FOR IMMEDIATE RELEASE

iVillage Reports Second Quarter 1999 Financial Results Revenue Increased 207% Over Second Quarter 1998 and 25% Over First Quarter 1999 Membership Grew 33% Over First Quarter 1999 Company Also Announces Strategic Marketing Campaign to Enhance Brand Leadership

New York, NY, August 2, 1999 – iVillage Inc. (Nasdaq: IVIL), the leading online women's network and one of the most demographically targeted communities on the World Wide Web, today announced financial results for the second quarter ended June 30, 1999. iVillage reported $8.1 million in revenue for the second quarter, a 207% increase over revenue of $2.6 million for the comparable year-ago quarter. Second quarter revenue increased approximately 25% over revenue of $6.5 million for the first quarter ended March 31, 1999.

Membership increased to approximately 2.1 million in the second quarter, an increase of 470% over 363,000 for the second quarter 1998 and an increase of 33% over 1.6 million for the first quarter 1999. iVillage.com’s traffic grew 13%, to 102 million average monthly page views during the second quarter of 1999, compared to average monthly page views of about 90 million in the first quarter. Important to revenue growth, second quarter ad views grew 40% over the prior quarter. According to Media Metrix, iVillage.com reported 4.0 million unique visitors in the month of June, reaching 6.4% of combined home and work Internet users. Including AOL visitors, reported in a custom study by Media Metrix, and overseas visitors, iVillage.com unique visitors totaled approximately 6.0 million in the month of June 1999.

“This quarter demonstrates the momentum we are seeing in our business model,” said Candice Carpenter, Chief Executive Officer of iVillage Inc. “Our growth metrics support our concept of community as the optimum way to encircle women in their important life events and then effectively monetize this highly attractive audience. We are accelerating our sponsorships, leveraging our commerce business, putting in place a strong foundation for direct marketing, building consistent community and actively pursuing key broadband initiatives with NBC, as well as internally, to drive our brand.

“Through these efforts, we are taking our very targeted demographic, women between ages 25-54, and creating a consistent and inviting environment, including transactions, where women can seek support and find solutions to their problems,” continued Ms. Carpenter. “We are bringing women into the iVillage.com network at key points in their lives on issues that are most important to them, such as health, work and parenting, and we are building sustainable revenue streams from the loyalty derived from that relationship. For example, in the parenting space, we have the two leading content brands and well over 50% market share. Through the acquisitions of iBaby and Lamaze and the recent iMaternity joint venture, we have made it possible for women to enter the iVillage franchise at the time of pregnancy and read magazines, join support groups, view in- hospital television channels, research baby names, as well as purchase maternity clothes and baby products, all within the iVillage experience,” said Ms. Carpenter.

The Company reported negative earnings before interest, taxation, depreciation and amortization ("EBITDA") of approximately $13.6 million for the quarter ended June 30, 1999 and $10.4 million for the comparable year-ago quarter. Negative EBITDA for the quarter ended March 31, 1999 totaled $15.0 million. Excluding charges related to iVillage’s promotional agreement with NBC, negative EBITDA for the second quarter 1999 was $9.2 million. iVillage reported a net loss of $17.1 million for the second quarter, or a net loss per share of $0.72 This is a 3% decrease from a net loss for the quarter ended March 31, 1999 of $17.6 million. Net loss for the same period one year ago was $11.8 million. Weighted average shares outstanding used for EPS were 23.7 million.

The Company also announced a $28.5 million investment in a marketing campaign that will consist primarily of broadcast and print advertisements. This campaign is expected to commence during the last week of the third quarter of 1999 and run primarily in the fourth quarter of 1999 and into the first quarter of 2000.

“Our strong results demonstrate the positive momentum in our business model and we view this as a great opportunity to solidify our brand leadership. We intend to launch an aggressive marketing campaign over the fourth quarter 1999 and into the first quarter 2000, which we expect to translate into gains in key metrics: reach, members and revenue, and propel the iVillage brand well out in front of the marketplace. We are building upon our business model in six areas: community, sponsorships, commerce and direct marketing, consistent content and broadband initiatives,” said Ms. Carpenter.

COMMUNITY/BRAND

As a fundamental contributor to the iVillage business model, the Company had strong momentum in the key metrics that measure the depth and indicate the strength of iVillage.com’s community. Volunteers increased 20% over the first quarter, membership increased by 33% and daily ad views were up by 40% in the second quarter. During the second quarter, there were also substantial increases in the number of moderated chats, archived boards and conversations per chat and message boards on iVillage.com. The largest community challenges on iVillage.com saw an increase of 30% in the second quarter over the prior quarter. This translates into deeper user experience. According to the June 1999 Media Metrix report, iVillage.com is seeing 50% more pages per visit and visitors stay twice as long on iVillage.com compared to its peer group.

