RocketCash In NetZero's Orbit

NetZero Inc., a provider of targeted advertising and commerce-supported free Internet access, has signed an agreement to acquire privately held RocketCash Corp., an online gateway that enables consumers, particularly in the teen market, to shop and buy securely on the Internet without a credit card. Under the terms of the agreement, NetZero will issue about 5.6 million shares of its common stock. Subject to various closing conditions, the transaction is expected to be completed in third-quarter 2000. RocketCash users can fund an account with a check, money order, gift certificate or credit card for a fixed balance to shop online.

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     Westlake Village, Calif.-based NetZero says that it intends to use RocketCash's proprietary and patent-pending currency exchange and payment processing technology to create a merchant network for NetZero's more than 4 million registered users. The RocketCash technology enables consumers to aggregate various forms of currencies, including online incentive dollars, offline promotional points, gift certificates, money orders, personal checks and U.S. dollars into one spending account.

     The technology acts as an intermediary between online shoppers and merchants, says Mountain View, Calif.-based RocketCash, tracking and manipulating pages to deliver content insertion and modification, collecting valuable browsing and purchasing data and delivering third-party payment processing. RocketCash's data capabilities combined with NetZero's proprietary zCast technology will enable NetZero to provide its users who register for the service with targeted online redemption coupons and advertisements, it says. RocketCash has agreements with more than 110 e-tailers that are part of the RocketCash Merchant Network, which does not require any modifications to merchant Web sites or software downloads, it says.

     NetZero will make the technology available directly to consumers under the RocketCash brand and will offer its technology to portals, consumer packaged goods firms and incentive sites on a private-label or RocketCash-branded basis.

     Merchants in the RocketCash Merchant Network include Amazon.com, Alloy, ARTISTdirect, Barnesandnoble.com, CDNOW, Delia's, Fogdog Sports, JCrew, MXGonline, Pacific Sunwear and Staples.