January 18, 2006

BuzzMetrics today announces an agreement in principle under which it will acquire Intelliseek.

Both BuzzMetrics and Intelliseek are the recognized leaders in helping Fortune 1,000 companies listen to, measure and act upon the consumer dialogue affecting their markets.

The firms' powerful technologies mine publicly archived online sources including blogs and discussion forums to collect and transform large volumes of unaided conversations into actionable consumer insights.

Upon closing of the acquisition, the combined company, BuzzMetrics, Inc., will operate under the "Nielsen BuzzMetrics" brand and be headquartered in New York.

Backed by VNU, the Nielsen BuzzMetrics service will bring together the advanced technologies and client relationships of Intelliseek, developed over the past nine years, with the linguistic technologies and client-service expertise of BuzzMetrics.

The Nielsen BuzzMetrics service will fully leverage the strategic and financial backing of VNU, parent to such renowned research names as ACNielsen and Nielsen Media Research. VNU will become a majority shareholder in the new BuzzMetrics with 50.1 percent ownership.

The deal marks the third in a series of word-of-mouth research investments supported by VNU. In February 2005, VNU acquired an equity interest in Israeli-based Trendum, a leader in media and linguistic analysis technologies. In September 2005, Trendum acquired BuzzMetrics, and the new company adopted the BuzzMetrics name.

Consumer-generated media (CGM) - a term created by Intelliseek - describes a variety of new influential sources of online content, including blogs, public message boards, product feedback sites and direct company feedback.

The Pew Internet and American Life Project reports that nearly half of adult Internet users use the Internet to publish their thoughts, respond to others, post pictures, share files and otherwise contribute to the explosion of content available online.

"The combination of these companies will result in a world-class organization with well over 100 Fortune 1000 clients, more than 100 employees and offices in New York, Cincinnati, Pittsburgh and Israel," said Itzhak Fisher, chairman of BuzzMetrics, who will remain chairman with the new company.

"The Nielsen BuzzMetrics service will set a new standard in helping executives strategically leverage the buzz surrounding their brands and compete more effectively in today's rapidly changing world of consumer marketing."

"The expansion of our measurement experience and leadership into consumer- generated media is an important evolution for VNU at a time when marketers are struggling to fully understand the consequences of consumer control," said Susan Whiting, president and CEO, Nielsen Media Research, and executive vice president, VNU Media Measurement & Information group.

"With the emergence of these new consumer-generated media, the addition of the Nielsen BuzzMetrics service to our market-leading audience measurement services will enable us to better understand what consumers say, spread and share, in addition to what they watch, listen to and read."

"In a highly complex, fast-changing marketplace, consumer packaged goods manufacturers and retailers are focused more intently than ever on creating marketing programs that deliver a real return on investment," said Steven M. Schmidt, president and CEO, VNU Marketing Information group and ACNielsen.

"The key is understanding all of the factors that influence consumer purchasing, including word-of-mouth dialogue among consumers.

Nielsen BuzzMetrics will give VNU a new way to measure and analyze this increasingly powerful force in consumer decision-making."

Source: BuzzMetrics Inc.

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