May 31, 2001, 12:00 AM

BMG Direct Names iXL Strategic Online Partner

Kurt Peters

Senior Executive Editor

ATLANTA, May 31 -- BMG Direct, one of the world`s leading media companies, has selected global consulting firm iXL (Nasdaq: IIXL) to optimize the company`s existing direct mail-driven business model for the Internet and redesign and implement its core Web site, www.bmgmusicservice.com . BMG Direct, the North American music membership service, is an operating unit of BeMusic, the direct-to-consumer marketing division of Bertelsmann AG. BMG Direct operates music clubs for general audiences, Classical, Christian, Jazz, and Latin music buyers. The combined clubs have over 10 million members in the U.S.

This strategic initiative will include an extensive user needs analysis, competitive landscape assessment, online branding and positioning, and consumer behavior research. The work will culminate in a complete user interface redesign of the current www.bmgmusicservice.com site.

"BMG Direct intends to reinvent and revitalize the user experience via a comprehensive Web site re-launch. Reconstructing our site will ensure a unique online experience for each of our members, enabling them to take full advantage of the club`s many offers," said George McMillan, CEO of BeMusic. According to Gary Schmidt, IT Director, "BMG chose iXL to create this experience based on their retail industry expertise and their previous work on other BMG initiatives."

"Our goal is to create a solution that will provide a rewarding, user- friendly online experience for BMG members and prospects. To achieve this, iXL will enable BMG to capture broader and deeper customer information using a more nimble sales and fulfillment channel," said David Friedman, global managing partner for iXL`s Retail and Consumer Goods group. "By delivering such a solution, we anticipate a better experience for customers and greater success for BMG. Each step of the process will include significant customer feedback to ensure that the business will attain its goals."

Re-launch of the site is scheduled for Fall 2001.

About iXL

iXL is an industry-focused global consulting and services company. iXL solves fundamental business issues by digitizing and integrating our clients` sales, customer service, training, production and distribution processes to facilitate interactions with all customers, employees and suppliers across all channels. iXL has done this successfully for some of the world`s leading companies, including AIG, BellSouth, British Airways, Budget Rent a Car, Chase, Citicorp, The Coca-Cola Company, Delta Air Lines, DuPont, Eastman Chemical FedEx, First Union, Fleet, GE and LloydsTSB via its Enterprise, Travel/Transportation, Financial Services, Retail/Consumer Packaged Goods and Manufacturing groups. For more information, visit www.ixl.com .

Forward Looking Statements

This release contains certain forward-looking statements regarding iXL, including statements about its operations, prospects and expectations about future financial results. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially. These risks and uncertainties include the ability to complete the anticipated transactions on acceptable terms, the ability to implement the strategies outlined above, the demand for iXL`s services, iXL`s ability to obtain additional projects with existing or new clients, iXL`s ability to provide services to existing and new clients, the sufficiency of iXL`s sales and marketing teams, future growth, absence of long-term contracts with clients, key management and employee retention, competition, technological advances, and other factors identified in iXL`s filings with the Securities and Exchange Commission, including but not limited to the 10-K and subsequent 10-Qs. Copies of those filings are available from the Company and the SEC.

CONTACT:
Shannon K. Whalen
404-279-3944
swhalen@ixl.com

or

Betsy Valentine
703-639-1496
bvalentine@ixl.com

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