2 SPONSORSHIPS

In the second quarter, iVillage.com saw continued growth in its sponsorship model, with significant new partnerships. The network saw a 100% renewal with large sponsorships in the second quarter and a 40% increase in sponsors over $250,000. Barter revenue decreased to an all-time low of 11%, down from 13% in the prior quarter and ad views increased 40% for the quarter, compared to the first quarter, as iVillage created new ways to monetize traffic on iVillage.com. The Company designed a new program off the iVillage.com home page that is expected to increase revenues with no additional traffic requirements. This opportunity has been enthusiastically received and iVillage expects to announce the first partners resulting from this program in the third quarter. As more women-focused consumer products and online commerce companies enter the market, iVillage expects to see the size and term of deals lengthen. The Company is also seeing very positive conversion results for commerce players due to its women-focused audience. During the second quarter, John J. McMenamin, formerly President of Turner Private Networks, Inc., joined iVillage’s sales organization as Vice President and General Manager of Sponsorship. He reports to John Glascott, iVillage’s Senior Vice President of Sponsorship.

COMMERCE/DIRECT MARKETING

Key initiatives in iVillage’s commerce business in the second quarter included the Company’s joint venture with Dan Howard Industries, one of North America’s largest manufacturers and retailers of maternity apparel, to launch an online maternity store under the brand iMaternity.com, to provide expecting and new mothers with a comprehensive online shopping resource. During the quarter, the Company was also able to leverage the iBaby brand as it saw strong sales of sponsors’ products such as EPT and Martex. In the first quarter of fully owning iBaby, iVillage heavily leveraged its network and will now add Lamaze to this effort. The Company named Dan Marovitz, previously Global Web Manager at Gateway as President of iBaby and added a strong merchandising team. The Company will continue to invest in its commerce business to support iBaby and advance its competitive position.

CONSISTENT CONTENT

Furthering iVillage.com’s mission to provide “best-of-breed” content and high degree of consistency across the network, iVillage purchased Online Psych in the second quarter, increasing its reach in the consumer health sector, where iVillage.com’s health channel is among the top four sites. The Company believes this acquisition will benefit existing users and encourage new users to visit iVillage.com. Online Psych’s technology will be leveraged for new opportunities that will expand on iVillage.com’s health offerings. iVillage also announced an exclusive partnership with best-selling author and leading health expert Dean Ornish in the second quarter. iVillage.com’s health channel will offer Dr. Ornish’s innovative health philosophy and wellness methods. The Company also launched a new channel, Click!, in a partnership with ZDNet. This incorporates iVillage’s philosophy of partnering with companies for content to reduce cost and provide category expertise while creating consistent iVillage environment and promise.

3 BROADBAND INITIATIVES

The Company is seeing the kind of promotional and programming benefits expected to unfold over time from its relationship with NBC. During the third quarter iVillage.com promotions will be appearing on high profile NBC programs, such as “Providence” and “Passions.” In addition to these programs, iVillage advertisements which ran during the tennis finals at Wimbledon increased traffic to iVillage.com by 20%, versus the same day in previous weeks. The Company is in active discussions for additional promotional and programming opportunities with NBC. Betty Hudson, who was named Senior Vice President, Corporate Communications, responsible for all corporate-communications and public-affairs initiatives undertaken by the company, including public relations, brand development, investor relations, employee communications, and related marketing- communications activities is spearheading iVillage’s initiatives with NBC, as well as other media outlets. Ms. Hudson previously spent 17 years at NBC as head of all corporate communications. She also served as Senior Vice President of Corporate Communications for the Reader's Digest Association.

The Company has also leveraged the iVillage experts, by launching its first radio and video programming on the network. These programs will be distributed on Snap, @Home and Roadrunner and represent a low-cost entry into broadband that is consistent with the solutions positioning of iVillage.com and the personalization power of the Internet.

About iVillage.com: The Women's Network iVillage.com: The Women’s Network (http://www.ivillage.com and AOL keyword: ivillage) is a leading women’s network online providing practical solutions and support for everyday problems facing women between the ages of 25 to 54. iVillage is organized into branded communities that focus on issues of most importance to women and provides interactive services, peer support and online access to experts through 16 channels. Content channels include Parent Soup, Health, Money Life, Career, Work from Home, Relationships, Fitness & Beauty, Click: Where Computers Make Sense, Pets, Travel, Parents Place, Food, Book Club and Astrology and are complemented by two shopping channels, iBaby and iMaternity. Established in 1995 and headquartered in , iVillage Inc (Nasdaq: IVIL) is a new media company with the mission of humanizing cyberspace for women. The company is widely recognized as an industry leader in developing innovative sponsorship and commerce relationships that match the desire of marketers to reach women with the needs of iVillage.com members for relevant information and services.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: iVillage Inc. has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning iVillage's business, operations and financial condition. The words or phrases "can be", "expects", "may affect", "may depend", "believes", "estimate", "project" and similar words and phrases are intended to identify such forward-looking statements. Such forward-looking statements are subject to various known and unknown risks and uncertainties and iVillage cautions you that any forward-looking 4 information provided by or on behalf of iVillage is not a guarantee of future performance. Actual results could differ materially from those anticipated in such forward-looking statements due to a number of factors, some of which are beyond iVillage's control, in addition to those discussed in iVillage's other press releases, public filings and statements by iVillage's management, including (i) the volatile and competitive nature of the Internet industry, (ii) changes in domestic and foreign economic and market conditions, (iii) the effect of federal, state and foreign regulation on iVillage's business, (iv) failure of iVillage, its vendors or other third parties to achieve Year 2000 compliance and (v) the effect of any future acquisitions. All such forward-looking statements are current only as of the date on which such statements were made. iVillage does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

