iUniverse Announces Plan to Invest in Books by Top-Performing Authors

"Star Program" Designed to Help Authors Increase Book Sales; New Publishing, Marketing Services Provide Choice, Flexibility for Authors

Lincoln, Neb. - January 14, 2003 - iUniverse, one of the largest publishers in the United States, today announced the first in a series of new programs and offerings designed to give authors unprecedented support and flexibility in publishing, marketing and selling their books.

Through the company's new "Star Program," iUniverse will invest in books that demonstrate promising initial sales. iUniverse will work with Star authors to create customized marketing plans then help them implement tailored programs. Assistance available through iUniverse includes:

• Securing reviews
• Direct marketing initiatives
• Book packaging
• Co-op advertising
• Securing media coverage

Pulitzer Prize nominee and iUniverse author Ted Rall, who recently published Gas War: The Truth Behind the American Occupation of Afghanistan through iUniverse, says the Star Program is a marked contrast to current publishing industry practice, where typically only blockbuster-selling authors receive marketing support.

"The Star Program is perfect for authors who are self-driven and motivated to make their books successful," says Rall. "iUniverse is willing to take chances on its authors, and that's rare these days."

iUniverse will also present titles from promising Star Program authors to publishing industry partners such as Kensington Publishing Corp., which publishes 7 percent of the mass market books sold in the United States. iUniverse authors that have moved on to success with Kensington include Ruby Ann Boxcar, author of Ruby Ann's Down Home Trailer Park Cookbook, and Brandon Masey, author of Thunderland.

"We see our business as an 'incubator' for talented or undiscovered authors," says Kimra Hawley, president and CEO of iUniverse. "We go beyond just helping authors publish and distribute their books. We help authors determine if there is an audience for their book, then pave the way for them to find acceptance with traditional publishers and agents. This provides value to our authors and to the industry as a whole."

New Publishing and Marketing Services Provide Choice, Flexibility for Authors

iUniverse also announced that it has repackaged its publishing services to provide authors greater flexibility in selecting the combination of services that best suits their needs. Authors can start with one of two packages:

• "Select Program," the basic service that includes publication of a trade paperback with custom front and back covers, ISBN assignment, a marketing toolkit, and distribution via the iUniverse online bookstore. This package is priced at $199.
• "Premier Program," the comprehensive service that adds an editorial review and broad distribution to more than 25,000 online and traditional bookstores, including Barnes & Noble.com (NASDAQ: BNBN) and Amazon.com (NASDAQ: AMZN). This package is priced at $449.

Both packages offer numerous "a la carte" options, including copyediting, hardcover binding, eBook delivery, and others. These options allow authors to customize their publishing and marketing programs, giving them complete control over their project. As further evidence of iUniverse's commitment to supporting its authors after publication, two new marketing products are also available: a "Marketing Success Workbook" to help authors create individualized marketing plans for their book, and a "Booksigning Success Kit" to help authors arrange successful booksigning events.

About iUniverse, Inc.

iUniverse helps individuals publish, market, and sell fiction and non-fiction books. The company is one of the largest publishers in the United States and publishes more than 5,000 new titles per year. iUniverse publishing programs are endorsed by industry leading author organizations, including the Authors Guild, ASJA, and the Mystery Writers of America. The company's major investors include Warburg Pincus and Barnes & Noble.