For Immediate Release, February 16, 2001 Contact: Jana Muntsinger

The Parable Group Creates Parable Interactive

New Entity Represents e-Commerce Initiatives, Benefits Member Stores

San Luis Obispo, California—The Parable Group announces the formation of Parable Interactive, a separate strategic business unit, to manage and implement its e-commerce strategy. Parable Interactive (PI) oversees the marketing and technical aspects of the Parable Private Label e-Stores for both Parable member stores and national ministries.

Parable founder and CEO Steve Potratz serves as CEO of Parable Interactive and says the decision to spin off the new company was made to meet the demands of the growing Internet economy while keeping the parent company focused on serving traditional retail stores. “Our mission at Parable is to help stores grow,” says Potratz, “and this move allows us to take advantage of new opportunities while at the same time honoring our commitment to retailers.”

Even though Parable Interactive is a separate company, its roots are still in retail, explains Ron Johnston, formerly the VP of Technology Services, now the President of Parable Interactive. “Parable Interactive was formed to ensure Parable member stores and various ministries would have an effective website that could benefit each other,” says Johnston, “Where else can member stores have the most advanced technology coupled with the brand of national ministries?”

Locally owned Parable Christian Stores were given the opportunity to launch Private Label eStores in January of 2000 in a service offering Potratz describes as “the fastest growing new program we’ve ever had.” In March 2000, Parable began offering the Private Label service to Christian ministries and has managed to sign some premiere organizations to the program. Parable Interactive is providing eCommerce solutions for CBN TV, PAX TV, ZJam Radio, Concerned Women for America, a host of regional rescue missions and more than 30 other non-profit ministries.

Local Parable stores benefit from each of the ministry connections by receiving the name and mailing address of any customer in their market who makes a purchase on a Private Label ministry site. In addition to the new customer name, the local Parable store shares in a portion of the profits from each sale in their area—regardless of whether the customer was ever on their in-store mailing list.

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The Parable Group Announces Parable Interactive, page two

Parable member stores provide in-store customer service for ministry customers who might want to return or exchange an item ordered over the Internet—giving retailers another opportunity to interact with a new customer face-to-face. “This is a tremendous marriage of retail and ministry groups,” says Potratz.

Future plans include shared mailings where selected ministry donors are introduced to their local Parable store and where local store shoppers are introduced to selected ministry information. Cooperation between the industry’s leading independent retailers and the largest ministries will make Christian products even more accessible to people who need them, according to Johnston. “The Internet is a powerful tool and we’ve been given a chance to use it in a powerful way to expand the territory of Christian retail,” adds Johnston.

Parable Interactive is one of a family of companies under the Parable umbrella. The Parable Group is a California-based marketing and retail services company representing over $400,000,000 in annual sales of Christian products to consumers. Parable Christian Stores consists of more than 300 independently owned Christian retail outlets located in North America. The Parable Group provides diverse marketing tools for its member stores such as e-commerce sites, in-store merchandising kits, exclusive products, weekly bestseller lists and catalogs. In 2000, Parable distributed more than 29.7 million catalogs, newspaper inserts, and other promotional mailings in 25 marketing campaigns.

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February 16, 2001