FREESERVE AND FAIRMARKET(SM) JOIN FORCES TO EXPAND LEADING UK AUCTION SITE.

Top U.K. portal awards FairMarket multi-year contract

PR Newswire, London, August 29. This press release is transmitted on behalf of FairMarket, Inc.

London and Woburn, Mass., /PR Newswire/ -- Freeserve plc, the UK's leading Internet company, and FairMarket, Inc. (Nasdaq: FAIM) a leading provider of outsourced, online selling solutions, today announced that the two companies will work together to deliver more comprehensive auction capabilities for Freeserve's auction site, www.fsauctions.co.uk. FSauctions is one of the most visited online auction venues in the U.K.

In addition to providing traditional online auction capabilities, FairMarket's technology offering will allow Freeserve to expand its dynamic pricing solutions to include automatic price markdowns and RequestIt(SM)!, a service that matches buyer requests with sellers able to fill their orders.

"The next stage of growth for FSauctions requires a technology partner that can provide a full range of selling services along with reliable and scalable hosting," said Frank Keeling, chief operating officer of Freeserve. "FairMarket will provide this level of support, and we look forward to working together to build our e-commerce offering while delivering to our members a dynamic auction trading place and a first-class shopping experience."

"We are pleased to work with Freeserve to power their auction site and to expand their e-commerce capabilities with our full suite of online selling solutions," said Louis Shipley, president of FairMarket International. "As one of the leading portals and most frequently visited sites in the UK, Freeserve is a strategic customer win for us. We look forward to working with them to deliver superior e-commerce capabilities for their two million users."

FairMarket Solutions

FairMarket provides retailers, manufacturers, small businesses and communities with fully hosted e-commerce selling solutions. The company's products include AuctionPlace(SM), an online, private-label auction solution, AutoMarkdown(SM), a falling price clearance service, and Request It!, a shopping by request service that matches buyers with sellers.

About FSauctions

FSauctions was established in November 1999 and is the Freeserve online auction site. It is available to all two million Freeserve members, plus the entire online community. www.fsauctions.co.uk offers everything from antiques to computers, business goods to memorabilia, holidays to cars and sports goods to Beanie Babies. Newsquest Media Group, the second largest publisher of regional newspapers in the UK, is a venture partner of FSauctions, giving the auction site access to an overall circulation in excess of 10m copies.

About Freeserve

Freeserve is the UK's leading portal with an integrated offering of UK- focused content, e-commerce services and free Internet access. Freeserve has approximately two million active registered accounts and in May 2000 recorded over 150 million page impressions.

Freeserve was launched in September 1998 as part of the Dixons group, Europe's leading consumer electronics retailer. Freeserve distributes its access software through Dixons' network of over 1,000 Dixons, Currys, PC World and The Link stores plus gameplay stores.

About FairMarket

FairMarket, Inc. is the leading provider of outsourced, online, distributed selling solutions, including hosted auction, falling price, and shopping-by-request services. The company helps businesses generate online revenue by expanding e-commerce functionality and strengthening brand recognition. In the U.S., the FairMarket Network(SM) includes the some of the world's leading portals and vendors on the Web with the potential to reach millions of online shoppers. The company is headquartered in Woburn, Mass. with offices in the U.K. and Australia. Corporate information can be obtained on the Web at www.fairmarket.com or in the U.S., by calling +1 800-531-7871, or the investor hotline at 1-877-4IR-FAIM. The U.K. office can be reached at +44 0207 203 8424.

This press release contains information about future expectations, plans and prospects of FairMarket, Inc. that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including but not limited to FairMarket's limited operating history; market acceptance of online auction and other e-commerce services; growth of the market for dynamic e-commerce services; the competitive nature of the online markets in which FairMarket operates; currency, regulatory and other risks associated with expansion into international markets; FairMarket's ability to retain existing customers and to obtain new customers; the operation and capacity of FairMarket's network system infrastructure; FairMarket's ability to attract and retain qualified personnel; and the other risks and uncertainties discussed under the heading "Risk Factors" in FairMarket's Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 14, 2000 in connection with FairMarket's initial public offering and the other reports filed by FairMarket from time to time with the Securities and Exchange Commission. FairMarket assumes no obligation to update any of the information included in this press release.