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London, 25 November 2002 - BTLookSmart today announced that it has signed a string of lucrative online advertising deals with leading High Street brands and online etailers in the run up to Christmas. Argos, M&S, HMV and Dixons head up the high street signings, while the likes of online gift site Buyagift and lingerie site Figleaves take centre stage for online companies using BTLookSmart to drive traffic to their site this Christmas. BTLookSmart is the international joint venture between LookSmart (NASDAQ: LOOK; ASX: LOK), a leader in Search Targeted Marketing, and British Telecommunications (NYSE: BTY).

High street giant Argos has signed an advertising and partnership deal that sees the company appearing in a series of graphical adverts, with Performance and Featured Listings linking Argos.co.uk to the BTLookSmart network of search directories.

Electrical retailer Dixons, who are also advertising on BTLookSmart said, “We wanted to drive sales on the Dixons site and chose BTLookSmart’s Performance Listings service to link Internet users directly from search engine to sales pages. We have already seen the campaign to be a great success and hope to increase sales further on the run up to Christmas.”

Kevin Kerrigan, COO of BTLookSmart commented, “IMRG, the industry body for global e-retailing, estimates that £2billion will be spent online by ten million Internet shoppers in the November and December run-up to Christmas. This is a huge market and etailers are looking for the best methods of driving online shoppers to their sites. BTLookSmart’s search marketing solutions provide etailers with a great way of attracting targeted traffic to their site.”

Other leading High Street brands with etail websites such as Tesco Electricals, O2, and MFI have also signed up to BTLookSmart's Performance Listings service to attract people searching for Christmas gifts online. The Performance Listings service operates on a pay for performance basis, so the advertiser only pays when a user clicks on their listing.

Lingerie etailer, Figleaves, has signed a five figure advertising deal that will see them running adverts across the BTLookSmart network. The campaign will run for three months using a combination of Performance Listings and BidSmart featured listings. French etailer La Redoute is also using Performance Listings to attract customers to its site in November and December.

Online etailer Buyagift has also signed an advertising deal with BTLookSmart to drive more Internet users to its website and boost sales in the run up to Christmas. The BTLookSmart network of search partners in the UK includes MSN, UK Plus, BTopenworld, Tiscali, ntl:home and AltaVista, and reaches 64 per cent of Internet users in the UK (source: Media Metrix, January 2002).

Nearly all of the etailers who have signed up to advertise across the BTLookSmart network of search directories for the festive period have used the Performance Listings service. Performance Listings allow advertisers to link specific pages within their web sites to keyword searches on search directories. If someone typed the search term “Hairdryer” into a search directory, a search listing can be brought up in the results that links straight to the relevant page within a web site selling hairdryers, rather than the general home page of the site.

About BTLookSmart

BTLookSmart is the international joint venture between LookSmart (NASDAQ: LOOK; ASX: LOK), a global leader in search targeted marketing, and British Telecommunications (NYSE: BTY). It provides directory and search solutions in multiple languages through many of the leading ISPs and portals in Europe and Asia including MSN, Tiscali, ntl:home, BTopenworld, AltaVista, UK Plus, DDi corporation and Japan Telecom. The BTLookSmart network in the UK enables advertisers to reach 63.5% of all active Internet users (source: Jupiter Media Metrix, January 2002). BTLookSmart is deploying LookSmart's Web, WAP, mobile Internet and broadband search and directory solutions for ISPs, portals and mobile Internet businesses in countries across Europe and Asia-Pacific. The company operates two regional headquarters in Tokyo, Japan and London, UK, serving the Asia Pacific and European markets respectively. For further information please visit http://www.btlooksmart.com

For more information please contact:

Tim Hadley / James Cook / Mark Casey

Prodigy Communications

Tel: +44 (0) 20 7580 1366

Fax: +44 (0) 20 7580 1367

Email: tim@prodigypr.com / james@prodigypr.com / mark@prodigypr.com


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