Court Approves Student Advantage, Inc. Purchase of, One of Nation’s Most Popular Community Web Sites

October 20, 2000

BOSTON and SAN DIEGO, Oct. 19 — A Federal Bankruptcy Court

today approved the sale of substantially all of the assets of,

Inc., including its popular Web site,, to Student Advantage,

Inc., the commerce connection for millions of college students and the

businesses and universities that serve them. The acquisition, first announced

August 22, is expected to be completed by October 30.

The court also confirmed the July 28 sale to Student Advantage of another, Inc. subsidiary, eStudentLoan LLC, for approximately

$1 million. eStudentLoan will be combined with Student Advantage’s

Scholarship Search. Additionally, the court approved today the assignment to

Student Advantage of the multi-million dollar broadcast media agreement NBC

had with

San Diego-based is the leading online integrated

communications and media Internet company for college students and is ranked

among the nation’s leading Web sites overall. has more than

3 million registered online members at 3,600 college and university campuses.

“The breadth and depth of CollegeClub’s daily interaction with the college

audience is unmatched. That strength, in combination with Student Advantage’s

superior proprietary content and commerce offerings will result in the most

comprehensive online destination for the higher education community, one that

is both powerful and resourceful,” Sozzi said. “This combination also creates

an offline and online powerhouse that will give our commerce and advertising

partners unmatched integrated sales and marketing opportunities.” will retain its name and brand identity and operate as a

division of Student Advantage, Inc. It will also serve as the company’s

lifestyle and communications portal, according to Student Advantage Chairman

and Chief Executive Officer Raymond V. Sozzi Jr., while

will serve as the commerce connection linking students, businesses and

universities. Some of Student Advantage’s proprietary content and services

tools, such as Student Advantage’s Academic Research, Scholarship Search, and

U-Wire will be available to’s user base, becoming a potential

incremental revenue source for Student Advantage.

The company also said it expected to build on existing CollegeClub

partnerships, such as a multi-year marketing and promotions agreement with

General Motors; achieve significant cost savings in the College Club division

as a result of the already completed staff reductions of approximately

250 employees, the reduction or elimination of overlapping technology-related

expenses with Student Advantage, such as hosting fees, software licenses, ad

serving platforms, and database development and maintenance costs; and

stabilize product offerings and vendor relationships.

In addition to providing students with a valuable range of products and

services off- and online, Student Advantage also provides sophisticated

business-to-business marketing, technology licensing, and events and

promotions services, and supplies information services, Internet content and

data management services to colleges and universities.

The purchase price consists of approximately $7 million in cash and

1.4 million shares of Student Advantage common stock and the assumption of

certain liabilities. Up to an additional $5 million in cash will be paid to

College Club if certain Web site revenue performance goals are met during

2001. The company said in August that it had obtained a $10 million facility

from Fleet Bank.

Student Advantage did not purchase certain other College Club properties,

such as and Izio.

David Wogahn, vice president of Student Advantage, has been named general

manager of College Wogahn was the co-founder and chief operating

officer of University Netcasting and joined Student Advantage when it acquired

his firm, now the FANSonly Network, in June 1999.

About Student Advantage

Student Advantage, Inc. (Nasdaq: STAD) is the commerce connection for

millions of college students and the businesses and universities that serve

them, and provides each with a valuable range of products and services.

Student Advantage reaches students online and offline through its award-

winning Web site,, and Student Advantage Membership

Program, provides sophisticated business-to-business marketing and events and

promotion services, and supplies information services, Internet content and

data management services to colleges and universities.

Student Advantage has proprietary commerce relationships with nearly 50

national retailers and businesses, including AT&T, Amtrak, Staples, and Tower Records, and 15,000 local participating locations in

125 cities throughout the country. The company has relationships with nearly

1,000 of America’s leading colleges and universities.

Contact Info:

James Dorsey

Public Relations


Chris Andrews

Investor Relations


This announcement contains forward-looking statements which are based on

current expectations and involve a number of risks and uncertainties. There

are a number of important factors that could cause the actual results of the

CollegeClub acquisition to differ materially from those expressed in the

forward-looking statements made by Student Advantage. Investors are directed

to consider the risks of acquiring and integrating the assets of new

businesses, of raising revenue on the Internet, particularly on community

sites, doing business on the Internet, the volatility of Internet stocks in

general, the cyclical nature of Student Advantage’s business and other risks

and uncertainties discussed in documents filed by Student Advantage with the

Securities and Exchange Commission including, without limitation, under “Risk

Factors” set forth in Student Advantage’s Form 10-Q and other periodic

reports. We undertake no obligation to publicly release the result of any

revisions to these forward-looking statements, which may be made to reflect

events or circumstances after the date hereof or to reflect the occurrence of

unanticipated events.