• May 18, 2004

Hearst has signed a non-binding Memorandum of Understanding with iVillage to amend and extend for an additional three years the companies' magazine content license and hosting agreement.

Under the extension, Hearst would pay to iVillage approximately $12.5 million over three years for hosting and production services related several Hearst magazine Web sites, including: Cosmopolitan, Country Living, Good Housekeeping, Redbook, House Beautiful, Marie Claire and Town & Country. iVillage would receive approximately $4.15 million per year in fees in each year, reflecting an expanded scope of services.

Under the partnership agreement, iVillage would continue to receive a commission on sales of magazine subscriptions generated through links from The iVillage Network.

The companies will continue an advertising arrangement as well: Hearst would continue to receive a revenue share from iVillage on a percentage of the advertising sales appearing on the magazine Web sites, though iVillage would no longer be required to offer Hearst, and Hearst would no longer be obligated to purchase, advertising on The iVillage Network.