COOLSAVINGS REPORTS SECOND QUARTER AND SIX MONTH FINANCIAL RESULTS

Contact:
Melissa Rabin
CoolSavings, Inc.
(312) 224-5153
melissa@coolsavings.com

Company Narrows Loss Applicable to Common Stockholders for Second Quarter by 31% and EBITDA Loss by 80%

CHICAGO – July 30, 2002 – CoolSavings, Inc. (OTC:BB CSAV), an online direct marketing and media company that provides smarter solutions to connect marketers to their target consumers, today reported results for the second quarter and six month period ended June 30, 2002.

In the first half of 2002, CoolSavings introduced several new products that leverage the strength of its core online direct marketing and media business. In the second quarter, 1.4 million new consumers registered with CoolSavings, bringing the service’s total membership to nearly 20 million registered U.S. households, each having detailed profiles made up of more than 250 data points of self-reported, behavioral and transactional information.

Direct Mail Business – Postal List Rental & Cooperative Direct Mail

Among CoolSavings recent product introductions is an offline direct mail program that allows advertisers for the first time to access CoolSavings’ online consumer base through offline postal communications while leveraging the online property for enhanced data collection and e-mail programs that boost postal campaign performance. To date, more than 35 leading advertisers have taken advantage of the wide variety of data that CoolSavings collects to reach their target audience through the program. Additionally, the company is set to launch a Co-Op Direct Mail program through which advertisers will reach highly active CoolSavings shoppers by purchasing inserts in a CoolSavings-branded envelope.

CoolSavings Coupon Technology – ASP Technology License

The second quarter also saw significant growth of the CoolSavings Coupon Technology Solution, another of the company’s recently developed offerings. Through the service, companies are able to take advantage of an ASP product called CoolSavings Coupon Technology to deliver printable incentives to consumers from their own Web site, e-mail and banner advertisements. A number of key accounts have been added to the growing list of advertisers utilizing the service, including GlaxoSmithKline, Kal Kan Foods, Inc. and Hollywood Video.

Select Response - Enhanced Data Collection

Another CoolSavings initiative that has experienced strong advertiser adoption and which reinforces the Company’s leadership position in online direct marketing is a recently launched product, Select Response. Select Response is a cost-efficient consumer survey tool that asks consumers specific questions and then micro-targets customized e-mail and postal offers based on each consumer’s answers. Advertisers learn a host of invaluable information, such as consumer purchase intent, category consumption and brand loyalty. Select Response questions can be asked during the CoolSavings registration process, on the site, in targeted e-mail or category newsletters and can increase consumer response and conversion by as much as 50%.

“The growth of our services, both in- and outside of the CoolSavings online media property and e-mail programs, stems from the need to provide a complete solution to our advertisers,” commented Matthew Moog, president and chief executive officer of CoolSavings. “Today’s consumers have more choices than ever, and we want to enable our advertisers to reach their target audience at the right time and place, with the right incentives.”

Added Moog, “By leveraging our proprietary technology and expertise in the collection and use of consumer data to develop new services, we have created important new revenue opportunities that complement our core business.”

CoolSavings’ Second Quarter and Six Month Results:

Net revenues in the second quarter were $5.1 million compared to $5.3 million in the same period of 2001. Gross profit in the second quarter was $4.2 million, or 82% of net revenues, compared to $3.7 million, or 71% of net revenues in the second quarter of 2001. EBITDA for the second quarter was a loss of $0.2 million compared to an EBITDA loss of $8.7 million in the second quarter of 2001. Total operating expenses in the quarter were $5.6 million compared to $13.6 million reported in the same period of 2001, a decrease of 59% over last year. For the second quarter the loss applicable to common shareholders was $1.9 million, or a loss of $0.05 per share, compared to the loss of $10.2 million, or $0.26 per share, reported in the same period of 2001.

Net revenues in the six month period were $10.9 million compared to $11.6 million in the same period of 2001. Gross profit in the first half of 2002 was $9.0 million, or 83% of net revenues, compared to $8.1 million, or 70% of net revenues in the first half of 2001. EBITDA for the six month period was a loss of $1.3 million compared to an EBITDA loss of $15.9 million in the comparable period of 2001. Total operating expenses in the six month period were $12.7 million compared to $26.5 million reported in the same period of 2001, a decrease of 52% over last year. For the six month period the loss applicable to common shareholders was $4.7 million, or a loss of $0.12 per share, compared to the loss of $18.6 million, or $0.48 per share, reported in the same period of 2001.

At June 30, 2002, CoolSavings had cash and cash equivalents of $2.2 million and total assets of $12.7 million. Accounts receivable, net of allowances, at the end of the second quarter were $3.1 million. Current liabilities totaled $19.6 million and total liabilities were $20.0 million. Stockholders’ deficit at June 30, 2002 was $19.7 million.

Business Outlook

The following statements are based on current expectations, are forward-looking and actual results may differ materially. Although accurate forecasting of quarterly results is especially difficult in the current period, where visibility is low; the company expects third quarter and year-end improvements in revenue and net income over the same periods in 2001.

About CoolSavings