DENVER, May 9, 2001 — Customer Communications Group (CCG) has been selected by Hastings Entertainment, Inc., to integrate the company’s marketing initiatives across core operations and strengthen multi-channel shopper loyalty. Hastings Entertainment, a multimedia entertainment retailer, operates 142 superstores and an e-commerce site at www.gohastings.com.

CCG is creating a customized application to consolidate Hastings’ customer transaction information and develop marketing campaigns that reflect individual customers’ buying preferences — regardless of where and how they shop. This enterprise-wide project will provide a complete marketing automation solution, from initial querying to campaign management and response analysis.

“Our experience with other successful retailers has shown that, time and time again, multi-channel loyalty programs significantly increase spending per customer, profits per customer and ROI,” said Sandra Gudat, president of CCG.

Analysts agree. According to Jupiter Communications analyst Michele Rosenshein, multi-channel shoppers spend up to 30 percent more money than single-channel shoppers, yet most retailers are not identifying and marketing properly to these customers.

“Hastings Entertainment recognizes the key to developing customer relationships is to access actionable information about our customers’ needs, preferences and past-purchase behaviors,” said Alan Van Ongevalle, vice president of marketing. “CCG is helping us develop a CRM strategy that will impact Hastings’ customers with the right message at the right time and with the right product.”

CCG will start by tracking individual customer transactions across multiple channels, analyzing customer information and creating customer profiles.

About Hastings Entertainment

Hastings Entertainment, Inc. is a leading multimedia entertainment retailer that combines the sale of books, music, software, periodicals, videocassettes, digital video discs (DVDs), and used compact discs (CDs) and DVDs with the rental of videocassettes, video games and DVDs in a superstore format. As of April 17, 2001, Hastings operated 142 superstores and one college store in small to medium-sized markets located in 22 states, primarily in the Western and Midwestern United States. Hastings also operates a multimedia entertainment e-commerce Web site offering a broad selection of books, music, software, videocassettes, video games and DVDs.




ABOUT CUSTOMER COMMUNICATIONS GROUP

Customer Communications Group, Inc. (CCG) pioneered the concept of relationship marketing more than 25 years ago and continues to prove its leadership position by delivering results that can increase sales 8 percent to 15 percent and generate 200 percent to 400 percent ROI.

As a full-service relationship marketing agency, CCG offers expertise in strategic consulting, analytical data services, creative communications and multimedia solutions ranging from print production to Website development. CCG also offers creative and production services for newsletters, magazines, collateral materials, fax-back systems, email and direct marketing communications.

CCG has implemented profitable programs for Fortune 1000 retail, financial and telecommunications clients including Dillard's, G.H. Bass & Co., Hibernia Bank, IBM, Nordstrom, Payless ShoeSource, Pier 1 Imports, Tommy Hilfiger and Wachovia Bank.

For more information about Customer Communications Group, visit http://www.customer.com or contact Sandra Gudat, president/CEO of Customer Communications Group, 12600 West Cedar Drive, Denver, CO, 80228; (303) 986-3000; (800) 525-0313; Fax (303) 989-4805; or sandra@customer.com.