Snowball Announces 33% Staff Reduction

Posted on April 18, 2001

Snowball, an online network for young adults founded in 1999, announced that it has reduced its workforce by approximately 55 employees, or 33 percent. Snowball also announced that it received notification from Nasdaq on April 10, 2001 that its common stock is subject to delisting from the Nasdaq National Market for failure to comply with Marketplace Rule 4450(a)(5), requiring maintenance of a minimum bid price of $1.00 per share. Snowball has requested a hearing before the Nasdaq Listings Qualification Panel to review Nasdaq's decision.

``As we previously announced, we are committed to reducing our operating loss to achieve cash-flow breakeven by the end of 2001,'' said Mark Jung, Snowball's CEO. ``We continue to see weakness in the online advertising industry and therefore are taking further actions to reduce our expenses to bring them in line with our revenue expectations. We believe this reduction better positions us to maintain our award-winning Gen i media properties as we continue to focus on diversifying our revenue streams through performance-based marketing products, subscription services, and `beyond the banner' advertising programs.''