United Online Acquires Online Digital Photo Sharing Business From Homestead Technologies [March 28, 2005]

WOODLAND HILLS, Calif., Mar 28, 2005 (PRIMEZONE via COMTEX) -- United Online, Inc. (UNTD), a leading provider of consumer Internet subscription services, today announced that it has acquired certain assets related to PhotoSite, the online digital photo sharing business of Homestead Technologies, Inc., for approximately $10 million in cash and has entered into a related licensing and support agreement with Homestead Technologies.

PhotoSite is a premier photo-sharing service that enables anyone - from casual to amateur to professional photographers - to quickly and easily display photos on their own personal photo website. With both free and subscription packages available, PhotoSite includes custom albums and photoblogs, full-screen slideshows, online print ordering and much more. Homestead employees currently dedicated to the PhotoSite service will join United Online and will continue to be based in the San Francisco Bay Area.

"The acquisition of PhotoSite, with its compelling functionality and cutting-edge technologies, is a perfect fit with our existing portfolio of high-quality consumer Internet subscription offerings," said Mark R. Goldston, chairman, CEO and president of United Online, Inc. "Digital photography, specifically photo sharing, continues to be one of the most popular online activities, and PhotoSite has created a feature-rich service that is extremely easy to use. While PhotoSite is clearly attractive as a stand-alone offering, we also intend to integrate it into our existing services - including Classmates.com, NetZero and Juno, and our consumer Web-hosting businesses - enabling us to enhance our current offerings while reaching out to the more than 45 million registered users across our numerous services. We look forward to welcoming the talented PhotoSite staff to the United Online family."

"By joining forces with United Online, PhotoSite will be able to carry on the development of new features for existing customers, while also focusing on making photo sharing even more accessible to millions of digital camera owners whose photos are still trapped on their hard disks," said Justin Kitch, CEO of Homestead Technologies. "While PhotoSite will no longer be part of the Homestead family, I am convinced that United Online will continue our commitment to developing creative, exceptional products that delight non-technical consumers."

About United Online
United Online, Inc. (UNTD) is a leading provider of consumer Internet subscription services through a number of brands, including NetZero, Juno and Classmates. The company's pay services include Internet access, accelerated dial-up services, premium email, personal Web-hosting and domain services and community-based networking. It also offers consumers free Internet access, email and Web hosting. The company's access services are available in more than 8,200 cities across the United States and in Canada. United Online is headquartered in Woodland Hills, CA, with offices in New York, NY, Renton, WA, San Francisco, CA, Orem, UT, and Hyderabad, India. For more information about United Online and its Internet subscription services, please visit http://www.untd.com.

About Homestead
Homestead Technologies, Inc. is the leading provider of simple and affordable Web design services for small businesses, non-profits and individuals. Millions have used Homestead's site design, hosting, marketing and e-commerce capabilities to create highly customized Web sites. Homestead's services include Homestead DIY, Homestead Storefront, and Homestead QuickSites. The company is based in Menlo Park, California, and its services are available at www.homestead.com. Homestead is a trademark of Homestead Technologies, Inc., Menlo Park, CA.

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, expectations regarding the role PhotoSite will play in the company's community based networking, Internet access, and web site hosting businesses. Potential risks and uncertainties include, among others: that PhotoSite will not be successfully integrated into our community based networking, Internet access, and web site hosting businesses; the company's ability to integrate acquisitions, including PhotoSite; problems associated with the company's billing systems; the company's inability to retain key personnel; unanticipated technological problems or developments; risks associated with litigation; and unanticipated governmental regulation. 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."

SOURCE: United Online, Inc.