Press Release: February 10, 2000

WR Hambrecht + Co Initiates Coverage of Alloy Online (ALOY) with Market Outperform and Target of $30

Online and offline distribution platform poised to benefit from "Gen Y" migration to web

San Francisco, CA, February 10, 2000—

WR Hambrecht + Co, the online investment bank, today initiated research coverage on Alloy Online (ALOY) with a Market Outperform rating and 12-month price target of $30. In his report, WR Hambrecht + Co’s eMarkets and Portals analyst Derek Brown cited Alloy’s unique convergence media model and modest enterprise value as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

Alloy Online, Inc. is a leading merchant, direct marketer, and online destination focused exclusively on "Generation Y"

to provide manufacturers, marketers, and resellers with a powerful and highly effective distribution platform for their goods and services.

"Alloy Online should be an important beneficiary of the expected growth and migration online of ‘Gen Y,’" Brown said. In addition, he stated, "Alloy’s unique and highly effective convergence media model, which blends retail catalog sales, with eCommerce, advertising/sponsorship opportunities, and community-building functionality, is ideally suited to capitalizing on the market opportunity."

Brown projects Alloy’s total revenues will reach $64.4 million in F2000 (Jan.) and $116.5 million in F2001, up from 1999 earnings of $26.7 million. He expects the Company’s first quarterly profit to be achieved in FQ4:00.