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Constant Contact Passes 25,000 Customer Mark; Ends Cash Flow Positive Year

December 15, 2004 - Waltham, MA

Constant Contact, the leading permission Do-It-Yourself Email Marketing® service for small and medium businesses and associations announced today that it recently passed its 25,000 customer mark, adding over 5,000 new customers in the fourth quarter alone. Constant Contact has also reached a significant corporate milestone wrapping up a cash flow positive 2004 with annual revenue growth of 82%. The company added 20 new employees in 2004 and is actively hiring to fill more than 25 new positions across the organization in 2005.

The growth in Constant Contact's numbers shows that an increasing number of small businesses are adopting email marketing. These businesses realize that email is the most cost- effective way to maintain customer relationships and boost bottom line profits. Maintaining customer contact by telephone or with traditional mail is costly and time consuming. In contrast, email marketing is immediate, easy, measurable and costs fractions of a penny per email.

"More and more small businesses are seeing the value in an outsourced service for their customer relationship efforts," said Gail Goodman, Constant Contact's chief executive officer. "It's not about "email marketing" or technology, but instead about good old fashioned customer contact that is as basic as the handshake. The good news for small businesses is that the price of the handshake is far less with email and with a far greater return on investment than with telephone and traditional mail communications."

The growing trend toward responsible email marketing has also strengthened the value proposition of the Constant Contact service. Most small businesses do not have the financial resources to engage a marketing agency, nor do they have the technical expertise to go it alone. Constant Contact provides education and coaching tips for users, automates CAN-SPAM compliance and best practices, and increases the effectiveness of email campaigns for small businesses.