Hearst Corporation to Acquire UGO Networks: Deal Signifies Hearst’s First Major Step Into Digital Entertainment

July 24, 2007 (New York, New York) ─ Hearst Corporation announced today that it will acquire UGO Networks, Inc., a leading online entertainment company. The announcement was made by Victor F. Ganzi, president & CEO, Hearst Corporation; J Moses, CEO of UGO Networks, Inc.; and Kenneth Bronfin, president of Hearst Interactive Media, the division within Hearst that will manage UGO. The privately held companies will complete the deal within the next several weeks. The acquisition is subject to regulatory approval. Terms were not disclosed.

With this acquisition, Hearst will gain, according to Ganzi, “one of the most popular men’s lifestyle brands on the Web. UGO.com, the flagship Web site, is a first-stop destination for the latest news and content on games, movies, television, film, DVDs, music, sports, women and comic books.” With an audience of over 11 million unique visitors in the U.S. and nearly 28 million worldwide, UGO reaches one in 10 online users in the highly coveted male 18-to-34-year-old demographic. UGO is entirely supported by advertising revenue and specializes in effective and customized advertising for blue-chip brands.

“UGO Networks will be another building block in Hearst’s growing Interactive Media division,” Ganzi added. “This merger with UGO Networks will allow us to expand our digital media lineup and to broaden the range of our entertainment properties.”

Bronfin said, “Over the years, J Moses and his team have developed UGO into a very strong Internet business, with a healthy mix of internal and third-party content. As an innovator in the digital entertainment space, UGO continues to build a very substantial, highly sought-after audience base. Hearst’s acquisition of the business will provide a means for UGO to more rapidly expand its content and services offerings while also building its advertiser base.”

Moses commented, “Now is the right time and Hearst is the right partner for UGO Networks. We survived the shake-out and we have built a strong business as an independent dot-com over the past nine years. Now it is time for our next chapter as a part of Hearst, one of the great media companies in the world. Our goal is to become the No. 1 rated men’s lifestyle site on the Web, and Hearst is committed to achieving it. Hearst has strong relationships with all of the major entertainment brands and we look forward to leveraging the Hearst network.”

About UGO Networks, Inc.

UGO Networks is the ultimate online entertainment playground for people with “Gamer DNA.” UGO engages its massive audience with interactive content and information about the hottest games, movies, TV shows, music, comics, technology, sports and celebrities. Attracting a young, predominantly male demographic, UGO reaches 11 million monthly unique U.S. visitors and nearly 28 million worldwide, consistently placing among Nielsen/NetRatings’ Top 10 multi-category entertainment properties. The company delivers customized, high-impact advertising programs for its world-class client base. UGO Networks, Inc. is headquartered in New York City.

About Hearst Corporation and Hearst Interactive Media

Hearst Corporation (www.hearst.com) is one of the nation’s largest diversified media companies. Its major interests include 12 daily and 31 weekly newspapers, including the Houston Chronicle, San Francisco Chronicle, and Albany Times Union; nearly 200 magazines around the world, including Cosmopolitan and O, The Oprah Magazine; 29 television stations through Hearst-Argyle Television (NYSE:HTV) which reach a combined 18% of U.S. viewers; ownership in leading cable networks, including Lifetime, A&E, The History Channel and ESPN; as well as business publishing, including a joint venture interest in Fitch Ratings; Internet businesses, television production, newspaper features distribution and real estate.

Hearst Interactive Media, a unit of Hearst Corporation, manages a portfolio of strategic investments in development-stage companies focused primarily on emerging media and interactive technologies. Investments have included iVillage, Netscape, XM Satellite Radio, Broadcast.com, Exodus, Sling Media and Brightcove. Since 1995, Hearst Interactive Media has invested in over 45 companies. Throughout the Corporation, Hearst Interactive Media provides strategic guidance and advocacy for a wide range of technology-driven operational and development activities.