Contacts:

Media: iVillage Jason Stell 212-206-3141 [email protected]

Analysts and Investors:

Abernathy MacGregor Frank Carina Thate 212-371-5999 [email protected]

5 iVillage Inc. and Subsidiaries Consolidated Balance Sheets $ in thousands June 30, December 31 1999 1998 ASSETS: (Unaudited)

Current assets: Cash and cash equivalents $ 85,279 $ 30,825 Accounts receivable, net 2,843 2,078 Other current assets 1,162 715 Total current assets 89,284 33,618

Fixed assets, net 6,968 7,380 Goodwill and intangible assets, net 61,631 4,535 Other assets 189 188 Total assets $ 158,072 $ 45,721

LIABILITIES and STOCKHOLDERS' EQUITY:

Current liabilities: Accounts payable and accrued expenses $ 10,398 $ 11,560 Capital leases payable 73 137 Deferred revenue 2,117 1,839 Other current liabilities 192 163 Total liabilities 12,780 13,699

Commitments and contingencies

Stockholders' equity: Series A, convertible preferred stock - par value $.0005, 1,000,000 shares authorized, issued and outstanding - 1 Series B and B-1, convertible preferred stock - par value $.0005, 5,929,846 shares authorized, 4,777,746 issued and outstanding - 2 Series C, convertible preferred stock - par value $.0005, 13,528,765 authorized, 13,193,445 issued and outstanding - 7 Series D, convertible preferred stock - par value $.0005, 13,000,000 authorized, issued and outstanding - 6 Series E, convertible preferred stock - par value $.0005, 12,280,702 shares authorized, 11,730,948 issued and outstanding - 6 Common stock, par value $.01, 35,000,000 and 65,000,000 shares authorized, 2,113,385 and 24,324,218 issued and outstanding at December 31, 1998 and June 30, 1999, respectively 243 21 Additional paid-in capital 302,430 112,849 Accumulated deficit (134,549) (76,275) Stockholders notes receivable (14,681) (565) Unearned compensation (8,151) (4,030) Total stockholders' equity 145,292 32,022 Total liabilities and stockholders' equity $ 158,072 $ 45,721 iVillage Inc. and Subsidiaries Consolidated Statements of Operations

$ in thousands, except per share data (Unaudited) Three months ended June 30, Six months ended June 30, 1999 1998 1999 1998

Revenues: Advertising, sponsorship and other $ 5,994 $ 2,118 $ 10,684 $ 4,318 Commerce 2,114 520 3,888 520 Total revenues 8,108 2,638 14,572 4,838

Operating expenses: Production, product and technology 5,563 3,766 12,150 6,423 Sales and marketing 7,852 7,184 15,634 12,054 Sales and marketing - NBC expenses 4,466 - 7,572 - General and administrative 3,847 2,061 7,872 4,206 Depreciation and amortization 4,665 1,538 7,519 2,658

Total operating expenses 26,393 14,549 50,747 25,341

Loss from operations (18,285) (11,911) (36,175) (20,503)

Interest income, net 1,182 188 1,512 264 Loss on sale of Web site - (165) - (165) Minority interest (income) - 138 - 138

Net loss (17,103) (11,750) (34,663) (20,266)

Preferred stock deemed dividend - - (23,612) -

Net loss attributable to common stockholders $ (17,103) $ (11,750) $ (58,275) $ (20,266)

Basic and diluted net loss per share attributable to common shareholders $ (0.72) $ (1.85) $ (3.98) $ (3.28) Weighted average shares of common stock outstanding used in computing basic and diluted net loss per share 23,728 6,337 14,656 6,179

Pro forma basic and diluted net loss per share $ (0.72) $ (2.77) Shares of common stock used in computing pro forma basic and diluted net loss per share 23,728 21,027

Other supplemental information: Negative EBITDA $ (13,620) $ (10,400) $ (28,656) $ (17,872) Negative EBITDA without NBC expenses $ (9,154) $ (10,400) $ (21,084) $ (17,872)

Net loss per share excluding deemed dividend $ (0.72) $ (2.37) Pro forma earnings per share excluding deemed dividend $ (0.72) $ (1.65)