MINNEAPOLIS - May 23, 2000 - Net Perceptions, Inc. (Nasdaq: NETP) announced today that The Children's Place (Nasdaq: PLCE), a specialty retailer of apparel and accessories for children from newborn to 12 years of age, with 344 retail outlets and an expanding e-Commerce presence, was able to demonstrate dramatic click-through and conversion rates in a targeted email campaign using Net Perceptions' one-to-one personalized email application.

In a new pilot study, The Children's Place employed Net Perceptions for Marketing Campaigns to target a group of customers whose past buying patterns suggested a potential interest in five products selected by The Children's Place.  Using Net Perceptions award-winning predictive algorithms, 19.1 percent of the recipients of the emails clicked on the link provided to view the product, and 14.3 percent of those individuals purchased the product featured and in some cases, a related product also suggested by the Net Perceptions Recommendation Engine.

"These are spectacular results," said Debra Brummer, director of e-Commerce for childrensplace.com. "The Net Perceptions for Marketing Campaigns product produced results that far exceeded both our expectations and industry averages.  We are looking forward to significantly expanding the use of this solution to much larger email campaigns."

According to a study earlier this year by Forrester Research, the average click-through rate for email campaigns based on in-house customer lists is 10 percent -- about one-half the Children's Place results.  The conversion rate to sale from click-through of the average campaign is 2.5 percent, representing an overall conversion rate of 0.25 percent.  By comparison, The Children's Place demonstrated a sale conversion rate from click-through of 14.3 percent and an overall conversion rate of 2.7 percent -- over 10 times the industry average.

"These results further support our belief that Net Perceptions solutions can translate into an immediate return on investment for our customers," said Steven Snyder, president and CEO of Net Perceptions.  "Not only did our product far exceed the goals established by The Children's Place, but we were able to implement our solution and conduct this test campaign in near record time."

According to Brummer, The Children's Place and Net Perceptions optimistically hoped to achieve a 9 percent click-through rate and a ratio of 10 percent sales (or 0.9 percent overall conversion rate), significantly less than the 19.1 percent click-through and 2.7 percent overall sales conversion rate actually achieved. Moreover, the company expected those orders to be roughly 50 percent of its average "basket size."

"Not only was our overall sales rate three-times our expected goal," said Brummer, "but the average basket size of the orders placed was 114.5 percent of our normal order.  We learned from our test that Net Perceptions not only helped us boost sales of the five selected items, but also prompted sales of related items not part of the study.  To top it all off, Net Perceptions field consultants were able to implement their solution in just eight days, in time for the Easter season."

Encouraged by these results, The Children's Place expects to do a larger campaign in June that uses a dynamic page populated from the actual recommendation and a targeted customer base of 30,000 plus.

About Net Perceptions:

Net Perceptions is a leading provider of enterprise-wide personalization and precision marketing software solutions for Internet and multi-channel retailers.  Its software is designed to help retailers understand customers individually, optimize product assortments, prices and inventories and offer the right product to the right customer at the right price.  Net Perceptions' customers include many of the world's best-known brands including: Art.com, Bertelsmann, CDNOW, The Children's Place, Egghead.com, eToys.com, Fingerhut, Hudson's Bay Company, J.C. Penney, Procter & Gamble, Tower Records and Walgreens.  Incorporated in Delaware, July 3, 1996, the company has offices in Minneapolis; San Francisco; New York; Austin, Texas; Richardson, Texas; Berkshire, U.K. and a joint venture operation in Japan. For more information about Net Perceptions products visit www.netperceptions.com or call 800-466-0711.

Net Perceptions is a registered trademark of Net Perceptions. All other trademarks are the property of their respective owners.  This news release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the company's limited operating history, delays in product development, development of the Internet market, changes in product pricing policies, competitive pressures, and the risk factors detailed from time to time in the company's periodic reports and registration statements filed with the U.S. Securities and Exchange Commission.