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iVillage Reports Third Quarter 2002 Financial Results.

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Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 13, 2002

iVillage Inc. (Nasdaq: IVIL)

- Adds Over 40 New National Advertisers & Brands -

- Launches New Non-Advertising-Based Revenue Initiatives -

- Cuts $6 Million in Ongoing Annual Expenses -

iVillage Inc. (Nasdaq: IVIL), a leading women's media company and the number one source for women's information online, today announced financial results for the third quarter ended September 30, 2002.

Third quarter 2002 revenues were $14.6 million. This compares to revenues of $18.1 million for the third quarter of 2001. iVillage reported a net loss for the third quarter of 2002 of $5.0 million, or ($0.09) per share. This compares to a net loss of $8.0 million, or ($0.15) per share, for the same period a year ago.

iVillage reported an Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) loss of $0.9 million for the third quarter 2002, excluding certain cash and non-cash expenses(1). This compares to EBITDA of $0.4 million, excluding certain cash and non-cash expenses(2), for the same period a year ago.

Douglas W. McCormick, Chairman and Chief Executive Officer, iVillage Inc., commented, "Our core metrics continue to confirm the strength of the iVillage community. Better than one in five women on the Web come to iVillage at least once a month. According to comScore Media Metrix, The iVillage Network is now rated the second largest community site on the World Wide Web and continues to be the number one women's community site."

McCormick continued, "Additionally, our year-to-year revenues were up for the nine-months ended September 30, 2002. While the overall ad market is still under pressure, and Internet advertising more so, we continue to attract new advertisers who see the value of including The iVillage Network, the 13th most visited site on the Internet, in their marketing mix. In the coming quarters we will look to continue growing our advertising base and increasing the level of commitment from our blue-chip advertisers. I am comfortable that our streamlining of operations sets the stage for improved results in 2003."

iVillage also announced several initiatives, including expense reductions, which have taken place during the present quarter and are expected to have a positive effect on future financial results. The cost reductions are estimated to result in a going-forward decrease in expenses by approximately $1.5 million each quarter. iVillage will take a restructuring charge of approximately $0.6 million of which a substantial portion will be taken in the fourth quarter 2002.

As part of the cost containment efforts and to further align operating costs with revenues, the Company will reduce its workforce by approximately 10%, or approximately 30 employees, mostly prior to year-end through a combination of attrition and staff reductions. The positions being eliminated are across the organization. iVillage is also consolidating selected operational functions.

Scott Levine, Chief Financial Officer, iVillage Inc., said, "Like many companies in our sector, we continue to implement organizational changes and make concrete improvements in our cost structure, all...

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