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Coupons, Inc. Reports Strong 2007 Growth; Cements Its Leadership Position In The Coupon Market

Coupons, Inc. rounded out a year of firsts and record-setting growth in 2007, including advancements in its software and technology, expanded solutions for printable coupon security, strategic acquisitions and partnerships, and new initiatives to support consumers.

Mountain View, Calif. – February 26, 2008 – Coupons, Inc., the world’s leading provider of printable coupon marketing and technology solutions, saw strong, continual growth in 2007, further cementing its position as the premier platform for interactive coupon promotions. The momentum from 2007 positions Coupons, Inc. to capture significant market share from offline promotions in 2008.

Coupons, Inc. rounded out a year of firsts and record-setting growth in 2007, including advancements in its software and technology, expanded solutions for printable coupon security, strategic acquisitions and partnerships, and new initiatives to support consumers. The company expanded its work with leading CPG and pharmaceutical brands using online promotions to drive measurable in-store sales, and gained new relationships in the retail sector. The company also strengthened its consumer presence by expanding its Digital FSI™ network of over 2,000 websites, led by its own flagship site at Coupons.com, to become the Internet’s leading promotional network.

“With 7 times year over year growth in coupon distribution we’ve exceeded our own expectations. Our goal in 2007 was to make printable coupons a ‘must have’ part of every client’s promotional budget,” said Steven Boal, CEO, Coupons, Inc. “We’re now seeing clients move 10-20% of their promotional spend to this medium, based on proven results. We’re expanding our reach, capacity, and offerings to take the business to the next level in 2008.”

Growth
Coupons, Inc.’s network of consumer websites, including its own Coupons.com, grew coupon print volume more than 700% and increased the number of unique consumers printing coupons each month over 300%. It has become one of the Internet’s most trafficked networks, and leads the consumer savings category. Consumers ended the year printing at a clip of about $200 million in savings per year. The size of the network more than doubled, and now includes hundreds of major newspaper and television websites, major portal, lifestyle, and retailer websites, hundreds of major brand sites, and hundreds of shopping and savings sites.

Internationally, the company saw its fifty-percent stake in Couponstar UK pay dividends, as the market for printable coupons in Europe grew dramatically. The company now runs programs across 9 European countries, and ran four times as many campaigns for brand clients than the year before. Its CouponNET coupon distribution grew over 500% last year and redemption rates rose to 23.5%.

Customer growth
Coupons, Inc. continued to add key accounts to its customer base. In 2007 the company added new major consumer brands such as Kraft, Kellogg’s, H&R Block, Hewlett-Packard, Pepsi, and Unilever to its roster of clients. Among its hundreds of regular clients are over 50 of the world’s largest consumer packaged goods, electronics, pharmaceutical, and entertainment companies, including Clorox, Coca-Cola, ConAgra, Disney, General Mills, Johnson & Johnson, Kimberly-Clark, Masterfoods, and SC Johnson.

Significant partnerships and acquisitions
Coupons, Inc. solidified major partnerships and acquisitions, extending its lead as a full service promotional marketing company. It now provides solutions for manufacturers and retailers, including targeted media, database marketing, family code management, and coupon clearing solutions.

In one key deal last year, Coupons, Inc. partnered with one of the largest grocery retailers in the U.S. to power the printable coupons across all of its store banner websites, allowing shoppers to click and print hundreds of coupons directly from a dedicated coupon section of the website and redeem them at all of the company’s over 2,500 store locations.

Coupons, Inc. also extended its longtime relationship with Valassis to provide the technology behind the printable coupons on the company’s online savings portal. Valassis joined a long list of partners using Coupons, Inc.’s CLIP™ technology, including Yahoo, Grocery Shopping Network, Couponstar UK, and others.

The company also completed several acquisitions to extend its technology and depth of coupon offerings:

• Consumer Networks LLC, / Boodle acquisition – In May 2007, Coupons, Inc. acquired the assets of Consumer Networks LLC, a privately owned venture of Gannett Co. Inc., Tribune Company, and the Copley Press. Through the deal, Coupons, Inc. distributes printable coupons from major consumer brands to over 550 newspaper websites.

• J Michels Consulting acquisition – In January 2007 Coupons, Inc. purchased J Michels Consulting, a firm known industry-wide for its family code and UPC management services, expanding the company’s promotional services and family code expertise.

Coupon leadership

As a leader in the market, Coupons, Inc. is at the forefront of coupon technology and services, both online and offline. In 2007, the company introduced innovative new technology to push the industry forward, and was one of the first to support the newest technology in coupon barcodes:

• CLIP Web Services API – Coupons, Inc. expanded its online promotional technologies by launching CLIP™, a rich suite of web services that enable destination websites to seamlessly integrate coupon and related promotional content into their sites.

• Enhanced security – a significant upgrade to the company’s coupon printing software improved the technology, security, and visual format of printable coupons. The new coupons have improvements designed to make them even easier for retailers and clearinghouses to accept and process. The new security features draw on techniques used in the world’s most secure documents such as currency.

• New barcode support – Coupons, Inc. was also the first company to fully support and launch printable coupons with dynamically-generated, serialized GS1 DataBar barcodes. The GS1 DataBars will replace UPC/EAN barcodes and become the industry standard on all manufacturer’s coupons over the next two years.

• Prescription pharmaceutical coupons – Coupons, Inc. pioneered the use of money-off coupons for prescription pharmaceuticals, providing coupon creation, distribution, campaign management, and clearing services for these innovative, measurable promotions. In 2007, it reached a significant milestone, having processed coupons for as much as $1.2 billion in prescription drug purchases.

Looking Ahead As exciting as 2007 was, the company is looking forward to even faster growth in 2008. It continues to increase coupon distribution volume, with another record-setting month in January. Upcoming developments in network expansion, mobile promotions, retail-specific marketing solutions, local advertising, and all-electronic coupons will make for another landmark year.