WOODLAND HILLS, Calif., March 20, 2006 (PRIMEZONE) -- United Online, Inc. (Nasdaq:UNTD), a leading provider of consumer Internet subscription services, announced today that its social networking subsidiary, Classmates Online, Inc., has acquired Opobox, Inc., which operates The Names Database at www.namesdatabase.com, for approximately $10 million in cash.
The Names Database is a social networking service that helps members find, connect and keep in touch with friends, family and classmates throughout the world. All member email addresses are kept secure and private, and are never shown on the site. Instead, Namesdatabase.com acts as an intermediary between members, who can send messages through the site to each other. The service has registered over 20 million members globally and registers tens of thousands of new members each day, with the vast majority of members registering as a result of referrals from other members. The majority of Namesdatabase.com members are from outside the United States in numerous countries around the world. Namesdatabase.com has approximately 50,000 pay subscribers and is expected to generate less than a million dollars in revenues in 2006.
"The acquisition of Opobox, Inc. and The Names Database is a great addition to Classmates.com and furthers our overall mission of connecting people," said Mark R. Goldston, chairman, CEO and president of United Online. "The viral marketing techniques underlying the service have enabled Namesdatabase.com to grow its member base dramatically while expending limited marketing resources. We believe the acquisition will complement and help us grow our Classmates.com service while potentially providing a cost efficient distribution channel to market United Online's broad family of services, including VoIP, PhotoSite, Web-hosting and Internet access."
About United Online
United Online, Inc. (Nasdaq:UNTD) is a leading provider of consumer Internet subscription services through a number of brands, including NetZero, NetZero Voice, Juno, PhotoSite and Classmates. The company's services include Internet access, accelerated dial-up services, Voice-over-Internet Protocol (VoIP), premium email, personal web hosting and domain services, photo-sharing services and social networking. United Online is headquartered in Woodland Hills, CA, with offices in New York City, NY, Renton, WA, San Francisco, CA, Orem, UT, Munich, Germany, and Hyderabad, India. For more information about United Online and its Internet services, please visit http://www.untd.com.
Cautionary Information Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements containing words such as "may," "believe," "will," "expect," or similar expressions constitute forward-looking statements. These statements include, without limitation, the ability of the acquisition to grow the company's Classmates service and provide the company a cost-efficient distribution channel. Potential risk and uncertainties include, among others: that the company's marketing efforts will not be effective with The Names Database users; and The Names Database users will not be interested in subscribing to any of the company's other services, including the Classmates service. More information about potential factors that could affect the company's business and financial results is included in the company's annual and quarterly reports filed with the Securities and Exchange Commission (http://www.sec.gov), including without limitation information under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors."