leading venture capital funds such as Benchmark, Brentwood, Mohr Davidow and Sequoia.

About Venture Strategy
Founded in 1996, Venture Strategy is a San Francisco-based venture firm that accelerates the growth of emerging business at the nexus of technology and brand. Venture Strategy backs leading brands across a variety of technology industry sectors in the business-to-business, business-to-business-to-consumer and business-to-consumer marketplace. Venture Strategy defines "brand" as a business system that permeates an entire organization, including its employees, customers and shareholders. Venture Strategy believes that a well-defined brand is essential to an emerging company's success. The opportunity to invest in technology-focused companies that recognize the strategic importance of brand requires a different skill set than the traditional fund can deliver. The Venture Strategy team provides the value-added expertise to build hallmark technology brands.

Visit us on the Web at http://www.vspartners.com. For more information about Venture Strategy, you may also contact Anthony Conrad at conrad@venturestrategy.com. Venture Strategy is located at 655 Third Street, San Francisco, California 94107.