January 19, 2012

Constant Contact Acquires CardStar, Inc.; Adds Mobile Loyalty Technology to its Suite of Online Marketing Tools to Help Small Businesses Grow

Acquisition expands company's position in three important growth areas for the company's small business customers: mobile, loyalty, and consumer

WALTHAM, Mass.--(BUSINESS WIRE)-- Constant Contact®, Inc. (NASDAQ: CTCT), the trusted marketing advisor to more than 450,000 small organizations worldwide, has acquired privately owned CardStar Inc., the leading loyalty platform that helps shoppers stay connected to their favorite merchants. With over two million users, Boston-based CardStar is a leading developer of mobile applications that extend the use of loyalty cards and mobile coupons among consumers. The acquisition marks the latest milestone in Constant Contact's evolution from an email marketing company to the leading provider of online marketing tools that help small businesses create and grow customer relationships. Financial details of the transaction were not disclosed.

"The CardStar loyalty platform takes advantage of the anytime, anywhere nature of mobile — making it an excellent complement to our growing suite of engagement marketing tools for small businesses. CardStar's unique mobile application is a natural extension of our brand, bringing consumers and merchants together before, during, and after the sale to help drive repeat business," said Gail Goodman, CEO of Constant Contact.

Constant Contact will continue to operate CardStar's free mobile loyalty application, which is available on major mobile platforms, including iPhone®, Android®, and Blackberry®. The CardStar application consolidates membership and rewards cards on smartphones, letting consumers use a single application rather than a series of physical cards and enabling merchants to tailor mobile deals and information to their customers. Merchants can track purchase behavior to reward loyalty, simply and easily.

"For small businesses, it's all about finding and connecting with their next customer, whether that customer is returning or brand new," said Goodman. "Today's consumers don't just want — but expect — to access information and make decisions on the go, and they want to be rewarded for their support and loyalty. The CardStar mobile loyalty application lives at the intersection of these needs, letting consumers engage with businesses on the go and providing businesses with expanded opportunities for the kind of customer engagement that drives business results."

CardStar's employees will join the Constant Contact team, including CEO and Founder Andy Miller and CTO and Founder Danny Espinoza. Miller will serve as director of mobile products, reporting to Joel Hughes, senior vice president of strategy and corporate development. Espinoza will join Miller's team to lead future product direction. Constant Contact's strategy and corporate development group is based in the company's Waltham, Mass., headquarters. "We're thrilled to have Andy, Danny, and the CardStar team join us here at Constant Contact," said Goodman. "The CardStar team brings us fantastic experience, and our shared innovation vision will surely support small business success."

"We share a common goal of supporting businesses' ability to grow by connecting with their customers," Miller said. "We are so pleased with CardStar's success so far. Joining forces with Constant Contact accelerates our growth path and opens up new opportunities for small businesses to take advantage of our innovations in mobile, loyalty, and consumer technology."

About Constant Contact, Inc.

Constant Contact is revolutionizing the success formula for small organizations through affordable, easy-to-use Engagement Marketing™ tools that help create and grow customer relationships. More than 450,000 small businesses, nonprofits, and associations worldwide rely on Constant Contact to drive ongoing customer dialogs through email marketing, social media marketing, event marketing, and online surveys. All Constant Contact products come with unrivaled KnowHow, education, and free coaching with a personal touch, including award-winning customer support.

Constant Contact and the Constant Contact Logo are registered trademarks of Constant Contact, Inc. All Constant Contact product names and other brand names mentioned herein are trademarks or registered trademarks of Constant Contact, Inc. All other company and product names may be trademarks or service marks of their respective owners.

Cautionary Language Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the impact of the acquisition of CardStar on Constant Contact's business and operations, Constant Contact's plans to continue to offer CardStar's loyalty application, CardStar's status as a leading developer of mobile applications that extend the use of loyalty cards and mobile coupons among consumers, the evolving nature of Constant Contact's business model and the complementary nature of CardStar's business. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of our management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Constant Contact's control. Constant Contact's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, the company's ability to successfully integrate CardStar's offering and employees, the company's ability to attract new customers and retain existing customers, the company's dependence on the market for email marketing services for small businesses, non-profits, and associations, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which the company operates, adverse regulatory or legal developments, the company's ability to continue to promote and maintain its brand in a cost-effective manner, changes in the competitive environment, the company's ability to compete effectively, the company's ability to successfully develop and introduce new products and add-ons or enhancements to existing products, the company's ability to manage growth, the company's ability to attract and retain key personnel, the company's ability to protect its intellectual property and other proprietary rights, and other risks detailed in Constant Contact's most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Constant Contact's views as of the date of this press release. The company anticipates that subsequent events and developments will cause its views to change. Constant Contact undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Constant Contact's views as of any date subsequent to the date of this press release.

(CTCT-F)

Media Contact:
Constant Contact
Erika Dornaus, 781-482-7039
pr@constantcontact.com
or
Investor Contact:
Constant Contact
Jeremiah Sisitsky, 339-222-5740
jsisitsky@constantcontact.com

Source: Constant Contact, Inc.

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